Report reveals ‘dying’ 3-star hotels

A new Deloitte study has revealed alarming losses for three-star category hotels in Malta, with statistics indicating a record 60 per cent decline in income, stays, and profitability.
The study, compiled by Deloitte partner Raphael Aloisio, reveals how three-star hotels are dying a natural death due to just an average Lm10 to Lm15 dif­ference from four or five-star rates.
While the study confirms the forecasted loss of 50,000 visitors this year, it shows however that the tourist spending has remained practically stable.
Four and five-star hotels have registered an increase in overall occupancy in the period 2002-2006, while their profitability remained stable, contrary to spiralling running costs.
Regarding core markets, the study shows a decline in arrivals from the UK, France and Germany, while Italy is the only country that has registered an increase even though the number of flights servicing routes between the two countries were not increased.