Malta Hotels and Restaurants Association (MHRA) president Tony Zahra has dismissed the idea of limiting the number of tourist arrivals, arguing that management, not limitations, is the key to sustaining the industry.

Zahra was asked for his comments by The Malta Independent on Sunday after statistics issued by the National Statistics Office last Monday showed a steady jump in the number of tourist arrivals in January, signifying that the growth trend observed since the end of the Covid-19 crisis and which peaked in 2024, is likely to continue this year.

The sharp increase in the number of tourists visiting Malta has raised concerns of overtourism, with the country already struggling beneath the weight of an unprecedented growth in population, mostly of foreigners settling in the country. Pressure on the infrastructure - meaning roads, traffic, construction, energy, waste, water and sewage - has grown exponentially in the past decade or so.

The NSO last Monday reported that inbound tourism to Malta in January increased by 12.6% compared to the same period in 2024. The total number of inbound tourists for the month was estimated at 194,157.

Last year, a record 3.56 million tourists visited the country, a jump of over 500,000 people when compared to 2023, or a nearly 20% increase.

In his comments to this media house, Zahra called for a strategic approach to managing the situation better, rather than limit the numbers.

Zahra emphasised that the concept of overtourism is often misunderstood. "There is no such thing as overtourism," Zahra said, emphasising how tourism must be managed and not limited; how it is not about reducing numbers but ensuring that they are well-managed, and that infrastructure can accommodate growth. He pointed out that the key to successful tourism management lies in addressing bottlenecks, which are areas where demand exceeds the capacity of local services.

In comments that this newspaper had obtained last year from Prof. Lino Briguglio, the economist had said that Malta has already exceeded its carrying capacity in terms of tourism numbers. He gave the example of three cruise ships (A, B & C), each with their own carrying capacity. Ship A remains within its limits and has satisfied passengers, while the passengers on ship B are experiencing a well-organised but over-capacity voyage - leading to many dissatisfied passengers. Meanwhile, ship C is in complete disarray by being well over-capacity and poorly managed, leading to total passenger dissatisfaction (mainly but not only, because of congestion). Prof. Briguglio had said that Malta is currently like ship C - disorganised, unmanaged and over-crowded. "Even the cruise ship B example would be an improvement. This would still be an over-carrying-capacity situation, but at least, in this case, there would be an attempt to cope with it. Ideally Malta should aim to be in the Cruise ship A situation."

But the government has refused the notion that Malta is already experiencing overtourism. In his recent participation at an MHRA activity, Deputy Prime Minister and Minister for Tourism Ian Borg told stakeholders that Malta will continue to be promoted as a "world-class destination". However, the country "must work to prevent overtourism" he had said, indicating that the government believes Malta is still to reach the point of overtourism. He added that labour shortages continue to pose challenges, and the only way the sector can sustain sustainable growth is by working on workforce retention strategies and attracting top talent in hospitality.

In his comments to The Malta Independent on Sunday, Zahra acknowledged challenges in the hotel sector, particularly with five-star accommodations. "There has been a shift from five-star to more budget-friendly options like four-star hotels and short-term rentals," Zahra said. This trend was especially noticeable during the summer months of July and August, when occupancy in five-star hotels saw a decline compared to previous years. In contrast, occupancy in three-star hotels improved significantly.

Zahra attributed this shift to changing consumer preferences rather than a perception of Malta as a low-cost destination. He noted how this is a global trend, not unique to Malta. People's preferences evolve, and we are seeing a shift from high-end hotels to more affordable accommodations. Despite this trend, Zahra said he is confident that Malta's tourism industry can continue to thrive by offering quality experiences that attract top-level visitors.

The debate over quality versus quantity in tourism continues to intensify, with some critics arguing that Malta's tourism policies prioritise mass tourism over sustainable growth.

Last October, Ryanair CEO Michael O'Leary had said that the airline wants to carry eight million passengers on Malta routes, with Labour MEP Daniel Attard, a member of the European Parliament's Committee on Transport and Tourism, later commenting that what O'Leary said might not match with the country's priorities

Zahra insists that the focus must remain on managing growth sustainably rather than limiting the number of tourists. "We don't want to limit tourists, but we must manage their numbers in a way that preserves the quality of the destination," Zahra said.

On the issue of sustainability, Zahra noted that quality should be the primary focus, not just the quantity of tourists. "When we talk about quality, we mean providing a high-quality experience for tourists while ensuring that the local community benefits from tourism," he said. This mindset, he believes, will help to position Malta as a premier destination for discerning tourists, capable of maintaining its appeal while ensuring that growth does not come at the expense of the environment or local residents.

Zahra also pointed out the importance of government involvement in maintaining the quality of the tourism product. However, he emphasised that the government cannot be solely responsible for addressing all challenges. "We all need to take responsibility for improving the quality of the product, not just the government. Each of us can do something to make the experience better for both locals and visitors," he said.