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Still Room To Grow? Prime Minister Challenges Malta Hotel Lobbyist’s Overcapacity Warnings

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Prime Minister Joseph Muscat has played down concerns by the head of the Malta Hotels and Restaurants Association that the island’s hospitality sector is approaching saturation point.

MHRA President Tony Zahra recently urged people thinking of investing in Maltese hotels to set their eyes elsewhere, warning that a number of proposed developments will lead to a glut of supply and a potential race to the bottom as hoteliers seek to undercut each other.

“There’s going to be overcapacity and everybody is just going to undercut each other,” he said. “Those who haven’t yet made the investment and who are still in time to pull out should do so and invest their money elsewhere.”

However, Muscat challenged this assertion last weekend when inaugurating Rosselli – AX Privilege, Valletta’s first five-star boutique hotel.

The Prime Minister said that while tourist arrivals and expenditure have continued to increase, the government is now focusing on attracting high-spending tourists.   

“Malta is being marketed as a place that has something to offer for everyone in every season of the year,” he said. “Luxury tourism is becoming an extremely important niche, a high class offering in a beautiful setting. There are already 22 fully operational boutique hotels in Valletta with eight more works in progress and we’d have missed this market altogether if our hospitality sector had not been upgraded.”

“My message to everyone in this sector is to continue to invest in hospitality and quality. As a government, we will continue to see that our infrastructure is up to scratch, from Air Malta to the road network [project] aimed at making Malta more accessible.”

READ NEXT: Former 17th Century Palazzo Is Now Officially Valletta’s First 5-Star Boutique Hotel

Tim is interested in the rapid evolution of human society and is passionate about justice, human rights and cutting-edge political debates. You can follow him on Instagram or Twitter/X at @timdiacono or reach out to him at [email protected]

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