The target of attracting 50,000 additional tourists by the end of the year, which the government had urged the industry to aim for, would not be reached, the president of the Malta Hotels and Restaurants Association, Justin Zammit Tabona, said yesterday.
The figure was a condition imposed on the tourism industry as the proverbial carrot in return for much-needed additional promotional funds, Mr Zammit Tabona said.
National Statistics Office figures showed that tourism arrivals rose by 1.4 per cent until June - falling far short of the target, he said. "We have not been achieving the required figures every month."
Although summer was good and November's Commonwealth summit (CHOGM) and other conferences would kick-start the winter, it was not looking too favourable - not enough, at least, to bring in the required 50,000 tourists, he added.
Despite the best intentions of all players in the industry, the aim would not be reached, he insisted during the presentation of the MHRA hotel survey findings.
However, there was hope yet for next year as a result of the re-branding of the island, the restructuring of the Malta Tourism Authority and the continuous embellishment works carried out by the government, Mr Zammit Tabona said.
"As much as we are striving to increase the number of bed nights, the general outlook of product Malta leaves much to be desired," he admitted.
The government's efforts to spruce up the island for the forthcoming CHOGM meeting and the European Tourism Forum is appreciated by the MHRA but the embellishment exercise should be ongoing, Mr Zammit Tabone said.
He appealed to the government to embark on a national campaign on the importance of tourism and its effects on the economy. All ministries should be involved to improve product Malta, he said.
The survey, carried out by Deloitte, reported that hotel occupancy was up but profits down in the second quarter of the year. Despite a 0.7 per cent increase in tourism volumes over April, May and June, there was a 1.4 per cent fall in room nights due to a shorter average length of stay.
The reduction in the supply of hotel rooms helped occupancy to increase but rates fell and costs rose, leading to a fall in profits, Nick Captur, from Deloitte, explained.
The five-star category marked a drop in profits of nearly four per cent, with a decrease of nearly three per cent in the three-star sector. Four-star properties registered an increase in profits of nine per cent due mainly to the fact that the sector has seen a six-per cent reduction in room supply since last year to the benefit of business in the other hotels.
Occupancy levels were higher than a year ago across every sector, with the best trend continuing to be that of the four-star sector, up by seven per cent to 78 per cent, combined with a one per cent increase in average achieved room rates (AARR) to Lm14.57.
In the three-star sector, room occupancy rose by five per cent to 76 per cent for the quarter and AARR fell by 2.6 per cent to Lm7.59. In the five-star category, room occupancy rose by three per cent to 72 per cent and the AARR fell by 2.5 per cent to Lm39.22.
Total income per available room fell by two per cent in the five-star sector but rose in the four- and three-star categories by five per cent and 10 per cent respectively.
Speaking about the overall findings, Mr Captur said they showed a marginal improvement over last year vis-à-vis many key performance indicators. But costs were also rising and "the going remains tough as evidenced by falling levels of operating profits for many hotels before taking into account other rising costs, such as interest on their bank debt". The pressure was still on for higher volumes at better prices all the time, Mr Captur admitted.
On an international comparative basis, Deloitte's HotelBenchmark survey, published in London, suggested that Malta had achieved a mid-ranking position out of five Mediterranean resorts. It has the best increase in occupancy but a fall in room rates, while Mallorca and Cyprus reported improved rates.