Alan Arrigo on why Malta needs to shift focus from tourist numbers to quality experiences

As Malta continues to see record-breaking tourist arrival numbers, concerns about sustainability and visitor experience are mounting.

Alan Arrigo, Co-CEO of Robert Arrigo & Sons and a council member of the Malta Chamber, sheds light on the evolving landscape of Maltese tourism, the challenges of maintaining quality, and what it would take for the island to attract high-value travellers.

In both 2023 and 2024, Malta experienced significant year-on-year increases in tourist arrivals – 32 per cent and 20 per cent, respectively. However, despite this growth, spending per visit has failed to keep pace, with a four per cent decline in 2023 and only a marginal one per cent increase in 2024 when adjusted for inflation.

Mr Arrigo tells BusinessNow.mt that these figures underscore a crucial reality: “It is crucial to account for inflation, as headline figures alone can be misleading – while prices may rise, the actual value of services provided may remain unchanged or even decrease.”

A key factor affecting spending is the declining length of stay. While in 2019 most visitors stayed for a full week, today’s average stay has shortened to 6.3 days. This shift is largely due to growing price competition among accommodation providers, as an oversupply of beds exerts downward pressure on pricing.

Shorter stays also contribute to tourist congestion in key hotspots, placing greater strain on infrastructure, transportation, and essential services. “While record-breaking arrival numbers may seem positive, they have also raised concerns about sustainability and the overall visitor experience,” Mr Arrigo notes.

At the same time, there is an increasing demand for high-quality, experience-driven tourism. “Discerning visitors – who may not necessarily be luxury travellers but seek meaningful, high-quality experiences – are looking for private cultural tours, good-quality accommodations, quality dining, and bespoke activities that go beyond standard tourism offerings.”

The path to attracting high-end travellers

To become a preferred destination for high-end travellers and corporate clients, Malta must enhance its tourism offering beyond numbers.

“With high-end travellers and corporate clients, a destination is only as strong as its weakest link. This is why, more often than not, this niche relies on Destination Management Companies (DMCs) to paper over the cracks in our offering,” Mr Arrigo explains.

While DMCs add value by curating seamless experiences, they should not be used to compensate for broader structural shortcomings. A fundamental shift is needed, one that prioritises quality over quantity. Mr Arrigo suggests that Malta should measure success by expenditure per tourist rather than total arrivals.

Product refinement is also essential. While Malta boasts high-end accommodations, cultural attractions, and a growing culinary scene, much of the tourism infrastructure is still geared toward mass-market visitors. Instead of simply expanding the accommodation sector, efforts should focus on improving the quality of existing underperforming providers.

“Rather than continuously adding new products, we should focus on upgrading and improving the existing offering across the board,” Mr Arrigo states. He also highlights that in the MICE (Meetings, Incentives, Conferences, and Exhibitions) sector, Malta’s ability to host high-profile events is often hampered by infrastructure limitations.

Ultimately, a mindset shift is required – one that ensures Malta is recognised as a quality destination rather than a mass-market tourism hub.

Connectivity: A key factor, but not the only one

Direct flight connectivity is frequently cited as a game-changer for high-value tourism. While Mr Arrigo acknowledges that links to high-spending markets like the US, China, and the Middle East could be beneficial, he cautions that airlines prioritise commercial viability.

“Before considering a direct route, airlines assess whether there is already a sustainable level of demand from travellers visiting Malta. At present, visitor numbers from the US and China remain below the threshold that airlines typically require to justify such an investment.”

Moreover, securing direct flights alone is not enough – Malta must also cater to the expectations of these travellers. This includes ensuring service readiness, such as having Mandarin or Arabic-speaking guides available for tourists from China and the Middle East.

Instead of focusing solely on long-haul connections, Mr Arrigo argues that Malta should strengthen links with its core European source markets, particularly those with a history of high-spending visitors. Additionally, positioning Malta as a key stop within a broader European itinerary could help capture long-haul tourists who visit multiple destinations in a single trip.

The role of events in quality tourism

Cultural events such as Carnival have long been a staple of Malta’s tourism industry, offering unique experiences that attract visitors outside the traditional peak months. However, he notes that while these events hold significant cultural value, their marketing efforts are largely focused on the domestic audience rather than international travellers.

“While Carnival is a major celebration locally, it does not yet have the same international pull as other Carnival destinations like Venice, Rio, or even Tenerife,” he observes. That said, such events could be leveraged to boost off-peak tourism if marketed effectively.

However, Mr Arrigo stresses the importance of maintaining authenticity. “It is important that these events remain self-sufficient in the long term and are designed to enhance both the resident and tourist experience, rather than prioritising one at the expense of the other.”

Malta stands at a crossroads in its tourism strategy. While recent years have seen a surge in visitor numbers, the challenge now lies in balancing quantity with quality. Shorter stays, pricing pressures, and infrastructure constraints all pose significant hurdles. However, there is also a clear opportunity to reposition Malta as a destination for high-value travellers.

The key lies in product refinement, infrastructure improvements, and a shift in mindset – one that prioritises value over volume. As Mr Arrigo puts it, “the foundation is there, but a shift in mindset is needed – one that ensures Malta is recognised as a destination for quality, high-yield experiences rather than mass-market tourism.”