MHRA President Tony Zahra: ‘The trick is to get higher-spending tourists’

Speaking at an event attended by many hospitality industry stakeholders, Malta Hotels and Restaurants Association (MHRA) President Tony Zahra stated that to make Malta's tourism economy more resilient, the trick is getting higher-spending tourists.

His comments were made at the MHRA BOV Deloitte Q4 2024 Hospitality Performance & European Hospitality Industry and Investment Survey Presentation held on Monday (yesterday).

"You’re always going to have someone do it cheaper than you, but not always better,” he said, reiterating the need for higher-spending tourists.

“We have to ensure that our industry is resilient and sustainable,” Mr Zahra added.

The MHRA President dismissed artificial intelligence as a silver bullet for the hospitality industry, insisting instead that the real differentiator remains well-trained staff. “The silver bullet is hospitality,” he affirmed, and urged stakeholders to invest in workforce training.

He also called for product improvement, advocating for continuous enhancement of Malta’s tourism offerings.

Mr Zahra concluded by reinforcing the need for a high-value tourism model. “If we do it better, we can generate better revenue,” he remarked, calling on all industry players to enhance service excellence, efficiency, and product quality.

Higher-spending tourists a key priority

The sentiment was echoed by Malta Tourism Authority (MTA) CEO Carlo Micallef, who noted that MTA is focusing its marketing efforts on attracting high-value visitors from affluent regions such as Tokyo, North America, and the Middle East.

Mr Micallef highlighted recent advertising campaigns, including the Monza Rally in Italy, aimed at driving interest in the Maltese islands among high-spending travellers.

A record-breaking year for tourism

The Deloitte study, commissioned by MHRA and presented at the event, revealed that Malta attracted 3.56 million tourists in 2024, an increase of 19.5 per cent compared to 2023. These visitors spent a total of €3.3 billion, a 23.1 per cent rise year-on-year.

Despite this increase in spending, the average length of stay declined by five per cent, indicating a shift towards shorter but more expensive trips. Additionally, the average daily spend per tourist increased by 7.5 per cent to €141.91.

The hospitality sector saw higher occupancy rates overall, with three-star hotels experiencing the largest increase, rising by 4.4 percentage points year-on-year.

Deputy Prime Minister and Minister for Tourism Ian Borg highlighted the Government’s commitment to promoting Malta as a “world-class destination” while also preventing over-tourism.

“As tourism grows, so do challenges,” Dr Borg noted, and urged hoteliers and tourism operators to invest in environmental sustainability, AI-driven systems, and high-quality premium services to secure the industry's long-term future.

Looking ahead, the Deputy Prime Minister reiterated the need for all stakeholders to continue investing in Malta’s tourism product, with a focus on quality, digital transition and sustainability. “Maltese hotels have an opportunity to attract the growing number of eco-conscious travellers by enhancing their sustainability practices. As a Mediterranean destination, embracing environmentally responsible tourism can become a unique selling point,” he concluded.

MEP Daniel Attard, a member of the European Parliament’s Committee on Transport and Tourism, warned that Malta is at a crossroads and must avoid sending “mixed messages” regarding its tourism strategy. He urged policymakers to align their actions with the stated goal of prioritising quality over quantity.