Tourists visiting Malta spent a whopping €1.3 billion last year, according to a survey by the Malta Hotels and Restaurants Association.

This marks a nine per cent increase from 2011, when €1.2 billion was spent, and an 18.8 per cent when compared to 2010.

Last year also saw a two per cent rise in arrivals and a 7.8 per cent surge in guest nights, despite a negative first quarter, the survey by Deloitte showed.

The average length of stay increased by 4.8 per cent to 8.7 nights from 8.3 nights.

Although hotels did not register significantly different occupancy rates from 2011, "private accommodation" reported a 16.2 per cent increase - a point of concern for MHRA since such accommodation is unlicensed. Guest houses, hostels and tourist villages registered an increase of 22.3 per cent.

However, the three hotel categories (three, four and five star) registered improved "average achieved room rates" which enabled them to finally surpass the levels registered in 2008, before the economic crisis. Gross operating profit per available room also returned to the positive 2008 levels despite increased overheads.

Meanwhile, Malta International Airport reported an increase of eight per cent in January arrivals this year compared to 2012.

This was especially due to huge increases from Libya (45.6 per cent), Belgium (40.9 per cent) and Italy (17.75 per cent) which offset decreases from Spain (-34.9 per cent), United Arab Emirates (-11.3 per cent) and Germany (-0.2 per cent).

Occupancy in January was also up 1.3 per cent among all hotels, with a significant 16 per cent increase for three star hotels.

President Tony Zahra pointed out that accessibility to Malta was the key to the island's success. He stressed, however, that the hotel industry has registered a cumulative net loss of €10 million between 2006 and 2011.

He advised hoteliers not to lower their rates because 2013 was likely to be another record year thanks to increased seat capacity planned for the summer months.

Turning to next week's election, Mr Zahra praised the Government for achieving a €1.12 billion deal with the EU despite a cut to the overall EU budget.

However, Mr Zahra reiterated MHRA's clear message to politicians: Increase arrivals during shoulder months, lower utility rates by four cents per kilowatt and reduce VAT back to five per cent.

He said MHRA also wanted an "effective and efficient" cabinet leading a lean government structure as well as independent public institutions spearheaded by "competent officers who are well trained" and selected by a Board Resourcing Office within the Office of the Prime Minister.