Professional Documents
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Events and The Blue Economy
Events and The Blue Economy
www.emeraldinsight.com/1758-2954.htm
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
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 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).
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.
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).
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
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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