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IJEFM
9,2 Events and the blue economy
Sailing events as alternative pathways for
tourism futures – the case of Malta
204 Andrew Jones
Institute for Tourism Travel and Culture, University of Malta, Msida, Malta, and
Received 11 September 2017 Caroline Navarro
Revised 31 January 2018
10 April 2018 Grand Harbour Marina, Birgu, Malta
Accepted 26 April 2018

Abstract
Purpose – The Rolex Middlesea sailing event takes place in Malta on an annual basis. The race forms part of
a number of new tourism initiatives supported by the Maltese Government. These aim to diversify the
Maltese tourism economy from reliance on mass tourism to more niche or specialist forms based, for example,
upon the “Blue Economy”. The purpose of this paper is to focus on the impact and future of sailing events
using the Rolex Middlesea sailing event as a specific case. In turn it evaluates current and future
contributions to both the Maltese tourist economy and broader experiences and lessons of such events for
other regional destinations. Consideration is given to the overall impact of the Rolex race for Maltese tourism;
how the event can be improved to enhance its contribution to Maltese tourism; and what challenges the event
faces in promoting Malta as an “alternative” tourism destination. Conclusions assess the benefits and barriers
for developing maritime events and for sailing and yachting sectors as an alternative tourism option for
Malta. In turn, it provides a specific and unique case that reviews implications for such events and, at a
broader policy context, lessons for developing niche event markets for tourism destinations generally.
Design/methodology/approach – This research focusses upon an inductive approach using qualitative
and case study research methodologies. Secondary data for events management, sports tourism sailing and
yachting and niche market development provide a contextual framework. Primary research is used to collect
qualitative data which are based on purposeful sample selection of interviews from professionals associated
with Maltese maritime industries and key stakeholder groups. The data are analysed through discourse
analysis techniques utilising grid matrices to evaluate and ascertain common themes and responses that
occur from the discussions and questions asked.
Findings – Results point to lessons learnt and future policy directions for the Blue economy and sailing and
yachting as drivers for change. Results show that the RMSR can clearly create opportunities for the
establishment of new innovative tourism markets. In turn, it is also recognised that this can lead to a stronger
sailing and yachting tourism industry not only within Malta but also help regenerate or sustain interest in
maritime traditions and stimulate new opportunities for maritime tourism and broader opportunities for the
growth of the “blue economy” agenda across the region and further afield.
Research limitations/implications – This single case study can be best described as an “exploratory”
study. It deals with how an event is structured, functions and performs particularly within the different
inter-organisational partnerships. In this context, the research deals with the case study of a real-life event
and therefore its academic value may tend to be rather specific and industry focussed. The empirical value of
the enquiry, nonetheless, can provide a platform to draw more general assertions regarding the hosting of
sailing and yachting events and consequences more broadly for events management theory and practice.
Practical implications – Evidence from the research also suggests that sailing and yachting has the
capability of lending itself to many different areas of investment and new business development
opportunities such as overwintering for yachts and corporate business event sponsorships linked to a
growing MICE market. The need to engage with local communities at a local level is also recognised
as a potential for building recognition and skill capacity. This, in turn, can assist local host communities
to familiarise themselves with the discipline of sailing as a life skill simultaneously strengthening
and encouraging maritime tradition and opening opportunities for social development, business and
employment growth.
Social implications – The RMSR demonstrates that such an event can assist local host communities to
familiarise themselves with the discipline of sailing as a life skill simultaneously strengthening and
International Journal of Event and encouraging maritime tradition and opening opportunities for social development, business and employment
Festival Management
Vol. 9 No. 2, 2018 growth. The growth potential of the RMSR is thus broad and, in many ways, may continue to assist Malta in
pp. 204-222 diversifying its traditional tourism markets, capitalising assets, developing opportunity for its local
© Emerald Publishing Limited
1758-2954 communities, encouraging business opportunity and assisting in developing a higher quality tourism focus
DOI 10.1108/IJEFM-09-2017-0055 for the Islands.
Originality/value – Detailed and insightful research on sailing and yachting in Malta remains fairly limited Events and the
and there is little hard evidence to prove the value of such events since there is little available data on
differential spending patterns and little cost/benefit analysis undertaken. The RMSR case provide blue economy
unique research which sets out to explore the role of the RMSR to Malta’s tourism product, identify and
evaluate factors for success, evaluate key contemporary issues and challenges in hosting the event, evaluate
the future potential of such events for Malta’s tourism economy and draw broader benefits and lessons for
hosting events of this nature.
Keywords Events, Malta, Blue economy, Maritime tourism, Rolex, Sailing-yachting
Paper type Case study
205

Introduction – tourism, events and the blue economy


The Mediterranean is the world’s leading tourism destination in terms of international and
domestic tourism with a total of 306m world-wide international tourist arrivals per year. It is
estimated that the region will achieve approximately 10m new arrivals annually until 2030,
creating €215bn in export earnings and, in turn, sustaining a major “pillar” to Mediterranean
economies. Nonetheless, the UNWTO (2012) suggests that the Mediterranean region is
experiencing significant changes to tourist demands with visitors increasingly wanting more
innovative and creative tourist products. According to Royle (2009), it is the Mediterranean
that aptly exemplifies the interactions between tourism and the traditional European holiday
destination. Despite this, however, Briguglio (2007) suggested that although tourism
development has brought many economic benefits unchecked growth, through mass tourism,
has been harmful towards both social and environmental sustainability. These are also
sentiments expressed at an earlier date by Ioannides et al. (2001).
It is such phenomena and notions that are common experiences within the Maltese
islands. Tourism plays a significant part of the Maltese economy today. Tourism now
accounts for over 29 per cent of GNP, 22 per cent of government income and 17 per cent of
full-time employment (Malta Tourism Authority (MTA), 2016). However “mass” tourism in
Malta is not new. It is rooted in the 1970s. Since that time, the Maltese Government has put
increasing priority in re directing tourism policy towards more sustainable alternatives.
The current tourism strategy 2012–2016 (MTA, 2012) and the National Tourism Strategy
2015–2020 (2015) are cases in point. One of the key drivers for change has been interest
expressed in the “Blue Economy” and refocussing direction towards Malta’s past maritime
traditions. It is such concepts that have transcended new tourism thinking in Malta by
refocussing tourism strategies that can be linked to, for example, the “traditional maritime
industries”. This approach primarily focusses on the sustainable use of marine resources
(Times, 2013a, b) and as Sultana (2012) suggests, such marine resources can contribute
towards making Malta an ideal sailing and yachting destination.
The European Union (EU, 2013) has also recognised the potential of the tourist maritime
economy through its “Blue Growth” strategy. This strategy, together with the associated
annual “European Maritime Day” event, explores the potential for coastal and maritime
tourism development across Europe. Such initiatives recognise that several of Europe’s, and
indeed the world’s, coastal regions and cities are now looking to develop marine resources.
As such, bidding to host some of the largest sailing and yacht events is increasingly
recognised as potential for future focus. In this respect, it is now more widely recognised
that events of this nature can attract high-quality tourist markets and offer enhanced
destination image based on sponsorship and media coverage. In turn, they can often work as
a vehicle towards transforming a destination particularly by reviving old maritime cultures,
traditions and infrastructure and help innovate “tired” tourism markets (EU, 2013).
The Rolex Middle Sea Yacht Race (RMSR) is a case in point and an interesting
illustration of ways in which the Maltese authorities have tried to diversify its’ tourist
product. The Rolex race takes place in Malta on an annual basis. The race now forms part of
a number of events and policy measures supported by the Malta Tourism Authority (MTA).
IJEFM These aim to diversify the Maltese tourism economy from reliance on more traditional forms
9,2 of tourism to more specialist or alternative forms based upon sustainable tourism niche
markets including some focus on the “blue economy”. These aim to promote specialist
events and tourism products that are kinder to the environment, offer better community
engagement and provide better prospects for sustainable economic growth (MTA, 2012;
Weed and Bull, 2012). The case provides a unique insight, through in-depth qualitative
206 research, on the benefits and current challenges of the RMSR and how such an event can
help benefit the broader tourist economy. The case also contributes to the broader literature
base on the subject. To date, there is a patchwork of limited, and often dated literature on
sailing and yachting events and the impact they, in turn, have at destinations. Much current
literature focusses on mega events such as the America’s Cup and impacts at prime
destinations such as Sydney, Auckland and Lisbon. The case on Malta primarily concerns
and focusses on a smaller medium scale event – namely, the RMSR – based at a relatively
lesser known destination focussing on Valletta, Malta and Sicily in Italy. The key objective
of the case thus aims to redress and contribute to existing studies and provide a more up to
date local case study on sailing and yachting events. This, in turn, aims to provide new
research evidence which draws broader contemporary conclusions for event management in
practice. It also aims to draw more specific conclusions for the potential consequences of
such developments to smaller scale coastal cities and towns. This is especially the case
for destinations that are currently developing new “blue economy” tourism and event
opportunities for their respective maritime industries and historical maritime traditions.

Sports events, maritime tourism and the blue economy: a blue print for
future change
Today, such events can provide a major platform for tourism development and can help
with the marketing of a destination. In general terms, Getz (2010) highlighted a number of
both positive and negative issues that can be attributed to the staging of major events at
traditional tourism destinations. These are now well documented and can provide a
comprehensive benchmark from which to evaluate future research on events of this nature.
Getz suggests advantages can accrue from, for example, additional economic contributions
to traditional tourism markets, added value towards improving quality within existing
tourism markets as well as increasing competitive advantage. This, in turn, can help
stimulate repeat tourist visits or lengthen duration of stay and help extend the tourist
season and geographic spread to a year-round calendar of activities. Getz also suggests that
events can be used as a catalyst to expand and improve infrastructure, assist towards urban
renewal or economic development of a region and provide host communities with an
increased spirit of pride and community development. This can also help stimulate local
business opportunities, promote investment and job creation and thus encourage longer
term positive economic multiplier effects. These are notions that are also explored by, for
example, Brown and Massey (2001) and Gursoy and Kendall (2006) in their assessments
focussing on sporting event impacts on local tourism destinations. More recently, such
research also focussed on assessing more intangible benefits of sporting events such as
social gain (Heere et al., 2013; Kaplanidou et al., 2012; Misener, 2015), urban regeneration
(Smith, 2012) and the stimulation of sports participation (Craig and Bauman, 2014;
Taks, 2013; Weed et al., 2009; Weed and Bull, 2012).
That said, events also have the capability of adversely impacting on the environment
and social contexts of a tourism destination. Again, Getz (2010) highlights issues such as
overcrowding, pollution, traffic congestion and damage to the natural heritage. He also
suggests that events can often have negative impact by contributing, for example, to
inflated prices and commercial exploitation as well as providing limited skill creation
or providing few long-term job opportunities. In this context, there is sometimes a
misconception of the impact events can have on investment and community experience. Events and the
In some cases, as Getz suggests, this may increase risks associated with loss of traditions or blue economy
authenticity, failure, mismanagement, financial loss or, at worst, cause damage to a
country’s tourist reputation. With regard to specific sporting events, Balduck et al. (2011)
and Preus and Solberg (2006) provide similar salutary warnings. Apostolopoulos’ et al.
(2001), Andriotis’ (2001) and Fernando and Rebollo’s research perhaps provide the context
for some contemporary reflections by suggesting that such market expansion can become 207
more vulnerable to economic “vibrations” and that marine tourism still remains a rather
costly form of leisure activity, therefore attracting relatively small numbers of elite visitors.
Barker et al. (2002) adds to this by suggesting that these issues and the success of hosting
events at tourist destinations can and should be assessed holistically by evaluating benefits
for both public and private gain. Unfortunately, however, literatures relating to events and
the “blue economy” are still not so well documented and research outlined in this paper
based upon a qualitative in-depth study of the RMSR aims to redress such a shortfall.

Sailing and yachting events: a global phenomena – a decade of growth and


success
There are several notable yacht and sailing events that have been established on the
world sporting and tourist event calendar over the last decade. As well as the RMSR and
its counterparts they include, for example, The America’s Cup, The Volvo Ocean Race
(VOR), The ISAF Sailing World Championships and, to a lesser extent, Oman Sail, to name
a few.
Competition for the America’s Cup dates back to 1851, which has made it the world’s
oldest international trophy (Barker et al., 2002). In 2002, evidence from New Zealand
suggested that the economic success of hosting the America’s Cup amounted to NZ$1.3bn
for the nation. This included NZ$85.7m spend on the America’s Cup Village infrastructure
and an income over expenditure of NZ$9m (Barker et al., 2002). Auckland’s opportunity to
host the 2003 America’s Cup was once again heralded as a great success encouraging
New Zealand to focus on special events as part of its tourism development strategies
between 2015 and 2025 (Tourism Industry Association New Zealand, 2015a, b).
Jobson (2012) claimed that the America’s Cup and its associated “opportunities” can,
indeed, go some way to rebrand small host cities such as Auckland and Fremantle where
The America’s Cup can dominate. He also suggests, however, that at larger venues in, for
example, Valencia or San Diego the positive impacts are less clearly defined. Nonetheless,
the America’s Cup has helped capture world-wide audiences, establish new markets and
re-define tourist destinations that were often difficult to brand before the hosting of such
events. To this end, there is much evidence to suggest that exposure the America’s Cup has
created numerous tourism, trade and investment opportunities; has attracted much media
interest; and has contributed towards economic sustainability. The opportunity to capitalise
on the extensive media coverage and market penetration to a global audience was and
still remains a very significant and potent benefit to a hosting destination in this respect
(Barker et al., 2002).
In 1997, the Volvo organisation acquired rights to host the Whitbread Around the World
Race, now renamed the VOR. In 2001–2002, the race hosted eight competing teams with
their respective syndicates spending US$12–20m each (Getz, 2008). The City of Lisbon,
hosts to the VOR, report that the total economic impact of the event in the past has exceeded
€31.5m (Volvo Ocean Race, 2017). The city of Lisbon and the surrounding area of
Cascais have invested heavily in attracting sailing events to the region which now also
include the America’s Cup World Series and the ISAF Sailing World Championships.
The key objective has been to both regenerate the cultural heritage of the city and region,
and to diversify and develop new tourism opportunities and markets (Yacht Racing, 2013).
IJEFM By establishing a reputation for quality and a location that supports sailing and yachting
9,2 the city and region has now established itself as a front runner for future events of this
nature. This, in turn, has helped to build a strong image for Lisbon, Cascais and Portugal as
a place where major sailing and yachting events can be hosted (Arruda and Ferrand, 2007).
These authors also noted that the success of the event can be largely attributed to good
communications between the different stakeholders, inferring that partnership and
208 cooperation was a vital ingredient for success.
A more recent and smaller event, but increasingly growing in stature, has been Oman Sail.
This event began with government funding and is now growing its own commercial
partnerships, and sponsorship sector. It was set up as a precursor to revive Oman’s maritime
heritage while, at the same time, to promote its’ developing specialist tourist industry.
In this respect Oman Sail is now increasingly contributing to Oman’s tourism industry and
has created a much larger awareness of its’ sailing heritage and sailing capital. In this respect,
Fuller (2012a) reported that Oman Sail received an award for its contribution to tourism
development at the WTTC World Tourism Travel Award in 2012. One of the key objectives of
the Oman Sail initiative has been a focus on its’ youth programme. Fuller (2012c) highlighted
that by targeting the youth market, core skills such as sportsmanship, the promotion of active
and healthy lifestyles, leadership, teamwork and communication can be developed.
In turn these can also lead to the development of skills requiring self-discipline, integrity,
honesty, sincerity, humility, courage and flexibility. The aim of the programme remains to
introduce 70,000 Omani youth to sailing by 2020. To this end, the strategy aims to create a
“Sail Arabia” platform from which to develop new tourism opportunities for the country
(Fuller, 2012b).
Evidence from these leading world-wide events illustrate that sailing and yachting
events can positively contribute to a host destination and the development of new tourism
markets in both economic and social contexts. Albeit on differing scales, the cases
illustrate that a good venue with supporting infrastructure and climate are essential
ingredients for success. In short, such events can revive interest in maritime heritage and
maritime cultural values and, in turn, provide a platform to create new tourism business
opportunities. The importance of good connections between different stakeholders would
also seem to be critical in ensuring success. This is evidenced in the case of Cascais where
stakeholder partnership and the development of new infrastructure provided a strong
media and brand image for both the destination and the country. This, in turn,
consolidated the destination as a place to host major sailing and yachting events. It is a
notion and concept that Chalip (2006) supports in his review of how sporting events can
lever economic and social benefits.
Benefits are also seen from hosting larger events such as the America’s Cup and the VOR
where tourism efforts towards developing new business opportunities are quite clear. In this
context, the involvement from large sponsors has significantly enhanced branding and
market penetration and in cases such as Auckland and Freemantle promoted new business
and employment opportunities, new sailing and yacht infrastructures and contributed to
increased investment in each destination’s marine industry.
The accolades of success are thus now quite well defined, although adverse impacts
associated, particularly, with larger events are still evident. Issues such as pressures on a
region’s carrying capacity, infrastructure and threats to general sustainability are still
sometimes evident. Local community engagement and the re-ignition of interest in local
maritime traditions also remain key challenges. Nonetheless, from the cases highlighted,
there is now well-established largely quantitative research that supports the notion that the
hosting sailing and yachting events can bring very positive rewards to both a specific
tourist destination and/or regions. What still remains lacking, however, is more in-depth
qualitative research on specific maritime event outcomes.
Tourism and the maritime economy in Malta – diversifying the tourism market Events and the
The Maltese Archipelago comprises of the largest island Malta, followed by Gozo and blue economy
Comino. In the early 1960s, Malta’s tourism industry mainly catered for the UK holiday
market with as much as 76 per cent of the total tourism market. From the mid-1980s and
1990s, Malta has attracted more than a million tourists, again mainly British during the
summer and autumn season, primarily focussing on the resort/package holiday market.
This established Malta as a traditional Mediterranean package tour destination (sun sand 209
and sea) but, in turn, has increasingly put pressure on Malta’s infrastructure. (Lockhart,
1997; Attard and Hall, 2004). Today, tourism has attained year on year growth (National
Statistics Office Malta, 2016). Arrivals increased from 1.4m visitors in 2012 to over 2+m in
2017, with an expenditure estimated to be above €2bn (MTA, 2016).
The balance between an increase in tourist arrivals and a rise in earnings off-set against
increasing resource pressures, particularly environmental, has increased debate on the
future direction for tourism in Malta. Pollacco (2003, p. 286) illustrated this dilemma by
suggesting that as the one million visitor mark was reached and exceeded, negative
impacts were increasingly evident and suggested that due considerations would have
to be increasingly focussed upon limited growth scenarios in order to ensure long-term
sustainability. The Ministry for Tourism’s (2015) recent National Tourism Strategy
2015–2020 is now focussed on ensuring sustainable growth and has emphasised the
development of tourism based upon cultural, community and resource assets including the
growth of the “blue economy” and associated maritime industries. Such policy statements
have clearly gone some way to both recognise and provide impetus for the development of
sailing and yacht opportunities in Malta which has seen growing support and development
over the last five years. This approach very much “fits” with the EU (2013) Blue Growth
strategy already mentioned in the introduction. Such notions also perhaps seem logical to an
outsider looking at the future direction for Maltese tourism today. Such concepts are,
however, not new ones. The RMSR is a case in point and an interesting illustration of ways
in which the Maltese authorities have tried to diversify its tourist product.

Sailing and yachting in Malta – a growing niche and event market: the RMSR
Detailed and insightful research on sailing and yachting in Malta remains fairly limited, and
there is little hard evidence to prove the value of the sailing and yachting industry since
there are little available Maltese data on differential spending patterns and little cost/benefit
analysis undertaken. However, on a more positive note, sailing and yachting is now fully
recognised as a potential for further growth by both government and the wider tourism and
maritime industries. As an example, a recent report by Borg (2012) estimated that a foreign
yacht owner is likely to spend between €4,000 and 6,000 a week for a 15 to 20-metre vessel
substantially more than a traditional package holiday tourist (UK average €833 per visit)
(MTA, 2016).
The seventh annual conference for “Opportunities in Superyachts” was held in Malta
during March 2017 (Quaynote, 2017). The conference has increasingly recognised the future
growth potential within tourism and the sailing sectors over the last five years. In turn, it
has provided the catalyst for the launch of “Yachting Malta”, a joint partnership between
the Government of Malta and the Royal Malta Yacht Club which has had the prime objective
to promote Malta as a leading destination for the conduct of high profile sailing and
yachting events (Vassallo, 2015). In this respect, economic and tourism policies since 2012
have clearly put sailing on the agenda for growth and established sailing and yachting as a
platform from which to diversify existing tourism markets. With clear support now offered
from both the government and industry, sailing and yachting is now firmly within the
sights of both the public and private sectors in establishing Malta as a prime location for
supporting and the hosting of national and international sailing and yachting events.
IJEFM In this respect, the RMSR has been a growing sailing and yachting fixture on the events
9,2 calendar over the last five-year period.
The forbearer of the RMSR was an offshore regatta started in 1968 between British and
Maltese sailors and immediately saw interest from local and foreign participation. 2002
saw the race’s recognition through sponsorship commitment from Rolex. From this date,
the race formed part of the Rolex Series which brought established international status
210 and, in the first instance, attracted 44 yachts to participate. In 2012, the number of
participants doubled with over 80 yachts, and 5 maxi yachts, originating from 18 different
countries (The Times of Malta, 2012; Royal Malta Yacht Club, 2017a, b). In 2017 the
number exceeded 100 with 22 yachts from over 40 participating countries. The race now
forms part of the world-renowned international Rolex Race Calendar comprising the
“Rolex Sydney-Hobart Yacht Race”, the “Rolex Fastnet Race”, the “Maxi Yacht Rolex
Cup”, the “ISAF Rolex World Sailor of the Year” and the “Giraglia Rolex Cup”.
In this context, Rolex as the high profile official sponsor of the RMSR has contributed
considerably to the increase in popularity of the event. Its world-wide media coverage,
access to extensive media sources varying from some of the best known luxury, lifestyle
and yachting publications and television coverage have been a key contributing factor in
this growth (Regatta News, 2011). The MTA has also shown increased interest and now
hosts a number of media events which go some way to reflect the changing focus of
tourism direction for the islands (Yachting Malta, 2017).
The race consists of a three to four-day circular race starting in the Grand Harbour
Valletta taking a route, across the north coast of Sicily returning to Malta. Despite the
RMSR’s growth, there is still little empirical evidence evaluating outcomes. Past evidence
from other events of this nature reviewed earlier suggest that there may be existing
challenges which relate to infrastructure, marketing, operations, community and funding
(Getz, 2010; Shipway and Fyall, 2012; Balduck et al., 2011; Preuss and Solberg, 2007;
Preus and Solberg, 2006). That said, the event is now a well-established sporting fixture in
the Maltese tourism event calendar. The event also fits well with the MTA’s strategy to
encourage a more diverse and discerning market while focussing on using Malta’s maritime
resources (Plates 1 and 2).

The research context – research design and key research objectives


This research aimed to explore the growth and contribution of the RMSR event to Malta’s
tourism industry and its contribution to Malta’s growing event calendar. The research
objectives of the study set out:
• to explore the role and contribution of the RMSR to Malta’s tourism product;
• to identify and evaluate factors for success;
• to evaluate the key contemporary issues and challenges in hosting the event; and
• to evaluate the future potential of sailing and yachting events for enhancing Malta’s
tourism economy and evaluate broader benefits and lessons for hosting events of this
nature generally.
The research focussed upon an inductive approach using qualitative and case study
research methodologies. In this context, secondary data were used to provide the contextual
background. At a macro level literature relating to event management, sports tourism and
sustainable tourism development linked to sailing and yachting provided the main
“backdrop” or platform for the study. At a micro level, Maltese tourism policy backgrounds
and niche market based upon events development specifically in sailing and yachting
provided a more focussed framework. In addition to this, primary research was used to
Events and the
blue economy

211

Plate 1.
RMSR 2016 – Birgu-
Grand Harbour
Marina: Start
of Race 2016

collect qualitative data which was based on purposeful sample selection of interviews from
race participants and key stakeholder groups associated with the RMSR. It is this in-depth
qualitative research approach which has aimed to give a unique insight into a maritime
event of this nature. The focus on data collection using a variety of sources from key
stakeholders associated with the event has given some unique insights and personal
reflections on the event outcomes in terms of both successes and shortfalls. In turn, this has
provided a unique discourse on lessons that can and may be learnt from the hosting of
events such as the RMSR and the wider prospects for sailing and yachting as “added value”
for event and tourism destination management.
In all, 33 interviews were conducted with key stakeholders from key sectors. These
included: race participants (captains of participating yachts – members of yacht crews,
hosts); organisers (dignitaries and organisers – representatives from Royal Malta Yacht
Club – Yachting Malta, Malta Transport); sponsors (representative from Middlesea
Insurance, Malta Tourist Authority, Grand Harbour Marina, Camper Nichols Marinas,
Rolex); municipalities (political representatives and community/neighbourhood/band
club/local church groups from Birgu, Senglea, Kalkara, Cospicua, Valletta and Floriana);
tourism and hospitality sectors (Valletta hotels – Phoenicia, Excelsior, Malta Hotels and
Restaurant Association MHRA, Ministry for Tourism, Malta Tourism Association, local
café, retail and restaurateurs, Malta Tourism Society, tourists and race observers);
local sport groups and youth clubs (Birgu sailing, Senglea Community Youth club); local
maritime industries (boat chandleries, local dock enterprises, Grand Harbour Marina); and
environmental groups (Din’lart Helwa, FFA, Heritage Malta). The variety and diversity of
stakeholders selected aimed to provide a unique and diverse representation of broad
opinion in order to seek answers to the research questions and research objectives set.
The data were analysed through discourse analysis techniques utilising grid matrices to
evaluate and ascertain common themes and responses that occurred from the discussions
IJEFM
9,2

212

Plate 2.
RMSR 2017 – Valletta-
Grand Harbour: Start
of Race 2017

and questions asked. The results aimed to provide unique data and illustrate what general
critical issues can arise from hosting an event of this nature – the positive impacts and
negative outcomes. In turn, the research aimed to purport recommendations that can be
adopted in order that the RMSR and other similar events can be improved for the future
development and encouragement of diversified tourist destinations and economies.
The research area best dictates the methodology and, in this case, an inductive Events and the
qualitative method was deemed to be the most suitable since the purpose of the study blue economy
was to explore and provide an in-depth analysis of the research subject based on the
research objectives set. This single case study can be best described as an “exploratory”
study. It deals with how an event is structured, functions and performs particularly within
the different inter-organisational partnerships. In this context the research deals with the
case study of a real-life event and therefore its academic value may tend to be rather 213
specific and industry focussed. The empirical value of the research, based upon unique
personal reflections from a diverse selection of key stakeholder groups, nonetheless, can
provide a platform to draw more general assertions regarding the hosting of sailing
and yachting events and consequences more broadly for the events management theory
and practice.

Research outcomes: the RMSR event – key findings and discussion


RMSR’s contribution to tourism in Malta
The initial aim of the research was directed towards exploring the role of the RMSR as part
of Malta’s tourism product. The findings from the research demonstrated some interesting
relationships between the results, stakeholders and the existing literature. Although Getz
(2010) and Balduck et al. (2011) highlight a number of adverse impacts events can generate,
evidence from the research confirms a very positive image from stakeholders engaged
with this event with few negative influences or impacts associated, particularly with
environmental, social or cultural contexts, being reported. All municipalities and key
organisers engaged with event activities reported positive feedback in terms of economic
and environmental benefits. Yachting Malta, and MTA and the Mayor of Birgu were
particularly keen advocates in this respect. These assertions generally confirm sentiments
and claims of positive impact advocated by, for example, Heere et al. (2013) and Taks (2013).
The RMSR clearly demonstrates that there is a strong synergy between the success of the
event and the location of the event destination, thus supporting Fernando and Rebollo’s
assertions. As a consequence, Malta has attracted an increasing overseas sailing and
yachting fraternity and today continues to established itself as a maritime hub and a
popular destination to host sailing events. Race participants, observers and visitors for the
event were keen advocates in supporting such notions.
The growth of this market with new events such as the “RC44 Valletta Cup”, now in its
11th year of competition (RC44, 2016), or the “Trophee Bailli de Suffren” Yacht Race between
St Tropez and Malta, are now firmly established sailing and yachting calendar events.
This has stimulated increasing interest in the industry and has precipitated further
investment in new infrastructure, waterfront regeneration (particularly in Valletta and the
Three Cities) and new marina developments with a proposal now underway for a new marina
at SA Maison on Valletta’s northern shoreline and Mgarr on Gozo (The Times of Malta, 2013b;
Jones, 2016; Yachting Malta, 2017; Schembri, 2017). Again, the local municipalities and
government agencies remained positive supporters and backers of such a vision in this
respect, although representatives from church and youth groups expressed a need to ensure
that benefits of the RMSR “filtered down” to all parts of the community.
Although there is a gap in assessing exact tourist figures, i.e. total expenditures and total
number of visits generated for such events, the hosting of these events occur out of the main
tourism seasons which, in this respect, has gone some way to contribute to extending the
visitor season and alternative tourist activities during shoulder months. The hotel and
restaurants associations and representatives from the tourism and hospitality sectors saw this
as a particular benefit and one which could be capitalised upon with the promotion and growth
of such events in the future. In this respect, the concept of developing an alternative “blue
economy” (despite the notion remaining a little ambiguous to many stakeholders) has also
IJEFM contributed to strengthening the focus drive and recognition of sailing and yachting
9,2 as a means to further develop maritime niche tourism markets. Again, representatives from the
maritime industries, sailing clubs and marina operations were very supportive here.
The signing of a joint declaration on the blue economy for the Mediterranean by the European
Commission in November 2015 and the establishment of “Yachting Malta”, supported by the
Maltese Government, was recognised as providing a further impetus for sailing and
214 yachting development and associated maritime tourism for the Islands (European Commission,
2012, 2015). This was again perceived as a firm strategy supported and positively promoted by
both government and municipal authority stakeholders in Malta.
The RMSR has clearly placed Malta at the top of the international yacht racing agenda.
Evidence of its value within a local context has been substantially positive, thus
confirming sentiments expressed, for example, by Gursoy and Kendall (2006) and Brown
and Massey (2001). Despite this however, the RMSR has, nevertheless, yet to establish
whether the event truly meets criteria that is focussed on developing sustainable tourism
outcomes as suggested by Andriotis (2001). In this context, there was some disquiet
expressed from local community and church groups on the “perceived value” of the RMSR
to local areas, particularly relating to jobs and “gentrification” issues and challenges.
That said, the outcomes from interviews generally very much support notions explored
within the literature on the hosting of events of this nature and the positives that can
accrue from such. Evidence from all sectors of the stakeholders interviewed also confirm
that the RMSR can, indeed, transform a traditional tourism destination and provide an
international platform from which to diversify and rebrand local destination image and
stimulate an alternative tourist economy. Hosts, government agencies, participants,
municipalities and hospitality sectors all expressed similar sentiments. These are also
points supported by, for example, Fernando and Rebollo, Arruda and Ferrand (2007),
Barker et al. (2002) and Jobson (2012).
Getz (2008) and Gursoy and Kendall (2006) also outlined a number of factors that
contribute to the success of events. Results from research on the RMSR event suggest
that both government backing and local support together with Rolex’s reputation and
international sponsorship has given the race an “iconic” status, transforming it from a local
event into one of the world’s top sailing and yacht events attracting some of the most
professional names in yachting. Malta Royal Yacht Marina, Grand Harbour Marina and
Yachting Malta all expressed this as a significant and important factor in the sustainability
of the event, albeit, also one of its key threats. In this context, co-branding the race as
part of the Rolex Series has also seen the increasing popularity of the event. However,
vulnerability relating to over reliance on one key sponsor was an issue expressed from the
environmental and hospitality stakeholder sectors. Nonetheless, positive feedback from
stakeholders on the RMSR and on similar events hosted in Malta together with the extensive
coverage of Rolex’s media network suggests that the event has contributed significantly
towards reaching new global markets for Malta. For example, new markets focussed on
Russia, Eastern Europe, Eastern Mediterranean and the Middle East were explicitly
suggested. In this respect, the ease of transport and communication (i.e. Air Malta’s regular
flight schedule and new “low-cost” routings) has helped grow these new markets and helped
provide a platform from which to exploit new market penetration. The Maltese Tourism
Authority expressed that it now recognised sailing and yachting as a new growth agenda
with significant opportunity to grow and develop such new markets. These are sentiments
clearly supported by, for example, Barker et al. (2002), who support notions that the success
of events are largely tied to sponsorship and brand association. Clearly international
sponsorship, association with world class branding and marketing and ease of access have
been key contributory factors for success. The location, access and the suitability of the
maritime environment and agreeable climate linked to adequate infrastructure are also
key factors. These were particular sentiments expressed from the race sponsors, race Events and the
participants and yacht crews and race observers who saw these concepts as fundamental blue economy
for continued growth and success.

Issues and challenges in hosting the event


Despite the very positive growth demonstrated by the RMSR over the last five years,
feedback from stakeholders suggests that the transition and growth of the event from a 215
local event to a top international venue may not have been as fully recognised or
understood by key sectors of the tourism industry in Malta. Hosts and the key event
participants and sponsors were particularly critical of government and municipal
institutions although the establishment of “Yachting Malta” was welcomed in this respect.
Again, Arruda and Ferrand’s (2007) and Chalip’s (2006) sentiments remain pertinent with
regard for the need to ensure integrated collaboration and partnership. In this context,
there were a number of local venue shortfalls that were identified which largely related to
operational issues (highlighted by the event organisers), organisational issues
(highlighted by sponsors, event organisers and local municipalities) and community
issues (highlighted by community representatives). The research highlighted some
shortfalls in the recognition, visibility and value of the event. In this respect, key local
tourism stakeholders, particularly from the hospitality, destination management and
accommodation sectors often demonstrated a lack of awareness about the event, its
potential value or how this could contribute to a stronger tourism product for the locality.
Hotel chains were particularly unaware and ignorant in this respect, thus demonstrating
future potential to develop better partnerships and collaboration between key stakeholder
groups. Collaborative partnership was a key criterion highlighted in the Cascais event
(Arruda and Ferrand, 2007), and lessons would suggest future success could be enhanced
by instilling awareness amongst local tourism stakeholders. This, in turn, would help
strengthen the contribution of RMSR tor the Maltese tourist economy and particularly for
its growing maritime tourism markets. These were sentiments explicitly mentioned by the
event sponsors, organisers and event observers.
Other issues raised were related to infrastructure shortfalls which identified a shortage
of appropriate berthing facilities for all participating yacht types thus, inconveniently,
causing some yachts having to berth across the islands. Sponsors, yacht crews and yacht
captains expressed most criticism here. Issues associated with wider publicity and
recognising the value of the event for local stakeholders were also raised and still
obviously remain a significant challenge for the future organisation of the RMSR event.
Again, hospitality sectors, event organisers together with marina operations and boating
operations/ handleries expressed a number of critical comments on this issue. Tensions
associated with guest and visitor experience particularly associated with expectations of
the quality and hospitality offered also remain contentious issues. Yacht crews, event
participants, event observers and visitors participating in event activities voiced
some disquiet, and made specific reference to the “patch work” of quality in the general
“tourist offer” and the need to upgrade facilities. In this context, several inadequacies, in
infrastructure, food, accommodation, “hospitality welcome” and event organisation
were identified which pose future challenges for the Maltese hospitality industry
in hosting and raising standards for an internationally recognised quality event of this
nature. These are notions also explored and confirmed by Balduck et al. (2011) and
Ioannides and Holcomb (2001).
At a government level, despite ministry rhetoric in support of sailing and yachting and
supporting the development of the broader “Blue Economy” (Parliamentary Secretary for
Competitiveness, 2014), evidence from the interviews suggests that support from
government and MTA remains marginal or very much a fringe activity with little
IJEFM promotion or awareness of the value such an event can potentially have for Maltese tourism.
9,2 This was a notion particularly expressed from event organisers, event participants,
sponsors and the hospitality sectors. In turn, the limited engagement of the local host
community within the locality of the event (Valletta waterfront and the three cities – Birgu,
Senglea and Cospicua) were identified as a potential negative or alternatively, perhaps, a
potential opportunity. In this respect Getz (2008) and Smith (2012) suggest that engaging
216 local communities can stimulate local business opportunities firmly planting inextricable
links between the event and community and wider urban regeneration objectives. In this
context, main criticisms of the RMSR event came from within the local municipalities.
Although recognising its generic value, both local municipalities and community
representatives remained somewhat wary of the event. This was principally with regard
to its’ local economic and community benefit and local price escalations and concerns
for building developments associated with “gentrification”. Notions of “us and them” were
clearly expressed in this context. Getting such a balance right was perceived as an
important end goal but largely remained a polarised attitude between representatives of the
local municipalities and RMSR event organisers. This would appear to be a clear challenge
for the future of the event in the short to medium term.

The future potential of sailing and yachting events for enhancing Malta’s tourism market
As Borg (2012) reflects, the early days of the RMSR were important in establishing the
value of the race and providing stimulus for further investment in sailing and yachting as
a tourism activity. As such, the ability to attract sailing events has increased substantially
over the decade, which has provided a platform from which to strengthen and exploit
opportunities to develop Malta’s maritime economy, maritime culture and maritime
tourism. This, as representatives from Maltese government agencies confirm, has also
provided an impetus to update and innovate existing maritime infrastructure such as
marina developments and associated hotel development. In turn, this has also stimulated a
drive and effort to improve the overall quality of the tourism product offered across all
hospitality and tourism related sectors. Again, representatives from most Maltese
hospitality sectors recognised a need for this. That said, engagement with the key tourism
stakeholders and community at large still requires further effort but one that is
increasingly recognised as desired and needed. This was again reflected in the positive
interviews across all stakeholder groups with keen support and desired positive solutions
sort by for example, event organisers, event participants, event observers, Maltese
hospitality sectors, local communities and government agencies alike. Clearly, once such
fundamentals are agreed and in place opportunities should indeed support and strengthen
initiatives for further investment and potential growth for the sailing and yachting sectors
in Malta.
Evidence from the research also suggests that sailing and yachting has the capability of
lending itself to many different areas of investment and new business development
opportunities such as overwintering for yachts and corporate business event sponsorships
linked to a growing MICE market. Marina operations and industries associated with boat
chandleries expressed most optimism here. The need to engage with local communities at a
local level is also recognised as a potential for building recognition and skill capacity.
Local community and church groups as well as the general yachting “fraternity” saw
potential here for collaboration and further engagement. These are sentiments also
expressed and confirmed by authors such as Heere et al. (2013), Misener (2015) and
Smith (2014). The 2012–2016 Tourism Policy (MTA, 2012) who see such collaborations an
indicator of a possible way forward by encouraging sailing academies to form part of the
event. This, in effect, can assist local host communities to familiarise themselves with
the discipline of sailing as a life skill simultaneously strengthening and encouraging
maritime tradition and opening opportunities for social development, business and Events and the
employment growth within the local community. Municipalities and community groups, blue economy
although receptive and positive, saw further need for assistance and support in order to
facilitate such actions and capacity building.
The growth potential of the RMSR, despite caveats raised, are thus broad but largely
remain positive. In many ways, events such as the RMSR would appear to assist Malta
and its associated tourism industry in diversifying its traditional tourism markets, 217
capitalising assets, developing opportunity for its local communities, encouraging
business opportunity and assisting in developing a higher quality tourism focus for the
islands (Figures 1 and 2).

Conclusion – the future for sailing and yachting events


The RMSR has contributed significantly towards the requirements specified by the
2012–2016 Tourism Policy (MTA, 2012) directed at attracting quality niche markets. In this
respect, the RMSR event is now firmly established on the sporting calendar of events and
has provided an impetus for broadening, diversifying and improving existing tourism
operations and products.
The RMSR event has offered Malta the opportunity to diversify its tourism markets and
assist in reviving its maritime traditions whilst utilising local skills and existing
infrastructure. As such, the development of the sailing and yachting industry has offered a
number of additional avenues for business tourism development. In this respect, the event
has encouraged local community engagement through the establishment of sailing
academies which, in turn, has offered new business opportunities. In a broader sense, the
RMSR has also helped to contribute towards developing the sailing and yachting industries
and broader maritime sectors and thus helped in transforming not only perceptions of a

Opportunity
to revive
maritime
heritage Uniqueness and
Infrastructure
brand
investment
potential

Tourism
Sports credibility.
development Rolex Brand =
Quality

POSITIVES
Revisits – new
Youth and tourism
community economies –
development new demand
off season
Spin off : New
‘Blue Economy – New
business international
charters, markets – e.g
overwintering, MICE tourism Russia
marinas, sailing enquiries
Figure 1.
The positives
IJEFM
Gentrification:
9,2 The removal of
traditional
working and
Vulnerability of living Strategic dis-
“Roller Coaster” waterfront
co-ordination
Economics practices
218
All pervasive –
Perceived low institutional
quality of dominance of
hospitality “mass tourism
services ethos”
NEGATIVES
Depleted
maritime The loss of
culture to waterfront
support new character
markets

Poor quality of Stakeholder


infrastructure malaise
Fragmented
stakeholders
Figure 2.
The negatives

changing tourism industry but assisting in realising effective change. The research also
highlighted some shortfalls and challenges particularly in the organisation of an event of
this nature. These were largely attributed to limited stakeholder engagement, gaps in
infrastructure, problems with quality and hospitality and limitations with community
engagement. Nevertheless, clearly, the hosting of the RMSR in Malta has offered both very
tangible and broaderless tangible benefits to the tourism economy of Malta.
The RMSR event has also raised a number of broader strategic challenges and issues
that perhaps question measurable outcomes and strategic contributions. In this respect,
Fernando and Rebollo’s predictions that marine tourism still remains a rather costly form of
leisure and therefore attracts relatively small numbers of elite visitors or Barker’s et al.
(2002) assertion that the success of hosting events at tourist destinations should
be assessed from the perspective of their benefits against public and private gain remain
very pertinent.
The tensions between “quality” and “elite” set against tourism markets that largely
promote and rely upon “low cost” “traditional package” type tourism holidays remain key
issues for tourism policy and strategy. A tourism industry that is supported, by over two
million annual visitors, the majority of whom come via traditional package holidays is a
case in point. In this respect, the development and sailing and yachting events can only go
some way in assisting with the diversification of tourism markets and is thus limited in
this context. Tensions associated with corporate sponsorship, high-end marketing and
brand image promotion and how these are juxtaposed against the continued ethos
of mass tourism, concepts of local community or bottom-up approaches to tourism
development or community engagement are again difficult notions and concepts to
reconcile. These are indeed ideas raised by Ioannides and Holcomb (2001), in their
earlier assessment of the growth of “upmarket” tourism in the Mediterranea., but are also
pertinent sentiments today.
Despite such notions, the general consensus from all the interviews confirmed that the Events and the
RMSR event contributed a very positive image for Malta. Operational issues and warnings blue economy
from, for example, Getz, 2008, 2010) and Balduck et al. (2011) on potential adverse impacts
have largely been off-set by the recognition that an event, such as the RMSR, can clearly
create opportunities for the establishment of new innovative tourism markets. In turn, it is
also recognised that this can lead to a stronger sailing and yachting tourism industry not
only within Malta but also help regenerate or sustain interest in maritime traditions and 219
stimulate new opportunities for maritime tourism and broader opportunities for the growth
of the “blue economy” agenda across the region and further afield. As such, these are
notions and concepts that can deliver lessons to newly developing maritime destinations.
Not the “mega city - mega event” destinations that sailing and yachting events have usually
been historically attributed to, but for lesser and smaller scale coastal and maritime tourism
destinations that have growing aspirations for developing their respective “blue economy
traditions and infrastructure”. This, in turn, can also assist with the diversification of
their respective current tourism configuration and structures and help provide possible
alternative pathways and futures for tourism development.

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Further reading
Kaplanidou, K., Karadakis, K., Gibson, H., Thapa, B., Walker, M., Geldhuys, S. and Coetzee, W. (2013),
“Quality of life, event impacts, and mega event support among South African residents
before and after the 2010 FIFA World Cup”, Journal of Travel Research, Vol. 52 No. 2,
pp. 631-645.
Veal, A.J. (2006), Research Methods for Leisure and Tourism, Pearson Education, London.
Ziakas, V. (2014), Event Portfolio Planning and Management: A Holistic Approach, Routledge, London.

Corresponding author
Andrew Jones can be contacted at: andrew.jones@um.edu.mt

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