Hotels, citing the current uncertainty, are urging the Government to continue to help with incentives and supplements as they predict that it will take between three and four years for tourism to reach last year’s levels. This emerges from a survey conducted by EY in connection with the impact that Covid19 has had on the sector. During 2019, 2.8 million tourists visited Malta, which together generated € 2.2 billion in the country’s economy, 17% of the Gross Domestic Product (GDP).
However, the pandemic and the closure of airports have led, as in other countries, to hotels not only losing all revenue but are also expecting to incur heavy losses this year. The report states that bookings have been cancelled or postponed not only until the end of June but also for the following months. Uncertainty about the pandemic, including when a vaccine will be found and when markets will reopen, continues to raise concerns among hoteliers who all agree that the country needs to review its tourism product. Although most hoteliers have welcomed the Government’s incentives, they expect for these to continue as for the situation to improve this depends on the opening of the airport.
The report shows that hoteliers are demanding more flexibility in labour laws and more tax incentives to enable them to overcome this period.