Despite considerable improvements in hotel occupancy levels shown in the results of a survey released yesterday, the president of the Malta Hotels and Restaurants Association warned that “there still remains a lot of work to be done by all involved… we must collectively push for further growth in tourist arrivals”.
Commenting on the results of the BOV MHRA Hotel Survey by Deloitte at the Hotel Phoenicia in Floriana, MHRA president Josef Formosa Gauci said: The positive results achieved this quarter must not make us complacent.
“We still have to work harder and we must be careful not to underplay the significance and potential negative implications of a steadily shortening average length of stay, which is resulting in a lower level of guest nights, as well as a rather worrying decline in arrivals from the important German and French markets, and the Benelux countries.”
The survey showed that there was an increase in occupancy levels for all hotel categories. Five-star properties registered a 77 per cent occupancy level compared to 70 per cent last year. Occupancy rates in four-star hotels increased by one per cent (from 76 to 77 per cent), while occupancy levels in three-star hotels increased from 65 to 70 per cent.
All hotel categories achieved a better Average Achieved Room Rate (AARR), which relates to accommodation income divided by the number of room nights sold. Both on a quarterly and on a year-to-date basis, all categories reported the highest AARR achieved over the past six years.
As a result of the improved occupancy levels and the higher room rates achieved, all hotel categories reported improved Gross Operating Profits, which were also the highest in the past six years.
Dr Formosa Gauci said he was encouraged by the results of the survey since they confirmed that the collective efforts of all involved in the tourism industry were translating into higher tourist arrivals, improved hotel occupancy levels, higher levels of tourist expenditure and improved hotel room rates.
“Although the initial battle of reversing the negative slide in arrivals has apparently been won, we stress that the ‘war is far from over’. There are clearly still a number of major challenges to face up to if we are to achieve long-term sustainable profitable growth in tourism,” he said.
He said it was important to remain “on top” of the situation by continually reassessing the effectiveness and validity of strategies and decisions in light of the continually changing international tourism trends and circumstances.
The BOV MHRA Hotel Survey by Deloitte is an industry initiative sponsored by Bank of Valletta p.l.c. and is open to all hotels. It is compiled independently by Deloitte and is the only survey that analyses trends in detail all the way from income to operating profits.
50 hotels participated in this year’s survey, which covered 9,015 rooms and Lm26.6 million / EUR62 million in revenues. The next survey will cover the third quarter of this year. Hotel owners wishing to receive a full copy of the survey report and are prepared to start participating in future hotel surveys, are invited to send an email to mhrasurvey@ deloitte.com.mt.