Hotel and restaurant owners are expecting another record year in view of an eight per cent increase in January arrivals compared to last year.

This follows a year of positive results when €1.3 billion was spent by a record number of tourists, according to a study by the Malta Hotels and Restaurants Association. This was a nine per cent increase over 2011 (€1.2 billion) and 18.8 per cent over 2010.

Last year also saw a two per cent rise in arrivals and a 7.8 per cent surge in guest nights, despite a negative first quarter. The average length of stay grew by 4.8 per cent to 8.7 nights from 8.3 nights, the survey by Deloitte showed.

Although hotels did not register significantly different occupancy rates when compared to 2011, “private accommodation” reported a 16.2 per cent increase, a point of concern for MHRA because such accommodation is unlicensed.

Guest houses, hostels and tourist villages registered an increase of 22.3 per cent in the number of guests.

Three, four and five-star hotels registered improved “average achieved room rates”, which enabled them to finally beat the levels of 2008, before the economic crisis. Gross operating profit per available room returned to the positive 2008 levels despite increased overheads.

MHRA president Tony Zahra yesterday pointed out that accessibility was the key to the island’s success. He stressed, however, that the hotel industry registered a cumulative net loss of €10 million between 2006 and 2011 due to ever-increasing overheads.

He advised hoteliers not to lower their rates because 2013 was likely to be another record year thanks to increased seat capacity planned for the summer months.

The sharp rise in January arrivals was already a very positive sign, with increases from Libya (45.6 per cent), Belgium (40.9 per cent) and Italy (17.75 per cent) offsetting fewer arrivals from Spain (-34.9 per cent), the United Arab Emirates (-11.3 per cent) and Germany (-0.2 per cent).

Occupancy in January was up 1.3 per cent in all hotels, with a significant 16 per cent increase in the three-star category, according to Malta International Airport figures.

Turning to next week’s election, Mr Zahra praised the Government for securing a €1.12 billion deal with the EU despite cuts to the overall EU budget.

However, he reiterated MHRA’s clear message to politicians: increase arrivals in the shoulder months, lower utility rates by 4c per kilowatt and cut VAT to five per cent.

He said MHRA also wanted an “effective and efficient” Cabinet leading a lean government structure as well as independent public institutions spearheaded by “competent officers who are well trained” and selected by a Board Resourcing Office within the Office of the Prime Minister.