Higher hotel occupancy levels

A telephone survey conducted by the Malta Hotels and Restaurants Association among its members over the past week showed that occupancy levels in hotels this month were higher than those for the same month last year.

Results of the survey show that five-star occupancy levels are up from an average 38 per cent in December 2001 to 43 per cent this year, four-star occupancy levels are up from an average 41 per cent in December 2001 to 47 per cent this year and three-star occupancy levels are up from an average 51 per cent in December 2001 to 56 per cent this year.

MHRA cautioned that while these figures were encouraging, one had to keep in mind that last year's figures represented the months immediately following the September 11 attacks when there was a subsequent lull in bookings.

Initial indications for January 2003 show substantial improvements in year-on-year figures in five-star occupancies, from 24 per cent in January 2002 to a forecast of 43 per cent; marginal increases in the four-star market, from 38 per cent to 41 per cent; and a forecast decrease in the three-star market, from 53 per cent in January 2002 to 52 per cent in January 2003.

These initial indicative figures are, however, very susceptible to change over the coming weeks depending on the flow of bookings, the MHRA said.

It said the survey also revealed that bookings for catering activities within hotels were at similar levels to last year, with some members reporting slight drops and others reporting marginal increases.

The main concerns for members who took part in the survey continued to be the state of the overall environment and the negative impact caused by this, and the possibility of war in Iraq. Both these factors were listed as the highest areas of concern for hotel proprietors and managers.

Results from the members of the association owning restaurants showed that many experienced a downturn on total year-on-year sales figures, although many members reported healthy figures for the main activity days like Christmas and New Year's Eve.

The figures reported show changes in year-on-year figures varying from a growth of 12 per cent to a drop of 9 per cent.

Members experiencing a downturn believe that the main reason for this could be the trend for groups to choose restaurants within a hotel.

Established in 1958, the MHRA now represents 70 per cent of all hotels in Malta and 35 per cent of all restaurants, collectively representing an investment of over Lm450 million and employing in excess of 20,000 people.