PwC Malta Middle Market Barometer www.pwc.com/mt/barometer

www.pwc.com/mt/barometer
PwC Malta
Middle Market
Barometer
Tourism
December 2015
Middle Market Barometer 1
The recruitment of trained staff is the major
concern of the Hospitality sector
PwC Malta’s latest barometer focuses on the tourism sector, an
industry that continues to be a significant contributor in the
local economy. This barometer confirms recently published
official statistics that convey a positive outlook for the sector.
The barometer considers the views of over 40 hotels and 100
restaurants, which represent the respective star-category and
geographical areas, was carried out through telephone calls in
October - following the summer’s busy period.
51% of hoteliers consider that the increase in tourist numbers
landing in Malta are reflected in an increase in averagespend and bed night per tourist, with hotels in St Julian’s
experiencing this most. When analysed by star-category,
5-star hotels are the category that is indicating the strongest
performance. By contrast, only 45% of restaurants believe
that the increase in tourist numbers is triggering an increase
in revenue per patron. Again, restaurants in St Julian’s at 56%,
followed by the ones in Valletta - at 53%, are the most upbeat.
Only 20% of restaurants in Gozo and the south of Malta report
that the surge in tourist numbers contributed to an increase in
the average spend per person.
A more consistent parallel emerges when the participants were
interviewed on their views on the extent of business reported
in the off-peak season. 76% of the hotels stated that the 2015
shoulder months fuelled more business than the respective
2014 months. In percentage terms, hotels in St Julian’s, at
90%, have experienced this effect mostly. Restaurants too
fared better during the off-peak months of 2015 - and Valletta,
appears to be the area that felt the largest turnaround, a clear
indication that Valletta continues to become a more popular
entertainment hub.
Hotels and restaurants owners were also asked on their plans
for the next 6 months in terms of investment and recruitment.
44% of the hoteliers interviewed plan to recruit more staff
over the next months, whilst 46% plan a significant capital
investment. The strongest investment and recruitment signals
emanate from the St Julian’s area and 5-star category hotels.
46% of restaurants plan to hire staff as opposed to 48% who
have no such plans. 6% are unsure.
PwC 2
Capital investment plans by restaurateurs are more contained
than those of hoteliers – where only 36% plan a capital
investment in the next 6 months.
The ability or actual inability to recruit trained staff is the
top concern expressed by both hotels and restaurants.
Participants were asked to rate their top business anxiety. A
significant 56% of hotels and 46% of restaurants consider
that labour market is short of resources who are willing to
pursue a career in the hospitality industry. Other top common
concerns emerge to be the incidence of VAT and the level of
maintenance and investment in the country’s infrastructure.
Hoteliers and restaurateurs were asked to indicate what
recommendation to put forward to policy makers. 33% of
hoteliers interviewed would endorse further investment in the
country’s general infrastructure. 27% consider that further
efforts need to be made to safeguard Malta’s environment.
Other recommendations put forward by hotels point towards
improvement in the educational system (18%), marketing
of the Maltese islands (12%) and accessibility (10%). The
wish list of restaurateurs is generally consistent with that of
hoteliers. 32% solicit a greater investment in accessibility, 19%
consider that there is more scope to market further the Malta
product abroad and further 16 % and 9% have indicated the
country should aspire to invest more in its infrastructure and
environment respectively.
PwC’s latest barometer also assessed the outlook ahead of the
next six months. 85% of the hotels hold a favourable outlook.
Only 2% are pessimistic – with the rest unsure. Hotels in
Valletta and St Julian’s and all those in the 5-star category are
overwhelmingly upbeat. 68% of the restaurants interviewed
expressed a positive outlook, 16% indicated a negative outlook
and the other 16% are unsure.
The full results of the barometer are disclosed below and are
available on-line on www.pwc.com/mt/barometer
Do you consider that the increase in numbers of tourist numbers arriving
in Malta is mirrored by an increase in bed nights and average-spend
per tourist?
Hotels (increase in average spend)
Hotels (increase in bed nights)
2%
Not Sure
12%
No
25%
Not Sure
51%
Yes
45%
Yes
86%
24%
No
Yes
Hotels (split by geography)
Increase in Average Spend
Increase in bed nights
Yes
No
Not sure
Yes
No
Not sure
-
50%
50%
100%
-
-
Sliema
46%
31%
23%
85%
15%
-
St.Julians
90%
-
10%
80%
10%
10%
Valletta
33%
33%
34%
67%
33%
-
Central and north
50%
22%
28%
89%
11%
-
Overall
51%
24%
25%
86%
12%
2%
Locations
Gozo
Hotels (split by star category)
Increase in Average Spend
Increase in bed nights
Yes
No
Not sure
Yes
No
Not sure
3 Star
31%
38%
31%
85%
15%
-
4 Star
46%
27%
27%
85%
12%
4%
5 Star
90%
-
10%
90%
10%
-
Overall
51%
24%
25%
86%
12%
2%
Stars
Middle Market Barometer 3
Restaurants ( increase in average spend)
Restaurants
Increase in average speed
45%
Yes
55%
45%
Yes
No
Yes
No
Gozo
20%
80%
Sliema
50%
50%
South
20%
80%
St.Julians
56%
44%
Valletta
53%
47%
Central and north
52%
48%
Overall
45%
55%
Has there been an increase business in the 2015 off-peak season when
compared to the prior season?
Hotels
12%
Not sure
12%
No
76%
Yes
76%
Yes
PwC 4
Hotels (split by geography)
Positive
Negative
Not sure
Positive
Negative
Not sure
Locations
Locations
Central and north
72%
11%
17%
3 Star
54%
23%
23%
Gozo
50%
50%
-
4 Star
81%
12%
7%
Sliema
77%
8%
15%
5 Star
90%
-
10%
Overall
76%
12%
12%
St.Julians
90%
10%
-
Valletta
67%
-
33%
Overall
76%
12%
12%
Restaurants
2%
Not sure
41%
41%
Yes
No
57%
57%
YesYes
41%
57%
76%
Yes
No
Not Sure
Restaurants
Positive
Negative
Not Sure
Gozo
59%
37%
4%
Sliema
40%
60%
-
South
56%
44%
-
St.Julians
53%
47%
-
Valletta
75%
25%
-
Central and north
53%
40%
7%
Overall
57%
41%
2%
Middle Market Barometer 5
Plans for the next six months
Hotels (Recruit more staff?)
Hotels (Undertake a considerable capital investment)
31%
31%
Not sure
Not sure
44%
46%
Yes
Yes
23%
25%
No
No
Hotels ( split by geography )
Undertake a considerable capital
investment?
Recruit more staff?
Yes
No
Not sure
Yes
No
Not sure
Gozo
25%
25%
50%
Sliema
23%
38%
39%
50%
-
50%
23%
38%
39%
St.Julians
80%
20%
-
50%
20%
30%
Valletta
67%
-
33%
33%
33%
34%
Central and north
Overall
35%
41%
24%
41%
41%
18%
44%
31%
25%
46%
23%
31%
Hotels ( split by star category )
Undertake a considerable capital
investment?
Recruit more staff?
Yes
No
Not sure
Yes
No
Not sure
3 Star
15%
62%
23%
38%
31%
31%
4 Star
48%
20%
32%
44%
20%
36%
5 Star
70%
20%
10%
60%
20%
20%
Overall
44%
31%
25%
46%
23%
31%
PwC 6
Restaurants - Recruit more staff?
Restaurants - Undertake a considerable capital investment
6%
2%
Not Sure
Not Sure
36%
48%
46%
Yes
No Yes
48%
46%
No
62%
No
Yes
Restaurants
Undertake a considerable capital
investment?
Recruit more staff?
Yes
No
Not sure
Yes
No
Not sure
Gozo
30%
60%
10%
30%
60%
10%
Sliema
61%
39%
-
33%
61%
6%
St.Julians
63%
31%
6%
63%
31%
6%
Valletta
27%
60%
13%
27%
60%
13%
Central and north
48%
44%
8%
37%
63%
-
Overall
46%
48%
6%
36%
62%
2%
Middle Market Barometer 7
Major concerns for hotels
4%
3%
Emergence of new holiday
destinations
Turmoil in the Mediterranean region
8%
Urbanisation
of the country
16%
Level of investment
in National infrastructure
53%
Recruitment of trained staff
16%
Taxation (VAT)
and Utility Bills
PwC 8
Recruiment of trained staff
53%
Taxation ( VAT ) and Utility Bills
16%
Level of investment in national infrastructure
16%
Urbanisation of the country
8%
Emergence of new holiday destinations
4%
Turmoil in the Mediterranean region
3%
Major business concerns for restaurants
2%
Patterns in cruise line industry
2%
Urbanisation of the country
5%
Turmoil in the Mediterranean region
9%
Emergence of new
holiday destinations
12%
Level of investment in
national infrastructure
46%
Recruitment of
trained staff
24%
Taxation (VAT) and
Utility Bills
Recruitment of trained staff
46%
Taxation ( VAT ) and Utility Bills
24%
Level of investment in national infrastructure
12%
Emergence of new holidays destinations
9%
Turmoil in the Mediterranean region
5%
Patterns in the cruise line industry
2%
Urbanisation of the country
2%
Middle Market Barometer 9
Business concerns for hotels by location
Business concerns for hotels by location
Central and
North
Gozo
Sliema
St.Julians
Valletta
-
-
8%
-
-
Level of investment in national infrastructure
28%
0%
-
30%
0%
Urbanisation of the country
10%
-
7%
0%
33%
Taxation ( VAT ) and Utility Bills
6%
25%
31%
0%
33%
-
-
8%
10%
34%
Turmoil in the Mediterranean region
Emergence of new holiday destinations
Recruitment of trained staff
56%
75%
46%
60%
-
Overall
100%
100%
100%
100%
100%
Area which needs investment and attention of the policy makers so as to
maximise Malta’s potential as a tourist destination
Hotels
12%
Marketing
33%
Infrastructure
27%
Environment
10%
18%
Accessibility
Education
Hotels (by geography)
Central and north
Gozo
Sliema
St.Julians
Valletta
Total
Infrastructure
33%
75%
31%
30%
-
33%
Accessibility
11%
-
15%
-
33%
10%
Education
11%
25%
23%
20%
33%
18%
-
8%
30%
34%
27%
-
23%
20%
-
12%
Environment
Marketing
PwC 10
6%
Hotels (by star category)
3 Star
4 Star
5 Star
Accessibility
15%
Infrastructure
38%
Accessibility
10%
Education
15%
Accessibility
8%
Education
20%
Environment
31%
Education
19%
Environment
30%
Infrastructure
23%
Environment
23%
Infrastructure
30%
Marketing
16%
Marketing
12%
Marketing
10%
Restaurants
3%
Bureaucracy
16%
16%
Infrastructure
Infrastructure
16%
21%
Infrastructure
Marketing
32%32%
Accessibility
Accessibility
19%
19%
Environment
Environment
9%
9%
Education
Education
(by geography)
Central and
north
Gozo
Sliema
South
St.Julians
Valletta
Total
Infrastructure
15%
20%
17%
7%
25%
13%
16%
Accessibility
33%
20%
39%
33%
19%
40%
32%
Bureaucracy
7%
-
6%
-
-
-
3%
Education
7%
10%
6%
-
13%
20%
9%
Environment
15%
10%
16%
33%
25%
13%
19%
Marketing
23%
40%
16%
27%
18%
14%
21%
Middle Market Barometer 11
What is your outlook for the next six months?
Hotels
2%
13%
Negative
13%
the same
the same
85%
85%
85%
Positive
Positive
Positive
Hotels (split by star)
Hotels (split by geography)
Positive
Negative
Same
Central and north
78%
-
22%
Gozo
50%
-
Sliema
85%
St.Julians
Valletta
Overall
Positive
Negative
Same
3 Star
92%
-
8%
50%
4 Star
73%
4%
23%
8%
7%
5 Star
100%
-
-
100%
-
-
100%
-
-
Overall
85%
2%
13%
85%
2%
13%
Locations
Stars
Restaurants
16%
the same
16%
Negative
68%
68%
Positive
Positive
PwC 12
Restaurants (by location)
Positive
Negative
Same
Central and North
67%
11%
22%
Gozo
50%
30%
20%
Sliema
83%
11%
6%
South
60%
33%
7%
St.Julians
69%
13%
18%
Valletta
73%
7%
20%
Overall
68%
16%
16%
Middle Market Barometer 13
www.pwc.com/mt/barometer
#PwCMarketBarometer
Contact
Follow us on:
David Valenzia
Partner
+356 21 2564 7292
[email protected]
Copyright © 2015 PricewaterhouseCoopers. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal
entity. Please see www.pwc.com/structure for further details.
PwC 14