Hotels and restaurants fare better than this time last year

A telephone survey conducted by the Malta Hotels and Restaurants Association (MHRA) across its membership base in the past week shows that occupancy rates of its hotel members during the month of April have fared better than the corresponding period last year.

Results show that, during April this year, five-star anticipated occupancy levels will be up from an average 62 per cent in April 2003 to 67 per cent; four-star up from 63 to 71 per cent and three-star up from 72 to 83 per cent.

During Easter week, overall occupancy levels should increase from 63 to 69 per cent.

This confirms what MHRA have been saying since last November, i.e. that the second quarter of 2004 could see a turnaround for the industry, subject to international conditions remaining stable, the association said.

But MHRA cautioned that while these average figures were encouraging, one must keep in mind that within each segment there are properties which have also not done so well.

In fact in the different hotel segments performance varied substantially.

Within the five-star market 83 per cent of properties said they fared better than last year; this compared to the four-star market wherein 60 per cent said they fared better, 10 per cent the same and 30 per cent worse than last year. In the three-star sector, 67 per cent also fared better than last year.

Results from the restaurant membership base of the association has revealed that advance booking for Easter Sunday lunch was positive, with the majority reporting that they expect a better turnout than last year.

Twenty-two per cent of restaurant establishments interviewed reported that the higher end of the market would experience a slightly better performance with the remainder reporting the same expectations as last year.

Fifty-seven per cent are expecting a full house.

In the second-class and lower categories 31 per cent will experience a slight drop in business, although most are expecting a good performance on the day due to the usual Easter Sunday lunch last-minute bookings pattern.

Nineteen per cent were expecting a higher turnout while the remainder (50 per cent) expects the same performance as last year.

The MHRA 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 over 20,000 people.