Hotels enjoy mini-boom but nervous about near future

Hotels have benefitted from a surge in occupancy due to the evacuations from tumultuous Libya but they are also aware the uprising in the neighbouring country could have negative repercussions in the long term.

Although pleasantly surprised, albeit as a result of “sad” circumstances, hoteliers know their occupancy is due to level out and that “things could go either way” in the near future as the unrest escalates.

Over the weekend, as Malta was transformed into an evacuation hub, with countries scrambling to pull out expats and whole companies converging on the island, The George boutique hotel in St Julians experienced a rise in occupancy from 60 to 100 per cent.

While the situation was good in terms of business, general manager Malcolm Azzopardi said the humanitarian aspect was also seen to. “We had clients who had no money because many had to bribe someone to get into the airport. In these cases, we helped them make arrangements and let them contact their families if they needed to,” he said.

About 12,000 evacuees passed through Malta in a week, although many stayed on the vessels that brought them over before departing by air.

Mr Azzopardi is now concerned about a possible downside to the unexpected boost in the long term, saying a 40-strong conference from Germany for May had postponed its confirmation because it was “not comfortable” with the prevailing situation in the Mediterranean.

“We have tried to reassure them we are EU members but it seems the Libyan jet fighters on our runway have perpetuated a worrying image. Malta is coming across well but visitors may opt to avoid any perceived risks.”

The Palace and Victoria hotels in Sliema also experienced the influx, with an uncharacteristic 100 per cent occupancy for the off-peak month, though both properties were already quite busy, business development director Mario de Celis said.

The Grand Hotel Excelsior hosted a number of journalists, pilots and crew, expatriates from embassies and even soldiers, experiencing an average increase in occupancy of about 25 per cent from last Wednesday.

It might not have been a full house but most of its 439 rooms were occupied, its sales and marketing manager, John Messina, said. “It was not expected but once we started receiving queries, we geared up for it.”

Mr Messina acknowledged the situation for the industry could be reversed in the long term but also that it was still “touch and go”.

Island Hotels Group Holdings, which has three hotels, had to refuse requests, marking a “significant pick-up” for the period even though rates were not hiked.

“In February, we would normally run at about 40 to 50 per cent but for about six days we were booked up,” said its CEO, Winston J. Zahra.

He expected the situation to revert to normality now the evacuees had found flights out. Acknowledging that any kind of forecast was tough because of the fluidity of the situation – and that it was “sad” to be discussing business picking up due to turmoil in neighbouring countries – Mr Zahra said the situation for the industry could swing either way.

On the one hand, Malta stood a higher chance of being chosen as a holiday destination when compared to countries with a similar offer but too much trouble in Libya could mean tourists would be nervous to travel.

“The danger lies in whether Malta could be perceived to be much closer to Libya than it is and also in any military action. We could have a fantastic couple of months ahead but also some issues, depending on what happens.”

For the Westin Dragonara Resort, the increase in occupancy was minimal, with some last-minute bookings, changes and cancellations, but “nothing out of this world”, according to its sales and marketing director Edward Bonello.

The perception that every hotel was overflowing was overrated in his view and any positive repercussions on the industry would be short term, while the situation could be “threatening” in the near future.

“We have already had clients, especially from the US and northern Europe, asking if Malta has been affected by the uprising, thinking it is a five-minute drive from Libya,” Mr Bonello said.

While the Westin has not experienced cancellations, it has received queries about whether the island is inundated with immigrants and if it is safe.