Malta Vision 2050 for tourism misses ‘crucial metric’ – Tony Zahra

Increasing the number of tourist arrivals to Malta is no guarantee of higher hotel revenues, according to Malta Hotel and Restaurants Association (MHRA) president Tony Zahra.

“It all depends on the average length of stay,” he tells BusinessNow.mt.

He warns that if the average length of stay were to drop from the current six nights to four nights, the additional million tourists hoped to arrive by 2035 would not automatically result in greater profitability for the sector.

The target of 4.6 million tourists by that year was laid out in Malta Vision 2050, an economic development plan presented by the Maltese Government last week.

“The report does not mention one key metric: the average length of stay,” says Mr Zahra, cautioning against making any assumptions without taking this figure into account.

Mr Zahra also questioned questions the projected increase in average nightly spending, which the Malta Vision 2050 document says should rise from €144 to between €275 and €285 – although this figure is adjusted to €220-230 in 2025 prices.

“It is unclear how such a significant jump is justified or how local accommodations are expected to drive the increase in average tourist spending,” he said.

Malta Vision 2050 identifies the development of attractions like conferences, festivals and exhibition and an upgrading of the accommodation and tourism ecosystem to achieve an average spend per night aligned with similar European destinations.

Asked for his thoughts on Minister for Tourism Ian Borg’s comments, made on the Jon Mallia-hosted televised debate-show IL-KAŻIN, that one- and two-star hotels may be phased out, Mr Zahra was dismissive of the impact of such a move.

“Do they even exist?” he commented sarcastically.

A Deloitte report commissioned by the MHRA in 2023 found that fewer than 2 per cent of Malta’s tourist bedrooms were in the two-star category.

Mr Zahra therefore believes that any such policy would have a limited effect, although any impact, he adds, would be positive, as the absence of lower-tier options would leave visitors with little choice but to spend on higher-quality accommodation.

Mr Zahra also raises concerns about the lack of classification for certain types of accommodation, such as boutique hotels. He notes that the MHRA has been urging the Government for years to update and enforce relevant regulations, but no action has been taken to date.