MHRA President, Mr Kevin De Cesare, reported that the Key Performance Indicators for the tourism industry indicated that the overall performance for the summer months of this year were very much in line with the results registered in the corresponding period last years. National Statistics Office reports indicate that although tourist arrivals for the quarter remained at the same level of last year, the number of guest-nights generated increased by 2.2%, which should be indicative of a slight lengthening of the average length of stay.

On a year-to-date basis up to September, 2008 the overall tourist arrival and guest generation figures remain ahead of last year by 7.8% and 4.8% respectively.

Mr De Cesare went on to caution that unfortunately the reported increase in guest nights did not filter down to the hotels and that the increased guest-nights were actually taken up in non-hotel accommodation. In Q3 all three main hotel categories reported lower occupancy levels when compared to the same period last year.

Occupancy levels were lowest in the 5-star category, which notwithstanding a 13.6% increase in room stock availability registered a decline in guest-night generation of 1.8%.

On a positive note Mr De Cesare reported that all three hotel categories registered improved Average Achieved Room Rates, which allowed hotels to consolidate gains registered in the first half of the year.

The lower occupancy levels resulted in lower profitability levels in all three categories, with the most significant losses being registered in the 5-star category.

Whilst not wishing to play down the positive aspects of the results achieved in the first nine months of the year, the MHRA is equally keen to avoid a situation where stakeholders enshrine themselves in a false sense of security based on results achieved when market sentiment was significantly better than what it is at the moment. In this respect Mr De Cesare emphasised that the real negative impact of the global market turmoil only began to hit home in October 2008 when guest-night generation decreased by 12.3%.

The MHRA appreciates that the deteriorating international climate, will inevitably give rise to major challenges over the coming months but it remains confident that if all stakeholders adopt a common front, they will succeed in minimising the potential downsides. The MHRA agrees that the four most important ingredients of our reactionary strategy should be:

1. Increased marketing initiatives aimed at our main target markets;

2. Increased support for established and / emerging routes;

3. Sensible pricing strategies; and

4. The implementation of an immediate and aggressive product upgrade drive.

Mr De Cesare emphasised that “All stakeholders must work together in a co-ordinated and responsible manner which will ensure that the best long-term interests of this vitally important tourism sector will remain at the forefront of our common agenda. This is clearly not a time for confrontation or controversial decisions, which will only reduce our focus and our resolve to overcome the challenges ahead”.

The BOV MHRA Hotel Survey by Deloitte is an industry initiative sponsored by Bank of Valletta p.l.c. and is open to all hotels in Malta and Gozo, not just MHRA members. It is compiled independently by Deloitte and is the only survey to analyse trends in detail all the way from income to operating profit. Fifty properties participated in this edition. This survey edition covers 9,306 rooms (2007 Q3: 9,546) and Euro 89.7 million in revenue (2007 Q3: Euro 91.3 million). The next survey will cover Q4 of 2008. Hotels which wish to receive a full copy of the survey report and are prepared to start participating in future hotel surveys are invited to send an email to mhrasurvey@deloitte.com.mt.

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