The hotel industry seems to have finally emerged from the slump that started in 2008, with key indicators showing growth and optimistic prospects for room rates in all hotel categories.

These results emerged from the latest Deloitte survey, which is carried out every quarter on behalf of the Malta Hotels and Restaurants Association. It shows that tourist arrivals in 2013 were up 9.6 per cent, with Spain being the only market to decline. There was also very strong growth from the smaller markets, which together showed an increase of 22 per cent.

Private accommodation took more than 44 per cent of the increase

Occupancy levels also helped to boost hotel profitability, increasing by two per cent, 1.5 per cent and 6.9 per cent for the 5-star, 4-star and 3-star categories respectively. In fact, guest nights grew by 8.7 per cent, good news for the sectors that benefit directly or indirectly from tourism.

However, Raphael Aloisio, who presented the results on behalf of Deloitte, pointed out that private accommodation took more than 44 per cent of the increase. “When we talk about the increase in arrivals and so on, we must be careful as the assumption is that this translates into a commensurate increase in the performance for hotels,” he said.

Since much of the private accommodation is unlicensed and represents a surge in consumer-to-consumer online booking, hotels are not competing on a level playing field, Alexis Waravka, a speaker from Hotrec, said during the discussion, stressing that this was a European phenomenon and not just a Maltese one. Hotels’ gross operating profit showed a mixed picture. The average achieved room rate for 5-star hotels stood at €111.8, more than twice that of the 4-star sector. The gross operating profit per room, which takes into account not only the rate but also the occupancy, was €12,469, €6,887 and €2,723, for the 5-star, 4-star and 3-star categories respectively, a considerable improvement over the 2009 figures of €7,514, €4,475 and €1,226.

And the industry is seeing better things to come. Four in every five 5-star hotels believe that rates will be much better (17 per cent) or better (67 per cent), while 75 per cent of the 4-stars think they will be better. The 3-star category was also optimistic with nine per cent thinking rates would be much better and a further 55 per cent saying they would be ‘better’.

The picture was not as rosy when it came to occupancy, with 58 per cent of 5-stars saying that occupancy could be better, and only 40 per cent of 4-stars saying that.

MHRA council member Julian Diacono said that for the first two months of the year 72 per cent reported better rates by February and an overall increase in bookings for March, April and May, unevenly spread across the hotel categories.