Based on the data collected from hotels, and other stakeholders, the number of tourist arrivals for the year 2023 “promises to surpass the previous 2019 record”, the Malta Hotels and Restaurants Association (MHRA) observed while presenting the results of a survey.
Michael Zarb, Deloitte Director, Economic and Policy Advisory, spoke during the event which saw the presentation of the Deloitte-BOV Quarter 2 - 2023 Performance Review for Hotels. He said that Q2 was undoubtably very positive for Malta's hotel sector - benefiting all hotels in the sample, irrespective size, age, and location. Zarb said that "unless demand weakens during the rest of the year, we appear on track to reach or even exceed 2019 levels."
He explained that over 840,000 tourists visited Malta in Q2 of this year, a new record which surpasses the 2019 arrivals by nearly 59,000. He added that there were more flights than 2019, as well as the flights being more full.
Tourism spend overall is expected to have reached €663 million, which is 9% higher number than the equivalent period of 2019. Accommodation expenditure is expected to be the largest increase.
Zarb said that occupancy in all collective accommodation during Q2 maintained the strong results experienced during Q1, with an overall average of 86.8% from the surveyed hotels across the Maltese islands. Compared to 2019, five star, four star, and three star hotels all saw an increase in occupancy with 78.3%, 89%, and 93.4% respectively. The average daily rates of hotels also saw a noticeable increase. Five star, four star, and three star hotels reported average daily rates of €207.60, €106.50, and €72.20 respectively. With corresponding increases of 18%, 10.1%, and 35.4% compared to the same quarter of 2019.
Zarb also remarked that sustainability however remains an open question. With reference to the Carrying Capacity Study for Tourism in the Maltese Islands commissioned by MHRA and published in September 2022, Zarb stated that it revealed multiple areas of stress in the overall product. "The key concern here is that, without investments to better deal with higher volumes, Malta's market positioning might decline, requiring ever higher volumes, and a larger environmental and societal footprint, to sustain the existing economic and financial performance."
MHRA President Tony Zahra said that the overall results being achieved this year by hotels were positive, and emphasised that such results should not be taken for granted, whilst reminding all the importance of the tourism sector to the Maltese economy. He praised the industry for its resiliency, and said that this year it has produced €2.5 billion in revenue. The tourism sector accounts for approximately 20% of employment in Malta, he said.
Zahra referred to the challenges being faced by MHRA members not only those related to an increase in costs, but significantly those related to the sustainability of the results being achieved to-date.
Zahra emphasised that to become future proof "we now need to all together - government along with the private sector - steer initiatives towards sustainable objectives. "
"Given the size of our country we must now concentrate on doing things better not bigger! We must have a better tourism product and a better hospitality service; better infrastructure including roads, energy, and wastewater management; better governance; better education and access to culture for all; better environment and cleaner surroundings; better management of our population and working force; making Malta a better experience for all - for those who live in it and for those who visit it," Zahra said.
"One can always find someone who can do it cheaper, but it gets much more difficult when one does it better. So, we need better and more clever investment both by the public sector and the private sector, but equally important better and more clever management on all fronts."
Zahra emphasised that the collective aim should be that to become futureproof, and the only way to do it is to focus on doing things better on all fronts.