The average tourist in Malta is spending less money than they did before the COVID-19 pandemic. 

Tourists who visited the country in the first six months of this year spent an average of €109 each day they spent in Malta, with spending dropping by 2.5% over the past three years, said Deloitte financial adviser Raphael Aloisio. 

Apart from the concern about lower-spending tourists, local stakeholders must also contend with fewer tourists in Malta overall: the number of visitors remains well below pre-pandemic highs and MIA CEO Alan Borg has said he expects 2022 tourism numbers to compare to those registered in 2015. 

That issue was reflected in the tourism expenditure figures revealed on Friday, with Aloisio noting that total tourism expenditure between January and June only reached 76 per cent of that in the same period of 2019.

The figures were published by the Malta Hotels and Restaurants Association in a survey carried out by Deloitte. The survey analysed the situation during the first two quarters of the year. 

Despite a “difficult first quarter”, Aloisio said the survey found tourist arrivals in the second quarter reached around 86 per cent of 2019 levels. On the average length of stays, the survey found that these were “marginally higher” than the figures registered in 2019. 

Hotels vs private accommodation

The survey also found a slight shift in the kind of accommodation tourists went for during the first six months of 2022, with more people opting to stay at hotels.

“The recovery in the private accommodation sector was less than the national trend and it was better in hotels. There were no radical changes but rather, a slight shift. 

“This is a result of the fact that hotels took additional precautions and those that prioritised safety are doing better, even when compared to other hotels,” Aloisio said. 

On operations strategies by hotels, the survey found that five-star hotels focused on higher rates, even if occupancy levels were lower. Four-star hotels, meanwhile, took a more balanced approach and kept rates similar to 2019 to ensure higher occupancy. 

Hotels in Bugibba, Qawra and Mellieħa were found to be the “stronger performers” while those in Sliema and St Julian’s registered lower booking volumes. 

Projections

Looking ahead at August, bookings suggest room rates will be slightly higher than in previous months, although these are expected to dip later on in the year, suggesting occupancy will be the focus in the low season, Aloisio said. 

On cancellations, Aloisio said that for August and September, the rates were higher than in July. Hoteliers also reported that booking pace in the past two weeks seems to have declined slightly. 

Addressing the same event, MHRA president Tony Zahra said connectivity was the major challenge that the industry was now facing.

“The industry is about connectivity. As an island that depends on connectivity, we are looking at the aviation industry - which is what brings over customers. At the moment it is in total chaos,” Zahra said. 

Luggage issues, for instance, are being reported all over Europe, Zahra said, adding that airlines continued to struggle to find staff to operate flights. 

The association president said that the upcoming winter months will see around 80 per cent of 2019 levels.

“The challenges are there. We don’t see a fast recovery in the aviation industry. At this point in time I would like to emphasise how important it is to have our national airline Air Malta as otherwise our problems would be grossly compounded,” Zahra said. 

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