The Malta Hotels and Restaurants Association (MHRA) presented the MHRA BOV Deloitte Hotels Performance Review for Q1 and Q2 of 2022 at the AX The Palace Hotel in Sliema.
MHRA President Tony Zahra stated that the economic recovery from COVID times for the hospitality sector is now gaining momentum yet there are other challenges which are emerging, amongst other those related to climate change, the war, global inflation and shortage of skilled staff. Mr Zahra specifically referred to connectivity and the challenges that the aviation industry is facing right now, the chaos at all airports and the inability of the airline industry to ramp up staffing levels to meet the strong demand.
MHRA President stated that, “Going forward we shall be facing huge taxes given the EU’s insistence on cutting fossil fuels by charging huge taxes on fuel which given Malta’s peripheral location could mean an extra 60 euros per passenger tax.”
Mr Zahra asserted that collectively we have to work towards a sustainable tourism, travel and hospitality industry and we must do this through innovation. “Indeed we need to train people to be innovative and smart – that will define our industry for the future”.
MHRA BOV Deloitte Q1 & Q2 2022 Key highlights
After a difficult first quarter, tourist arrivals gained momentum in Q2 and reached 86% of 2019 levels for the quarter. On a cumulative basis, tourist arrivals for the first six months of the year reached 75% of 2019 levels.
Average length of stay in 2022 was marginally higher than that registered in 2019 and enabled cumulative guest nights to reach 78% of 2019 levels.
Tourist average daily spend reached €109, which is 2.5% below the level of spend registered in 2019. Total tourist expenditure in the period January to June 2022 reached 76% of that achieved in the comparable period in 2019.
At 25.4%, 5-star occupancy levels in Q1 were more than 50% below the levels recorded in 2019. The strong pick up in Q2, enabled 5-star hotels to reach 62.1% occupancy, 80% of the 2019 levels. Occupancy levels for the first half of the year reached 67% of 2019 levels.
In Q 1 4-star hotels registered occupancy levels of 40% or 67% of 2019 levels. In Q2 occupancy levels reached 81.8% or 8% below 2019 levels. At 64%, occupancy levels for the period January – June were 80% of 2019 levels.
Participating 3 start hotels recorded an average occupancy level in Q 2 of 78.9% or 9% below 2019.
5-star hotels reported an average daily room rate of €117.7 in Q1, which was on par with the rate registered in 2019. In Q2, reported ADR increased to €198 or a 12% increase over the rates registered in 2019.
The €49.3 rate in Q1 and the much stronger rate of €89.2 in Q2, enabled 4 star hotels to surpass the rates achieved in the first six months of 2019 by 4%.
In Q2, participating 3-star hotels nearly attached the average rates achieved by 4-star hotels and reported a rate of €72.9, which was 2.5% below 2019.
The strong occupancy pick up in Q2, coupled with a fairly strong room rate, higher food and beverage spend, sustained covid supplement (up to May 2022), and tight control over overheads enabled 5-star hotels to contain their decline in GOPAR to 12.5% below 2019 levels for the 1st six months of the year
For similar reasons as those highlighted for 4-star hotels, 4-star hotels managed to achieve a GOPAR 0f 79% of the GOPAR reported in the first half of 2019.