The first half of the year has been a positive one for hotels, with all categories recording higher room occupancies and profits when compared to 2013, according to a survey commissioned by the Malta Hotels and Restaurants Association.

The results of the survey, which is carried out on MHRA’s behalf by Deloitte every quarter and whose latest edition was presented this afternoon, reflect official tourist figures, which show that the number of inbound tourists between January and June was 8.7% higher than the corresponding period in the previous year, while the number of guest nights increased by 7.2% on account of a shorter average length of stay.

But MHRA council member Julian Diacono (right), who delivered a presentation on the current bookings scenario, cautioned that there was not only good news.

He noted how tourist figures for July – the latest published by the National Statistics Office – show that while the number of tourists increased by 9.7% when compared to July 2013, this reflected an 11.3% increase in the number of tourists seeking private accommodation. The number of tourists in collective accommodation, including hotels, actually fell by 7.1%.

This had not been the case in the first six months of the year, even though the increase in the number of tourists seeking private accommodation (13.2%) was still considerably higher than the number of those in collective accommodation (4.7%).

All hotel categories registered a higher occupancy rate when compared to 2013. The occupancy rate increased by 3.6 percentage points to 67% in 5-star hotels, by 1.2pp to 73.5% in 4-star hotels, and by 4pp to 64% in 3-star hotels.

Average achieved room rates increased by 5.7% in 5-star hotels and by 6.9% in 4-star hotels, but decreased by 3.7% in 3-star hotels. However, a higher occupancy rate meant that even 3-star hotels recorded increased revenues and profits.

Five-star hotels saw their revenue per available room (RevPAR) increase by 8.2% to €116.60, and their gross operating profit per room (GOPAR) over six months consequently increased by 17.6% to €4,638. RevPar increased by 7.1% to €57.40 in 4-star hotels, and their GOPAR increased by 12.3% to €2,405.

RevPAR in 3-star hotels increased by a more modest 3.1% to €25.80. GOPAR in this category actually increased by 105.9% to reach €243, but this steep increase primarily reflects the relatively low profit levels in the 3-star sector.

The bookings scenario, however, proved to be more of a mixed bag.

Five-star and 4-star hotels reported increased bookings for August to November when compared to 2013, with 5-star hotels registering a stronger increase. But 3-star hotels saw their bookings drop in all four months.

Mr Diacono concluded that various factors – including overall tourist arrivals, flight capacities and increased tourist expenditure – were positive.

But he added the apparent shift to private accommodation, a reduction in the average length of stay the drop of bookings in the 3-star category and the drop in per capita tourist expenditure were a cause for concern.