By the end of this year, Malta will likely see yet another record number of tourists visiting its shores. This has been the trend almost every year, except the COVID-19 years, Malta consistently registering higher tourist numbers than the preceding year. 

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Many expect 2024 to be the year to break all records, and while the numbers do look like they represent a significant increase over the previous year, it is unlikely to match the increase registered between 2022 and 2023 as the world put the pandemic behind.

Given the strong numbers so far this year, I was surprised while speaking to the owner of a popular bar in Mgarr, Gozo, who insisted that this summer hadn’t been good for business. The claim surprised me because, perhaps like many others, I would have assumed that more tourists meant pretty much more business for basically everyone on the island. 

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A look through the National Statistics Office data on inbound tourism did shed some light on the issue, but it didn’t really answer my primary question: do higher tourist numbers still guarantee that most bar and restaurant owners will do well?

What the data shows

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By most measures, this year looks similar to previous ones, only with inflated figures: more tourists by mid-year, roughly the same average spend as last year, and a continuing trend of tourists spending fewer nights in Malta.

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So, was this bar owner’s testimony an outlier, or is there something more significant at play? One hypothesis is that Malta has gradually shifted from being a family holiday destination to a more of a party or short-stay island. This hypothesis is supported by the fact that stays are getting shorter while spending remains consistent. The increase in tourist numbers has compensated for their shorter stays, maintaining overall spending levels.

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If such a shift has occurred, it remains obscured by how the National Statistics Office (NSO) collects and presents its data. The lowest age bracket, 0-24 years, encompasses both young people traveling with their parents and 21-year-olds on a three-day bender abroad. This broad categorisation masks any nuanced shifts in the type of tourists visiting Malta. A move towards a younger, party-oriented demographic could explain why some businesses see less revenue despite higher tourist numbers. While families are likely to explore various parts of the islands and spend money on diverse activities, partygoers may concentrate their spending in areas like Paceville bars.

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Tourism is one of Malta’s main economic drivers, providing a livelihood to a significant portion of the population. It is a sector of national importance, without which the country would struggle to provide many essential services. For this reason, the strategy we adopt for developing our tourism product is critical. Malta’s national tourism strategy, which aims to guide the sector until 2030, outlines several goals, including diversifying the tourism product to encompass wellness, sports, and adventure tourism. The strategy also emphasizes a shift from quantity to quality, focusing on attracting high-value tourists rather than merely increasing visitor numbers.

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However, it appears that we have failed to implement this strategy effectively. Instead of diversifying and enhancing our offerings, we have merely inflated what already existed. At worst, we have positioned Malta as a party island with some cool activities—if you’re not too hungover. This approach risks undermining the country’s broader appeal and reducing tourism to a narrow experience that may not sustain long-term growth.

Decline in non-holiday travel 

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Data supports this concern. While holidaymakers are flocking to Malta in greater numbers, business and non-leisure visits are on the decline. The proportion of tourists coming for holidays has risen from 84% to 91%, while those visiting for business or other reasons have dropped from 9% to 5%. This decline suggests that Malta’s efforts to position itself as a hub for conferences, sports tourism, and other business-related activities may not be yielding the desired results. As a result, the island might need to rethink its strategies to attract and retain this lucrative segment of the market.

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As Malta reaches the milestone of welcoming 1,000,000 non-EU tourists in 2024, it’s clear that the dynamics of our tourism sector are changing. While these figures may seem encouraging, they also highlight the growing need to reassess our tourism strategy. The dominance of younger, party-focused visitors suggests that Malta’s appeal may be narrowing, potentially sidelining other valuable segments like families and business travellers.

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To ensure the sustainability and long-term success of our tourism industry, Malta must focus on attracting higher-value tourists and offering a more diverse range of experiences. Our national tourism strategy, with its emphasis on quality over quantity, provides a strong foundation, but it must be effectively implemented. By broadening our appeal and enhancing our tourism offerings, Malta can continue to thrive as a top destination while preserving the unique character and culture that make our islands special.