Tourist arrivals need to increase by one million for occupancy rates to be maintained: MHRA survey
Tourism numbers will need to increase by over one million visitors compared to 2023 levels to maintain the same occupancy rates, a survey by the Malta Hotels and Restaurants Association has shown
Tourism numbers will need to increase by over one million visitors compared to 2023 levels to maintain the same occupancy rates, a survey by the Malta Hotels and Restaurants Association has revealed.
The survey, carried out by Deloitte, showed tourism arrivals will need to reach four million for occupancy levels to be reached.
The MHRA Q3 2024 Performance Survey also addressed the proposed introduction of a skills pass prior to the employment of workers—an idea that respondents found promising in principle but requiring further refinement.
The survey warned that poor planning could lead to significant disruptions and urged authorities to account for current labour shortages when implementing new requirements.
David Delicata, Deloitte Malta's Transportation, Hospitality, and Services Leader, noted that Deloitte had been commissioned to conduct a tourism carrying capacity study two years ago, during the recovery phase from the Covid-19 pandemic. He explained that the study aimed to assess the sustainability of Malta’s tourism market.
Delicata stated that Deloitte’s analysis estimated the need for 4.5 million annual tourist arrivals to sustain 2019 occupancy levels.
He also highlighted that over 13,000 new rooms are planned for development across Malta and Gozo, representing a 70% increase in Malta’s collective accommodation capacity based on current projections.
Delicata explained to maintain collective accommodation occupancy at 2023 levels—assuming the full pipeline of new properties is realised and 15% of existing bed stock is retired—tourist arrivals would need to increase by just over one million compared to 2023 figures.
He warned of significant risks of oversupply in the coming years if action is not taken, with tourist arrivals needing to reach 4.4 million annually. Delicata emphasised that ignoring these warnings could have severe repercussions for the hospitality sector and investors.
Tourist arrivals for Q3 2024 reached 1.2 million, an increase of 180,000 arrivals or 18% compared to Q3 2023. Guest nights rose by 871,000 compared to the same quarter in 2023. Delicata also noted that tourist nights in 2023 increased by 4.7% compared to 2019. Additionally, the number of flights in Q3 2024 was 13.3% higher than in 2023.
Regarding tourism expenditure, Delicata reported that Q3 2024 spending reached €1.27 billion, a 22% increase over the same period in 2023. This reflects higher spending driven by the rise in tourist arrivals, with the average spend per tourist standing at €1,080—a marginal increase of 3.6% compared to Q3 2023.
Occupancy levels in 5-star and 4-star accommodations recorded slight increases compared to 2023, Deloitte reported. For Q3 2024, 5-star occupancy rose by 3.8%, while 4-star occupancy increased by 2.1%.
Minister, shadow spokesperson react to study
Tourism Minister Clayton Bartolo described the survey results as positive, highlighting several encouraging figures.
However, he acknowledged the challenges still facing the industry.
“It is clear that challenges remain, and it is up to us to offer solutions and turn these challenges into opportunities,” he said.
The minister noted the government's support for the industry, including energy subsidies, which he said contribute to stability. He emphasised that the tourism sector, as one of Malta’s key economic pillars, requires significant attention and investment.
Bartolo also remarked that the tourism industry has emerged from the Covid-19 pandemic even stronger than before.
He underlined the importance of connectivity, referencing the government's efforts to expand it. Bartolo stated that Malta currently has the most robust connectivity program in its history and revealed that discussions with various airlines are ongoing to further position Malta as a prominent destination.
The PN’s shadow minister for tourism Mario De Marco said public sentiment in Malta has become hostile towards an increase in tourism arrivals. He said before 2007, the industry and the general public were in unison, but now something has changed.
He said that it takes a courageous politician and a courageous entrepreneur to talk about implementing an upper limit. The MP insisted challenges must be addressed, saying the time for change in government is now.
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