Staff parties are still being held this Christmas but in smaller numbers than previous years, hotels and businesses have said, blaming the new COVID-19 variant for the cancellation of some company events.

The feeling, according to the Malta Chamber of SMEs, is that staff celebrations are going on, mostly in the form of “more formal, executive and contained” meals and drinks. Some companies are even taking their employees abroad.

“It is an opportunity to get together and do something special after having neglected each other,” said Chamber CEO Abigail Agius Mamo about the importance of these events.

She has only noted cancellations of larger-scale activities, such as conferences and government department events, while the private sector has plodded on with its staff parties.

Agius Mamo said this was in line with employers’ aims to reintroduce some form of normality to the workplace, with more intermingling between staff in a safe environment.

“This is in keeping with the much-needed team spirit employers are trying to restart and recreate,” the CEO said.

Staff stick to their bubbles in these activities, Agius Mamo pointed out, with late-night drinking not on the cards.

Deputy chamber president Philip Fenech spoke of more optimism than last year. He believes the new restrictions, like obligatory mask-wearing, have given “a sense of security that no further restrictions will be introduced”.

The spokesperson for tourism, hospitality and leisure pointed out that “Malta, at least so far, is not like other EU countries that closed their leisure industry, which it seems will be shut down for the festive season too”.

Fewer events than previous years

Westin Dragonara Resort general manager Michael Camilleri Kamsky pointed to an apparent “shift” in parties, with smaller get-togethers, such as office dos, rather than whole company events at once.

The five-star hotel and its customers were emphasising the need to adhere to the COVID-19 protocols for events, he said.

It is being hoped that local restrictions are not tightened further as this could have a very negative effect

However, the same volumes of prior “normal” years were not being seen.

 “Once Omicron came into the scene internationally, some events have been called off,” Kamsky said.

Malta Marriott Hotel & Spa general manager Alex Incorvaja is pleased with the way bookings for staff parties and Christmas and New Year dining are progressing, with festive lunches and dinners practically full.

It may not be as busy as in previous years but is “consistent and considerable”, he said, noting parties were, indeed, smaller.

Even though health protocols allowed for 300 seated guests, the largest events were for a maximum of 130, compared to 400 before the pandemic.

He said companies were being cautious – he had cancelled a dinner for the hotel’s top management to avoid the risk of having its key staff out of action over the busy period due to quarantine requirements.

The president of the Malta Hotels and Restaurants Association, Tony Zahra, said restaurants, events and corporate and staff parties are still progressing positively in many places and only one-off cancellations have been reported. 

“It is being hoped that local restrictions are not tightened further as this could have a very negative effect,” he added.

On the other hand, Christmas and New Year lunches and dinners are still slow and only a few places are fully booked.

Many establishments believe consumers are leaving it for the latest opportunity to book.

New COVID variant hits hotel bookings

Bookings for accommodation have “slowed down dramatically” and there have been some serious cancellations since the emergence of the Omicron COVID-19 variant, MHRA president Tony Zahra has said.

“November was generally at acceptable levels and all the industry was looking towards a good Christmas period,” he said. 

“Unfortunately, new restrictions abroad have had a very serious dampening effect on prospects for the Christmas period. Hoteliers are hoping that the local market can help somewhat,” he added.

Marriott manager Alex Incorvaja said hotels were focusing on the staycations market as international travel has slowed down due to the new variant and the uncertainty brought about by how various countries are dealing with it.

Travellers from the UK, in particular, would have to spend considerably more to take a PCR test before returning and again 48 hours after landing, apart from having to isolate until they get the result.

December is typically a quiet month for hotels but picks up in Christmas, peaking around the New Year.

The St Julian’s five-star hotel has seen many cancellations as a result, Incorvaja said, adding that Christmas bookings have been considerably affected by the added costs.

They could add up to around €800 for a family of four, as well as the “hassles” the restrictions cause.

Zahra said the prospects for January and February were worse than December with many hotels reporting single digit occupancy.

Hoteliers, he said, were trying to stimulate the market by dropping rates to attract business. 

“What has come through is the industry that was returning to some normality is all of a sudden thrown back to ‘emergency’ situation,” he said.

“The industry needs the government to continue with the wage supplement to at least the end of March 2022.”