Some people had said that the future of the three-star hotel industry was close to collapse only a few years ago.

Yet, in the remarkable turnaround that has come about in our tourism industry, it seems that the three-star sector outperformed both the four and five-star categories in terms of occupancy rates in Q3 this year. The results were made available by the Malta Hotels and Restaurants Association.

Five-star hotels registered 89.6 per cent occupancy compared to 81.4 per cent in 2006. The lower 4-star category also registered an increase to 94.3 per cent in Q3 2007 compared to 88.9 per cent in 2006. Three-star hotels saw the biggest increase in occupancy levels from 80.1 per cent in 2006 to 93.8 per cent in 2007. This is all very encouraging, especially taking into account the fact that tourist arrivals were up over 2006 by 11.9 per cent, guest nights were up 6.3 per cent and tourist expenditure also up by 7.6 per cent.

In fact, taking the three key indicators on a year to year basis, tourist arrivals were up by nine per cent over 2006 while guest nights were up 1.4 per cent. Tourist expenditure was up by 5.7 per cent. Strong increases were also registered in the core markets of the UK (17.7 per cent), France (17.2 per cent) and Germany (4.4 per cent). Increases were also registered from Ireland (31.4 per cent), Scandinavia (11.5 per cent). These results could be attributed to the operations of new low cost carriers that have increased the routes which service Malta.

Indeed, MHRA President Joseph Formosa Gauci said that the results of Q3 and the year to date were very positive, but warned that we should not rest on our laurels. He did also say that the recovery itself showed that the Maltese tourism industry was built on solid foundations and that it if supported by correct strategic decisions, has the ability to bounce back and succeed.

Evidently, from the recovery registered, this is true and it is also heartening to know that the central administration is supporting this recovery by launching into an intensive programme to diversify and improve the tourism product.

One of the latest set of projects to be announced is the complete upgrade and regeneration of the Marsamxett Harbour area. This will complement the development which is taking place within the Grand Harbour and is mostly targeted towards improving the cruise liner industry. We have learned that there are plans for an additional five quays and the transformation of Fort St Elmo into a new Cruise Liner Terminal.

Moreover, the government is banking on turning the harbour into an all-year one through the construction of a breakwater. This will allow for the placement of a large number of mixed use marinas, which will all be complemented with various new projects ranging from theatres to water parks, heritage walks and much more. These projects will serve to upgrade the whole tourism package these islands have to offer and will especially make the most out of Valletta, which is after all the Capital City and one of the main tourist attractions which we have on offer.

While all these results show that we may have turned the corner, we cannot afford to be complacent. Complacency will cost us dearly in what has become a very dynamic market based on trends. If we sit back for one minute and expect tourist bookings to continue to flood in, we will once again head on a downward spiral. We have done it before and we should learn from our mistakes. There is no such thing as a free lunch.