No classification criteria existed for boutique hotels, meaning anyone was free to promote properties in that category even if they did not necessarily qualify, the Malta Hotels and Restaurants Association said.
The last hotel classification is 10 years old and is being revised by the Malta Tourism Authority to meet market demands and plug the boutique hotel loophole, allowing for the development of new accommodation products.
MHRA president George Micallef said the association, which was working with MTA on the review process, was concerned that references at the recent launch of two hotels could give the impression they had already been given the green light by the authorities for an official boutique hotel classification when the criteria had not yet been established.
The new development in Vittoriosa, for example, which was referred to as a five-star boutique hotel, could not be classified as a hotel because it had fewer than the 10 rooms required by law, Mr Micallef pointed out. "Neither could it be classified as five-star and certainly not as a boutique five-star," he added.
While there was nothing to stop anyone from promoting their establishment as a boutique hotel, "it would appear prejudicial for anyone to refer to this official category when the eligibility criteria had not yet been established".
"This may also misguide the public and give an unfair advantage to the hotels concerned, which may be allowed to do away with a number of facilities when other hotels are, so far, obliged to provide them all, according to the category they are licensed for," Mr Micallef said, calling on the authorities to ensure a level playing field for everyone.
The classification regulations were being revised so they would include "intangibles", such as the service aspect, allowing for more flexibility and the new accommodation products coming on stream.
Under the present hotel classification system, properties can only be licensed as five-, four-, three- and two-star and the MTA only considers exceptions in the case of heritage buildings because of obvious structural limitations.
Mr Micallef said the MHRA was discussing with the authority the possibility that, rather than introducing a "label" for five-, four- and three-star boutique hotels, it should have an independent single category. This would be limited to properties of about 50 rooms, offering a quality product and a high level of service but not necessarily all the facilities, like multi-restaurants and pools, which are compulsory in the higher end.
"Technically, as things stand, while every property is free to market itself as a boutique hotel, it still needs to meet the minimum criteria for the respective star category it has been licensed under and has to provide the facilities required," Mr Micallef noted.
Although common denominators exist, boutique hotels in Europe and worldwide have various interpretations. They are normally expected to be small. However, a number of big hotels, with over 150 rooms, are also promoted as such.
According to the MHRA, the category is best described as individually designed to evoke a unique feeling and offer a chic and trendy atmosphere. Their location is key and not just determined by convenience but also by the "trendiness" of the neighbourhood.
"The atmosphere may be the single most critical factor, including décor, ambience, personalised service, the staff attitude and how these ingredients combine to create a genuine sense of intimacy," Mr Micallef explained.
He said the MHRA strongly supported the development of boutique hotels and often encouraged investment in this category, believing they could cater for a demand in the market that had immense potential.
The association would continue to provide the MTA with the necessary input to publish the new conditions for the boutique hotel category in the shortest possible time, he said.