Occupancy in five-star hotels registered an average of 25 per cent for July but August is “looking better”.
Some properties are experiencing sporadic surges and forecasting a higher percentage of occupied rooms for this month.
On the other hand, there are also reports of cancellations coming in for the end of August as Malta’s COVID-19 cases continue to rise.
The average daily room rate in July was down by 25 per cent, compared to the same period last year, according to the STR Report, which is based on data submitted by hotels to provide insight into the market and competition.
Industry sources predict five-star hotels will be running at 35 to 40 per cent occupancy this month.
Winter, though, remains worrying and is seen as a challenge.
Hilton Malta commercial director Julian Diacono acknowledged that while July was slow, August is so far better than expected, with the market a mix of the local and traditional from the United Kingdom, Germany and Italy.
This month, occupancy has averaged between 30 and 60 per cent, Diacono said, attributing the days when it went up – nowhere near the usual 96 per cent at this time of the year – mainly to local bookings, possibly using the government vouchers.
“We are anticipating this will hold and that the month will average at around 55 per cent occupancy,” he said, hoping the recent spike in coronavirus will not ruin things.
Bookings were “very last minute”, he said, with 20 to 30 easily coming in from one day to the next.
Hilton Malta had remained open, with reduced services, throughout the partial lockdown, preparing its campaign and kickstarting quite fast once the doors to tourism were opened.
The Westin Dragonara Resort started at single-digit occupancy when it opened in July, slowly climbing during the month to peak at 40 per cent in the last few days, with the average standing shy of 24.5 per cent, said its general manager Michael Camilleri Kamsky.
The first two weeks of August are averaging at 50 per cent occupancy for the available rooms at the Westin, tapering down for the last two weeks, Camilleri Kamsky said.
But the situation is “very volatile and at risk of sudden changes”, based on new restrictions imposed in source markets. Ireland, for example, has booted Malta off its safe travel ‘green’ list, resulting in cancellations and a slowdown in last-minute bookings.
“Hopefully, we will maintain last-minute business flow, unless situations beyond our control occur,” Camilleri-Kamsky told Times of Malta.
The island has gone from the place to be because of a controlled COVID-19 situation in early July to having a rate of new cases that is now among the highest in the EU.