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Business • February 27 2005


MHRA concerned over lower tourism expenditure

The Malta Hotels and Restaurants Association this week expressed its concern over the fact that tourists visiting Malta last year spent Lm3.8m less on accommodation than they did in the previous year, according to recent figures for 2004 issued by the National Statistics Office.
Also of concern to the MHRA was the fact that over the same period tourists decreased their average stay in Malta from 10.2 nights per person to 9.7 - a decline of five per cent.
These results, the MHRA says in a statement released this week, emphasise the necessity for a concerted effort to tackle with urgency the upgrading of the Malta product and the early completion of the restructuring of the Malta Tourist Authority to ensure that marketing activity in our source markets is re-invigorated.
The Association states, “The MHRA is incessantly pointing out to the authorities features in our product that need to be upgraded and pressing for action on them. The Association believes that it is through vigorous promotion and the delivery of value for money that the tourism industry in Malta can return to healthy, sustainable growth.”
The MHRA also deems total tourist expenditure figures as ‘disappointing’, particularly considering the fact that while tourists visiting Malta increased had by 3.5 per cent, their expenditure increased by only 0.6 per cent - reflecting a decrease in per capita spending. According to previous NSO figures, such spending dropped by 2.8 per cent in 2004 compared to the previous year.
While figures for the sector are indeed showing signs of recovery, the MHRA comments, “it is far from gratifying to note that tourists from the UK, our largest market, decreased by 19,900, a drop of 4.2 per cent over 2003. The UK market represents 40 per cent of tourists to Malta”.
The Association adds that whereas increasing figures of tourists are a positive aspect for the sector, such increases are of little value unless complemented by corresponding expenditure increases, particularly at a time when the industry is still to emerge from a decline afflicting the sector since 2001.
According to official figures, 1,157,682 tourists visited Malta last year, while tourist air departures numbered 1,127,407 - an increase of 3.5 per cent over 2003.
Of the total tourist departures by air, 86.9 per cent was flow from the EU25 countries. Departing tourists by air whose country of residence is part of the EU25 increased by 2.7 per cent when compared to the previous year.
Tourists departing by sea made up 2.6 per cent of the total tourist departures during the period under review and were found to have increased by 3.9 per cent over 2003.
Foreign cruise passengers that were either landed, embarked or in transit reached 284,952 during the year 2004, a decline of 25.7 per cent when compared to year 2003.

Length of stay
Tourists departing by air spent 10,973,396 nights in Malta - a decrease of 1.3 per cent when compared to the previous year. However, the average length of stay in year 2004 was of 9.7 nights. This indicates a decline of 0.5 nights when compared 2003, during which the average length of stay had stood at 10.2 nights. The highest average length of stay during 2004 was in December at 11.4 nights. This was followed by the summer months July, August and September at 10.8, 10.6 and 9.8 nights respectively. The month of February also had a high average length of stay at 10.8 nights.

Expenditure
Over 2004, total tourist expenditure of those departing by air stood roughly at Lm432.3 million; an increase of 0.6 per cent when compared to 2003.
Package holiday expenditure was approximated at Lm219.5, an increase of Lm5.6 million, while non-package expenditure amounted to Lm69.3 million – with airfare expenditure of Lm43.0 million and accommodation expenditure at Lm26.2 million.
Between January and October 2004, the highest net use level of bed-places were during the months of July, August and September - at 74.9 per cent, 84.4 per cent and 67.8 per cent respectively. The figures depict a rise in occupancy levels for the months of August and September when compared to the previous year.





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E-mail: maltatoday@newsworksltd.com