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Hotel profits increase as tourist numbers continue to rise

Tourist arrivals for the first quarter of 2017 were up by 24% compared to the same period last year

yannick_pace
Yannick Pace
16 June 2017, 7:43pm
Tourist arrivals in the first three months of 2017 are up by 24% over 2016
Tourist arrivals in the first three months of 2017 are up by 24% over 2016
The number of tourists that came to Malta in the first three months of 2017 was 24% higher than the same period in 2016, according to Raphael Aloisio, a Financial Advisor at Deloitte and author of the Deloitte Hotel Survey.

Aloisio was speaking at the Hotels Performance Seminar, organised by the MHRA, where he gave a rundown of tourism statistics for the first quarter of 2017, while also highlighting trends in industry Key Performance Indicators over the past five years.

He insisted that the results achieved today “did not come out of nowhere” and were the result of consistent improvements.  

“Clearly over the past five years they have been very consistent,” he said. “There are many growth lines that are sustainable and very consistent.”

He said the number of tourists visiting Malta had increased from 1.42 million in 2012 to just under 2 million in 2016, with the average number of guest nights also increasing from 11.8 to 14.9 over the same period. This, he said, was indicative of the increase in the average length of stay per visitor.

He explained that while there was an increase in hotel, or collective accommodation, occupancy, the biggest increase had been registered in private accommodation. He said that hotel occupancy numbers showed that this was not indicative of private accommodation taking tourists away from hotels.

“It’s a situation were clearly the occupancy levels of hotels are at good levels,” said Aloisio. “Its more reflective of the change in the model we’re looking at in the tourism sector.”

Total tourist Expenditure, he said, had also increased since 2012 when it stood at €1.3 million. By 2016, the number had risen to €1.7 million, although according to Aloisio the average amount spent by each tourist had remained relatively constant.

Among the other findings of the survey was the fact that all hotel categories experiences a significant increase in gross operating profit, with hotel room rates growing by 45% since 2012. 

First quarter of 2017

The overall number of tourist arrivals in the first quarter of 2017, increased by 24% over the previous year.

Collective accommodation also experienced significant growth in the first quarter, with a 19.9% increase registered over the previous year. According to the Deloitte Hotel Survey, the increase translated to higher occupancy rate in all hotel classes, with the most notable increase (12.3%) registered by 4-star hotels.

The average length of tourists’ stay in Malta decreased from 7.25 days in the first quarter of 2016, to 6.5 days in the first quarter of 2017.

Furthermore, the Total Revenue per Available Room (TREVPAR) was up in all hotel sectors, with the largest increase being registered by 5 and 4-star hotels, while the average daily rate for rooms increased for all hotel classes, with the exception of 4-star hotels. 

As a result, the gross operating profit per room for all hotel types showed a significant increase. The profit registered per room by 5-star hotels increased by more than double.

yannick_pace
Yannick joined MaltaToday as a journalist in 2016. His main areas of interest are politics...