According to the “Recover, Rethink and Revitalize” strategy document, hotel capacity will double by 2030. This could have serious implications for infrastructure and population morale. “Achieving the balance between attracting investment in a modern and improved tourism offer to raise standards, while avoiding the harms of overcapacity, remains one of our key challenges,” says Carlo Micallef, CEO of the Malta Tourism Authority.
The winter season saw significant growth in tourism, and the summer season again shows strong signs of another positive performance. But for the island, seat capacity remains of paramount importance.
“While the Malta Transport Authority and Malta Airport work together to encourage existing airlines to increase their operations to Malta by adding new routes and frequencies, the Transport Authority helps maintain the viability of the airlines by allocating marketing budgets aimed at generating demand for the seats that the airlines offer on Malta routes,” explains Micallef.
While the MTA’s 2023 expenses were 2 percent lower than expenses in 2019, Micallef explains how the MTA has focused on attracting high-end tourists and year-round tourism.
“However, we should not oversimplify comparisons of average spending by taking inflation into account and making simplified comparisons. According to the standards of international tourism statistics adopted by Eurostat, tourism spending also includes spending on air travel.
“Indeed, when we look at a comparison of the mix of nationalities between 2019 and 2023, it becomes clear that 2023 saw a southward shift in tourism flows with an increase in the number of Italians and other southern Europeans visiting Malta and a decrease in the numbers of tourists from distant markets such as the UK, Germany and other countries. North.”
Can Maltese businesses attract high-spending tourists? Can the authorities incentivize tourism companies so that investment in improving their products is no longer seen as a cost but a net benefit in the long term?
“The role of the Metro Transport Authority is to improve and enhance connectivity between airlines and to conduct external marketing activities between businesses and between businesses and consumers in order to generate demand for all businesses that are able to respond to tourism demand. However, there are many funds and programs available through other government agencies that operators can benefit from in this regard.”
More sustainability in tourism
In 2021, the Malta Chamber sounded the alarm that Malta’s tourism figures were not financially, environmentally or culturally sustainable, a point confirmed a year later by the Deloitte-MHRA report. Can we keep pushing for higher targets? Are we approaching saturation point?
“The strong recovery in tourism is a phenomenon felt in many countries, but in Malta, we are achieving a more balanced spread of tourism throughout the year,” explains Micallef.
“In fact, as expatriates arrive from a mix of different source markets, the average length of stay is slowly declining, pushing the industry to build a more sustainable and profitable year-round environment that provides employment rather than seasonal work.”
Recently, Venice imposed the world’s first fee of €5 for visitors entering the city.
“These fees do not deter volumes, and will be paid by almost everyone who wants to experience a destination like Venice. But they can be beneficial if they are packaged in a fund that enables better visitor management in the areas concerned, including the introduction of a range of smart management techniques that take into account the latest technological developments and artificial intelligence to maximize visitor throughput while minimizing negative impacts.”
Concern over Malta’s deteriorating competitiveness
Critics say Malta, although primarily a three-star hotel market, cannot compete with upscale tourism because it lacks the infrastructure, human capital and shopping and culinary experiences sought by upscale clients.
According to Micallef, Malta has succeeded in reinventing and recreating its offering and repositioning it as an attractive destination for a wider range of nationalities, seasons and motivational reasons.
“Malta is no longer the cheap and cheerful destination for price-sensitive tourists, but now attracts a wider range of nationalities and interest groups willing to spend more.”
“However, we should never become complacent. We must continue to compare our offerings to the best of our competitors to ensure we continue to improve the experience we provide.”
Post Covid Tourism
Covid has shown us that tourism has a certain scope and there must be a balance between quantity and what can be defined as quality but specialized operations alone, such as luxury tourism or agritourism, will not pay the country’s bills.
“We should never view the types, categories and classes of tourists as mutually exclusive and isolated from each other. The tourists we attract come from the same geographical markets and travel on the same airlines from the same airports to reach Malta.
“Over the past years, we have identified travel motivations that best suit the destination in terms of product offering and which are least sensitive to price. We are no longer at the mercy of tour operators who choose to either accept or reject, because although prices have risen significantly in Malta and Gozo However, tourists are willing to pay for it.”
“The industry needs a critical mass of visitors to sustain operations and achieve economies of scale. At the same time, increasing numbers of more lucrative areas will maximize revenues and suit Malta’s unique year-round offer,” Micallef added.
Asked about the MTA’s work to attract long-distance routes that typically bring tourists with higher spending budgets, Mr. Micallef noted that while the MTA remains committed to investing resources in markets and market segments that maximize industry returns, markets like America The North is going strong on this matter. Its current and future plans.
“We are doing our best to continue improving connectivity to the Maltese Islands to increase tourism volumes that will make it possible for airlines to consider direct flights.”
Tables, chairs and construction
The Tables and Chairs saga was born out of a desire to support businesses. But while limited space is sacrificed for personal business interests, the quality of many of the settings leaves much to be desired. Doesn’t this compromise the tourist experience?
“The ministries responsible for tourism and culture have recently appointed an operational committee for the Valletta Management Plan to address issues such as this, and we are bringing together all relevant authorities and institutions involved to address this situation.”
“In terms of construction, this will always impact on tourists’ experiences, but now that Malta has reached the peak of construction activity, with new rules and regulations for the construction industry coming into effect, it is hoped that the situation will gradually improve.
Independent journalism costs money. Support The Times of Malta The price of coffee.
Support us