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Tourism Lobbyist Fenech: Parties and Youth Tourism Are Crucial for Maltas Economy
August 15 2024 14:30 by PCLMedia
In response to recent calls by the Malta Hotels and Restaurants Association (MHRA) to shift focus from concerts and youth tourism towards attracting older, higher-spending tourists, tourism lobbyist Philip Fenech has offered a different perspective.
Fenech, the Deputy President of the Chamber of SMEs, emphasized to Lovin Malta that Malta's tourism landscape is not solely defined by its party scene. “It’s often said that Malta is turning into an Ibiza, but that’s not accurate,” Fenech stated. “While we do see a surge of youth and party events during the summer, our tourism industry operates year-round with varied segments.”
He acknowledged the significant economic contribution of concerts and youth tourism, even if they don’t always offer luxury experiences. “Although these events may not be considered five-star experiences, their impact on the economy is considerable,” he said. “Malta’s tourism market thrives on a diverse mix of segments, and the key is managing them effectively without harming others.”
MHRA President Tony Zahra recently expressed concerns about declining occupancy rates in five-star hotels during peak summer months, attributing this to Malta’s emphasis on parties and events that attract younger, lower-spending tourists.
Fenech, however, argued that the tourism model has simply evolved, with five-star hotels now seeing higher occupancy during the winter months rather than the summer. He pointed out that events like the Glitch Festival, which is expected to draw 14,000 visitors and inject approximately €15 million into the Maltese economy, demonstrate the substantial economic benefits of youth and music tourism. Similarly, the ongoing SummerDaze Festival, featuring Sam Smith, is anticipated to attract significant crowds.
Fenech also highlighted the need for more strategic investment in Malta’s hospitality sector to address market gaps. “Our economy has grown from €7 billion to €14 billion, leading to increased business and consumer confidence and rapid expansion,” he explained. “During this growth phase, the availability of accommodation dictated tourist numbers. However, as the economy has cooled, we must recognize that this rapid expansion cannot continue indefinitely.”
He noted that businesses now face heightened competition, and only those with distinctive offerings will thrive. Investment should be targeted to fill market gaps, such as entertainment for over-40s, rather than pursuing repetitive models.
Additionally, Fenech stressed the importance of enhancing “tourism support services” such as electricity, drainage, and water systems, improving beach maintenance, bolstering national police and hospital resources, and streamlining delivery systems in tourist areas.
“We are at a point where we need to manage our resources, observe market corrections, and consolidate investments,” he said. “It’s essential that no single lobby group or business assumes the entire economy revolves around them. With diverse investments and offerings, we need to continue improving our product and allow natural market adjustments to occur.”
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