Forty four per cent of hoteliers plan to recruit more staff over the next months while 46 per cent plan a significant capital investment, according to PwC Malta’s latest barometer which focuses on the tourism sector. The strongest investment and recruitment signals emanate from the St Julian’s area and five-star category hotels. Forty-six per cent of restaurants also plan to hire staff.
Hotels and restaurants owners were asked on their plans for the next six months in terms of investment and recruitment.
PwC Malta’s latest barometer confirms recently published official statistics that convey a positive outlook for the tourism sector. The barometer considers the views of over 40 hotels and 100 restaurants, which represent the respective star-category and geographical areas, and was carried out through telephone calls in October following the summer’s busy period.
Capital investment plans by restaurateurs are more contained than those of hoteliers and 36 per cent plan a capital investment in the next six months. The ability or actual inability to recruit trained staff is the top concern expressed by both hotels and restaurants. When participants were asked to rate their top business anxiety a significant 56 per cent of hotels and 46 per cent of restaurants consider that the labour market is short of resources who are willing to pursue a career in the hospitality industry. Other top common concerns emerge to be the incidence of VAT and the level of maintenance and investment in the country’s infrastructure.
The survey shows that 51 per cent of hoteliers consider that the increase in tourist numbers landing in Malta are reflected in an increase in average-spend and bed night per tourist, with hotels in St Julian’s experiencing this most. When analysed by star-category, five-star hotels are the category that is indicating the strongest performance.
In contrast, only 45 per cent of restaurants believe that the increase in tourist numbers is triggering an increase in revenue per patron. Again, restaurants in St Julian’s at 56 per cent, followed by the ones in Valletta – at 53 per cent, are the most upbeat. Only 20 per cent of restaurants in Gozo and the south of Malta report that the surge in tourist numbers contributed to an increase in the average spend per person.
Hotels in Valletta and St Julian’s and all those in the five-star category are overwhelmingly upbeat
A more consistent parallel emerges when the participants were interviewed on their views on the extent of business reported in the off-peak season. Seventy six per cent of the hotels stated that the 2015 shoulder months fuelled more business than the respective 2014 months.
In percentage terms, hotels in St Julian’s, at 90 per cent, have experienced this effect mostly. Restaurants too fared better during the off-peak months of 2015 – and Valletta appears to be the area that felt the largest turnaround, a clear indication that Valletta continues to become a more popular entertainment hub.
Hoteliers and restaurateurs were also asked to indicate what recommendation to put forward to policy makers. Thirty-three per cent of hoteliers interviewed would endorse further investment in the country’s general infrastructure. Twenty-seven per cent consider that further efforts need to be made to safeguard Malta’s environment.
Other recommendations put forward by hotels point towards improvement in the educational system (18 per cent), marketing of the Maltese islands (12 per cent) and accessibility (10 per cent). The wish list of restaurateurs is generally consistent with that of hoteliers. Thirty-two per cent solicit a greater investment in accessibility, 19 per cent consider that there is more scope to market further the Malta product abroad and 16 per cent and nine per cent have indicated the country should aspire to invest more in its infrastructure and environment respectively.
PwC’s latest barometer also assessed the outlook ahead of the next six months. Eighty-five per cent of the hotels hold a favourable outlook. Only two per cent are pessimistic – with the rest unsure. Hotels in Valletta and St Julian’s and all those in the five-star category are overwhelmingly upbeat. Sixty-eight per cent of the restaurants interviewed expressed a positive outlook, 16 per cent indicated a negative outlook and the other 16 per cent are unsure.