Repeated warnings from the tourism industry that more hotels on the islands will harm the tourism sector are being ignored by government, as research by The Shift reveals the Planning Authority is considering permits for at least 99 new hotels.
The applications are concentrated in Valletta, Sliema, St Julian’s and Gozo, areas that are popular with tourists. The Malta Tourism Authority continues to approve applications despite warnings from the Malta Hotel and Restaurants Association (MHRA) only last week.
The hotel industry is already struggling to fill beds at good rates, with the country mostly attracting low-budget tourists. MHRA President Tony Zahra described the situation as “complete madness” and urged the government to do something before it’s too late.
Zahra, a veteran in the field, did not mince his words when addressing industry stakeholders last week.
He said the Malta product was losing its shine, with problems of overcapacity now in full view. The country has been experiencing persistent problems with sewage, power cuts, claustrophobic traffic, noise pollution and packed beaches.
This situation, Zahra warned, was a recipe for disaster.
New hotels in the pipeline
Research conducted by The Shift on Planning Authority data, based on the response to a parliamentary question, shows that until the start of 2023, the Planning Authority was considering permits for 99 new hotels.
Sliema, St Julian’s and Gozo were the areas attracting the most interest, with 14 new hotels proposed in each locality.
This is followed by other locations such as Valletta (9 new projects), Gzira (5), Mellieħa (5), St Pauls’ Bay (7). New hotels are also being proposed in other areas.
Even the prime minister has entered the market with a new boutique hotel in Gozo.
€45 for a 4-star hotel room
MHRA President Tony Zahra said last week that four-star hotels were becoming so desperate they were selling rooms at just €45 per night in November.
He told hoteliers they needed to and act before it was too late.
According to a carrying capacity exercise by Deloitte in 2022, Malta needs to attract 4.7 million tourists by 2027, each staying under seven nights, to prevent oversupply.
Malta currently attracts around 3 million tourists annually, which already causes a significant strain on the country’s infrastructural resources.
A recent Malta Chamber report also indicates that, when accounting for inflation, tourists visiting Malta in 2023 spent less per capita than in 2019, further underscoring the need for sustainable growth.
For sustainable tourism, quality vs quantity, we have unfortunately surpassed the balance and now its all about quantity. Hard to reverse this trend and to marginally sustain all these beds (present and future) probably the authorities will have to revoke all short let holiday apartments and rooms (ie AirBnB).
The Planning authority considering applications for at least 99 new hotels!
Wow, exciting prospects indeed. How many of them will be floating out at sea?
how many will be made apartments after few years
The MHRA must know that it is illegal under EU law to somehow impede competition which means that every European hotel chain have the right to build and operate a hotel in Malta.
Besides any EU citizen have the right to come anytime he wants.
If the MHRA wants to protest it must protest with the EU Commission for not applying the EU’S Principal of Proportionality law on Malta .
Coincidentally, I read this online article a few days ago.
“Money Laundering/ Terrorist Financing in the hospitality industry is gaining grounds and its activities are attracting criminals to use these avenues…
Money could be laundered via the hotel business by operating a “black” hotel. The criminal buys a bit of prime land. Cash is paid for the land and a five-star luxury-hotel resort is built. The hotel is then furnished with the best furniture, cutlery, china, linen. From then on the hotels and bungalows are full up, except that nobody ever stays in them. If a travel agent calls: sorry, we’re fully booked. On daily basis cash from room rentals, bungalow rentals, the restaurants, the casinos, the nightclubs and bars are sent to banks for deposit. After a couple of years, the resorts are in perfect shape to be sold with a brilliant trading record.
…
Another way money can be laundered through the hotel is when the criminal books and pays online for hotel rooms for a number of his business partners but cancels the booking due to some reasons. The Hotel manager will be compelled to refund the money (after charging a cancellation fees) by issuing a cheque or draft to the criminal. Some criminals will even request for the cheque to be written in the name of a third party.”
After all that’s been going on, it makes you wonder, doesn’t it?
https://www.linkedin.com/pulse/mind-criminal-through-hospitality-industry-richieson
the same happens with the apartments that they rent, but which in reality are empty, they only serve to have residency and live in other better states in Europe, since in Malta nobody checks the minimum stay of 6 months on the island, in any sector there is rottenness..
Why doesn’t this damned Government listen??? Is the PA blind, deaf, dumb? When is enough, enough for goodness’s sakes???? The situation with our infrastructure, is dire, with continuous power cuts, and problems with sewage!
Greed has no limit. The only way to stop is by self destruction. The government is part of the problem. There is no return back. Only disaster will dictate us to change direction.
..and that’s beside getting the personnel to run them….TCN FOR SURE!