Malta has, like every other country in Europe, experienced a drop in the amount of tourists since the recession began to bite towards the end of last year.

The fact that we have compared well against our competitors is already known. Make no mistake, there was a drop, but nowhere near the 16 and 18 per cent drop figures which have been registered in some places.

Some interesting figures have also emerged. While Malta has experienced a drop in arrivals over the past year or so, inexplicably, although we are technically in recession, almost the same number of Maltese took holidays abroad in August 2009 as they did in August 2008.

Moreover, if one had to look beyond the non-resident figures, one would notice that Maltese internal ‘tourism’ (i.e. weekend hotel breaks or Gozo breaks) is increasing. What is increasingly surprising is that all star sectors saw an increase of Maltese tourists.

But what can be deduced from these figures? It seems that while certain sectors of society can still afford a holiday abroad, the recession seems to have pushed local prices down, allowing people to book local breaks.

The 4- and 5-star sectors, the latter in particular also fared well with international visitors. All this was at the expense of the lower star levels of accommodation. How? One may ask. The answer is simple, the 5-star sector has reduced its rates to those of 4-star accommodation to continue to attract foreign visitors. This ties in with the data on Maltese enjoying internal holidays. But of course, this is at the expense of the 4-star and in turn 3- and 2-star properties.

This has to be put into an international context. In Malta, while rates have been cut substantially, they were still the second lowest cut within the 27-nation EU bloc.

So, all in all the situation is becoming clearer. Five star hotel properties are doing well because they have invested in their product and can have the luxury of chopping rates in return for a good holiday stay.

Can the same be said for 2- and 3-star properties? These properties claim that they cannot reduce rates further because they would become loss making. Fine. One can understand where they are coming from. But what are these properties offering in return? Many are still sold at inflated tour operator prices and instead of perhaps brushing up their act and offering better service, many are content to sit on their hands and do nothing while the recession’s ugly head is still present.

This is not the way to go about things. If these lower end properties do not cut rates, there are other things they can do. The first thing should be to club together and put together a website where potential visitors can enter a hub and book directly into one of the many 2- or 3-star properties.

The second is offering value to the customer. If one pays X to stay in a 5-star hotel and gets so much, what is a tourist going to think if they get about the same treatment in a 3-star property for X-not that much less?

It is pretty clear. These properties must pull their socks up and come up with a way to continue to attract business while the recession is here (and of course after it leaves).

On a closing note, price wars never did anyone any good. Tourist industries are already going under as a result in other countries. We certainly should watch our step.