Claudine Attard, CPA,FCCA,MIA
This article provides a personal overview of Malta’s hospitality performance throughout 2025, combining official NSO data, MHRA/Deloitte hotel performance surveys, and industry insights. All data is current up to August 2025. Official results for September had not yet been published at the time of writing.
2025 performance: strength and stability through summer
The tourism industry has maintained its growth momentum in 2025, though expansion is now stabilising after the sharp post-pandemic rebound. According to the NSO’s August 2025 release (NR 173/2025), Malta welcomed 2,681,635 inbound tourists between January and August 2025. These visitors spent 16.9 million nights and generated €2.56 billion in tourism expenditure – already surpassing the corresponding 2024 period.
Table 1 – Inbound tourism 2024 (full year) vs 2025 (January – August)
| Indicator | 2024 (FY) | 2025 (Jan – Aug) | Change |
| Inbound Tourists | 3,563,618 | 2,681,635 | +3.3 % YoY pace |
| Guest Nights | 22.9 million | 16.9 million | ≈ +3 % YoY |
| Tourism Expenditure | €3.29 billion | €2.56 billion | +22 % YoY |
| Spend per Tourist | €924 | €956 | +3.5 % |
| Average Length of Stay | 6.4 nights | 6.3 nights | Stable |
(Sources: NSO NR-173/2025 and NSO NR-021/2025)
August 2025 was a record month, with 470,643 visitors (+11.5 % YoY) and €547.6 million in spending. If the same pace continues through the shoulder months, Malta’s total arrivals for 2025 are expected to exceed 3.8 million and total tourism receipts approach €3.C billion.
Traveller behaviour and market shifts
Five clear behavioural changes define Malta’s current tourism landscape:
- Shorter, more frequent holidays. Four- to five-night trips dominate bookings
- Younger travellers. The 25–44 age group now forms over 60 % of total arrivals.
- Value-driven spending. Tourists spend more in total but remain cautious per night.
- Digital dependence. Most bookings are made through OTAs or direct online channels.
- Lower repeat visitation. Around three-quarters of tourists are first-time visitors.
This shift means hotels must focus on yield management, experience differentiation, and direct booking strategies rather than chasing raw occupancy.
Hotel performance: robust at the top, tight margins below
The MHRA/Deloitte Hotel Performance Surveys (Ǫ1–Ǫ2 2025) show strong results for luxury and upper-midscale properties, with profitability pressure in smaller independent hotels.
| Segment | Occ% Ǫ2 | Avg. % Occ H1.202 5 | ADR Ǫ2 (€) | ADR Avg. H1. 2025 (€) | GOPPAR Trend Ǫ2 | GOPPAR Trend H1.2025 | Comment |
| 5★ Hotels | 78.4% | 65.6% | 237.7 | 201.40 | +21.6% | +18.7% | Luxury maintained rate strength and profits. |
| 4★ Hotels | 91.5% | 81.7% | 113.6 | 90.40 | +17.7% | +16.8% | Best-performing tier; balanced demand and costs. |
| 3★ Hotels | 90.6% | 87.3% | 80.5 | 62.60 | -23.4% | -86.6% | Payroll +20 %; margins compressed. |
(Source: MHRA/Deloitte Hotel Performance Survey Ǫ1 & Ǫ2 2025)
These results confirm that profitability now depends more on ADR strategy and cost control than on occupancy.
Pipeline and capacity growth
New accommodation supply remains a defining issue for Malta’s hospitality sector.
| Category | Rooms | Beds (approx.) | Status | Source |
| Approved Projects | 13,543 | 27,672 | Permits granted (as of Apr 2024) | MHRA/Deloitte Future Proofing Report 2024 |
| Additional in Planning | 8,000 – 10,000 | ≈16,000 – 20,000 | Applications pending or under review | Maltatoday, 27 May 2024 |
If all these developments eventually open, Malta’s room stock could nearly double by 2030, requiring around 4.5 million annual arrivals (according to Tourism Analytics article dated 08/11/2024) to sustain current occupancy levels.
This underscores the importance of matching expansion with realistic demand growth and improving profitability per guest.
Under 2025 trends, Malta International Airport (MIA) continues to register record traffic, surpassing 1 million passengers in July 2025 alone with a seat load factor of around 89.6%. If the industry were ever to reach 4.4 – 4.8 million tourist arrivals annually — as implied by some pipeline absorption scenarios — the resulting transport and service- infrastructure pressure would be unsustainable without major upgrades.
At today’s connectivity and capacity levels, such volumes would push Malta’s airport, transport network, and tourism ecosystem beyond optimal operational thresholds. This reinforces the need for a balanced growth strategy that aligns bed-stock approvals and air-service expansion with realistic, sustainable demand forecasts.
The economic importance of hospitality
Tourism and hospitality continue to serve as a cornerstone of the Maltese economy, directly and indirectly supporting thousands of jobs, SMEs, and foreign investment.
According to the Malta Economy Report 2024, tourism remains a major pillar, contributing around 15 % of national GDP and benefiting from Malta’s rich historical sites, Mediterranean climate, and strong cruise ship industry.
In 2024 alone, tourist expenditure reached approximately €3.3 billion, equivalent to about 14.6 % of GDP. This confirms that hospitality is not just a sector but a strategic foundation of Malta’s economy, and sustaining its competitiveness is essential for the country’s long-term prosperity.
This confirms that hospitality is not just a sector but a strategic foundation of Malta’s economy, and sustaining its competitiveness is essential for the country’s long-term prosperity.
Operating challenges in 2025
- Labour & Skills. Around 60 % of hospitality workers are foreign; recruitment remains a constraint.
- Cost Inflation. Payroll, energy, and food prices continue to rise.
- Infrastructure. Malta International Airport handled over 1 million passengers in July 2025 alone, reaching near-capacity.
- Environmental Responsibilities. The EU Green Deal and local waste-energy targets require significant investment in upgrades.
- Air Connectivity Concentration. Roughly 46 % of arrivals depend on a single carrier (Ryanair).
Strategic focus – Profit over occupancy
International research highlights that profitability now depends on revenue mix and cost efficiency rather than occupancy levels:
“Occupancy is no longer the metric to focus on to maximise revenue.Cost efficiency, ADR strategy, and the right business mix are what truly drive GOPPAR.” – Hotel Management (U.S.), April 2024
For Maltese hotels, this means focusing on:
- GOPPAR as the key profitability measure.
- Optimised ADR mix through dynamic and segmented pricing.
- Tighter cost management, especially for payroll and utilities.
- Tech-enabled forecasting and control tools.
- Sustainability as a financial and reputational advantage.
The outlook to 2030 — managing growth responsibly
Strategic forecasts and assumptions
According to Malta’s National Tourism Strategy 2021 – 2030 (Tourism.gov.mt, p. 14): “Best-scenario forecasts until 2030 suggest an optimistic maximum of 3 to 3.2 million tourists generating an average 21 million overnight stays.
It is likely that lower estimates will probably prevail. If all currently licensed bed-stock plus beds in the pipeline become operational by then (circa 100,000 beds / 3C.5 million available bed-nights), the resulting bed occupancy would be an unprofitable 57.5%.”
This official projection underscores that supply growth far exceeds realistic demand forecasts. To safeguard profitability, the industry must shift focus from expansion volume to yield management, market diversification, and operational efficiency.
Scenarios for 2026 – 2030
| Scenario | Average Arrivals | Implication | Key Levers |
| Base Case | 3.8 – 4.2 million per year | ADR gains and cost control offset moderate occupancy easing. | Domestic efficiency, improved segmentation. |
| Optimistic Case | 4.4 – 4.7 million per year | Stable occupancy if long- haul markets (e.g. U.S.) and connectivity grow. | New routes, experiential tourism, infrastructure investment. |
| Conservative Case | 3.5 – 3.8 million per year | Margin compression from price competition, mainly in mid-market hotels. | Strong cost discipline, repositioning. |
Policy and industry direction
To sustain quality growth:
- The MTA is already diversifying market mix and air connectivity, including a direct New York–Malta route in 2026 targeting higher-yield travellers.
- Marketing priorities are shifting from mass summer events to culture, heritage, and gastronomy, aligning with higher-spend niches.
- Responsible expansion should continue, ensuring that new projects complement not oversaturate the market.
- Industry players, financial advisors, and policymakers should collaborate on transparent data sharing and consistent performance reporting.
Improving reporting and transparency
Regionalised MHRA reporting
Aggregating ADR and occupancy across the entire country masks local realities. Hotels in Valletta or St Julian’s operate in a very different market from those in Mellieħa or Ǫawra.
Breaking down MHRA performance surveys by location and product type would provide more accurate benchmarks for owners, advisors, and investors.
USALI-based reporting aligned with GAPSME / IFRS
The sector should adopt the Uniform System of Accounts for the Lodging Industry (USALI), tailored to align with Malta’s accounting frameworks (GAPSME for SMEs and IFRS for larger groups).
This would:
- Standardise departmental revenue and expense reporting.
- Enhance comparability across operators.
- Improve transparency for lenders and investors.
- Enable MHRA and advisors to build a consistent national benchmarking model.
Conclusion — from volume to value
As of October 2025, Malta’s hospitality industry remains robust but stands at an important crossroads.
Tourism growth continues, yet margins are tightening under rising costs and increasing room supply.
The years leading to 2030 will determine whether Malta becomes a model for sustainable, profitable tourism, or a case study in oversaturation.
Future success will depend on:
- Smarter pricing and cost discipline,
- Regional transparency in reporting, and
- Alignment of local accounting with USALI, GAPSME, and IFRS principles.
The message is clear: Malta’s next stage of growth must be built not on how many come, but on how well we perform when they do.
Data Sources: NSO NR-173/2025 – Inbound Tourism August 2025 · NSO NR-021/2025 – Inbound Tourism December 2024 · MHRA/Deloitte Hotel Performance Survey Ǫ1 and Ǫ2 2025 · MHRA Future Proofing Report 2024 · MaltaToday 27 May 2024 · Hotel Management April 2024 · Malta Tourism Strategy 2021–2030 · Malta International Airport Traffic Updates 2025 · Malta Economic Data C Projections – Focus Economics · Malta Business Weekly – Does tourism really account for 25% of the Maltese economy?
