Hospitality Industry in Malta, 2024

In January 2024, the feeling was that the hospitality industry in Malta would most likely adopt a ‘wait and see approach’.

According to the data released by NSO Malta, the total number of inbound tourists in the first five months of 2024 exceeded those of the preceding year by 245K or 24.6%. The total expenditure increased by Eur207M for the same period or 27.6%. The same trend cannot be attributed to the spending per capita. The increase was 2.4%, from Eur754 in 2023 to Eur772 in 2024, compared to the same period.

Although the above figures are generally positive, the insignificant increase in spending per capita is telling.

The industry must grow, but it is also imperative that the quality of the tourists and their expenditure experience healthy growth. An increase in operational costs for operators is a constant threat. The shipping industry is once again experiencing a significant increase in rates. Research shows we are heading to prices close to those experienced during COVID-19. (Fears are rising ocean freight rates may surpass $20,000 with no relief for global trade into 2025, CNBC.com.) This situation puts more pressure on operators and obliges the industry to demand quality over quantity.

The general feeling in Malta is that the island is overpopulated, especially in summer. In a democratic electoral process that happened some weeks ago, there is a consensus/feeling that a considerable section of the population wanted to message decision-makers that it is not okay anymore to look at figures only. Quality of life matters, too.

The tourism industry in Malta is booming, but will the country rest on volumes only or eventually tweak its strategy?

Politicians/decision-makers have a golden opportunity to address a situation that will please society and, in the long term, even hospitality operators.

We need to alleviate the infrastructural pressures on the island and promote quality. Let’s manage and maintain the tourist areas properly. We must ensure that we give the tourists an experience and not only a place to swim in guaranteed hot weather. Let’s accept that to provide better service in the industry; we need to give more importance to quality, more importance to detail, more importance to creating unique and memorable experiences, and more importance to ensuring that whoever visits the island promotes it for its unique attributes.

We should not be fixated only on numbers. We can keep pursuing increasing the numbers and deteriorating the quality of life of the Maltese citizens and visitors to our island, or we can accept that the current strategy contributed to unprecedented growth; however, it is now the time to shift our focus to other matters.

Unless all stakeholders get together and agree on a common way forward, everyone feels disconnected from the goal, and yes, a ‘wait and see’ approach will continue to dominate.