Malta plans to raise tourist arrivals by a million to 4.5m in a decade

The government intends raising the number of tourist arrivals by almost a million to 4.5m in a decade under new plans unveiled on Tuesday.

It also wants to triple the tourism sector’s contribution to the economy while doubling tourist expenditure per night.

The goals are part of the government’s Malta Vision 2050, an economic plan for the country launched Tuesday that aims to see GDP grow by a “more sustainable” five per cent per year by 2035.

The strategy for the sector “is to shift towards premium offerings that prioritise quality over quantity, balancing visitor volumes with higher per capita expenditure”, according to a policy document for the economic vision.

To do that, the government intends to develop the country’s conference, festival and exhibition activities and upscale the accommodation, goods and services on offer “to attract high-spending visitors” and compete with other European destinations.

By 2035, it wants to increase tourist spending to between €257 and €285 per night, almost doubling the €144 spent per night seen last year.

Those figures could change, however, with the government noting the targets set are based on inflation projections over the next decade. The ‘real’ targets not taking inflation into account are between €220 and €230.

The number of tourists is also set to increase, though proportionally by not as much; last year Malta welcomed some 3.6 million tourists, a figure that is targeted to increase by up to 4.5 million by 2035.

The sector’s contribution to the economy, meanwhile, is expected to see staggering growth should spending and tourist numbers increase as the government intends; it hopes that in 10 years, tourism should be generating between €2.4 billion and €2.9 billion each year, up to almost three times the €1 billion seen previously.

While tourism revenue is set to increase, however, the sector's growth rate – seemingly in line with the government’s words on sustainability – is aimed to decrease from an 8% growth rate in Gross Value Added (GVA) over the past decade to a more modest 6% to 7% growth rate.

GVA measures the economic value that each individual sector contributes to a country’s economy.

Drilling down into how it intends to reach such targets, the policy document outlines hosting “higher value” international meetings, building a multi-purpose conference centre and theme park and creating events based on “Malta's heritage, culture and niches”.

It intends to expand “premium accommodation” and “quality furnished” holiday homes, especially those in Gozo qualifying as high-end listings on platforms like AirBnB and make sure more Michelin restaurants, high-end brands, premium local tours and VIP services are on offer.

In a bid to attract US tourists and other higher-spending visitors from further afield, the government also plans to expand the country’s aviation reach and better capitalise on the country’s “strategic position” geographically.

Long-haul flights to North America, the Middle East and Asia are planned, as are other measures to increase Malta’s aviation industry, including developing a dedicated cargo terminal at Malta International Airport and dedicated components servicing facilities.

The government also intends to harness satellites and AI to make air routes more efficient and better connected, with plans to use EU funds to boost research and development.

These changes, among others, are hoped to deliver stunning growth for the aviation sector, leading to annual contributions of up to €3.3 billion to the economy – a staggering 370% increase vs the €700 million seen previously – and accounting for up to 9% of GDP.

Malta’s management of the tourism sector has long been a national talking point, with calls to reduce the number of tourists while boosting average spend.

In August, Malta Hotels and Restaurants Association president Tony Zahra said the country was nearing the maximum number of tourists and suggested targeting older, higher-spending visitors.

Ways of increasing spend floated by the industry have included attracting more tourists during out of season – so-called ‘shoulder’ months – and promoting niche areas like agriculture-based activities, or agritourism.