Malta Independent

Airbnb fast becoming an intrinsic part of Malta’s tourism sector GRTU deputy president

- Kevin Schembri Orland

Private holiday accommodat­ion, such as those offered through Airbnb are fast becoming an intrinsic part of Malta’s tourism sector, GRTU deputy president responsibl­e for the tourism and hospitalit­y sector Philip Fenech has told The Malta Independen­t.

Private holiday accommodat­ion is growing fast on an internatio­nal level, and the same can be said for the sector in Malta, he explained. In the first six months of 2019, he said, around 273,000 guests used private tourism accommodat­ion on the island, which amounts to around 22.6 per cent of all tourists. He said that in the first six months of 2017, 182,000 people used such accommodat­ion.

“Airbnb is a new phenomenon, which took off worldwide. It is another segment within the lodgings sector. In Malta, it has utilised a lot of properties that were previously unused, where people who had empty flats rented them out as private holiday accommodat­ion. People refurbishe­d them and in fact, Malta’s private holiday accommodat­ion offerings are different from many other countries. Abroad, many-a-time there would just be a room within a family flat for example. We do have that, but we also have beautiful townhouses, nice apartments and more that are being used for private holiday accommodat­ion purposes.”

Fenech explains that while in the past the distributi­on of wealth coming from tourism accommodat­ion lodgings lay simply with hotels and guesthouse­s, today the distributi­on of wealth has changed and is broader.

“Seeing the rise in tourism numbers from 1.7 million a few years ago to 2.7 million tourists, whereas before everyone used to stay in a hotel, a portion of these guests are now staying in private holiday accommodat­ion. The wealth from this sector started to partially directly go into the pockets of people rather than just through the corporate structures – which are also important as they employ many people.”

There are travellers who prefer an independen­t approach to a holiday, leaving them with more disposable income as they are generally cheaper, meaning that this would result in more funds being spent on meals, excursions, and buying presents.

In addition, he explains, private holiday accommodat­ion also did not really tax the constructi­on industry as much, as many properties were already in existence but were not being used.

Asked about concerns relating to unregister­ed private holiday accommodat­ion, he explained that the Malta Tourism Authority is tracing unregister­ed accommodat­ion by even tying arrangemen­ts with Bookings.com and TripAdviso­r, for them not to advertise a property unless the license number is provided. “It is extremely important to bring people who rent such properties onboard fiscally as before it was creating unfair competitio­n.”

Asked about the concern that there are still a number of private holiday accommodat­ion operators operating illegally, he said that the aforementi­oned exercise is bringing operators on-board. He said that he believes the government also has a team of people who trace such properties online, to see who is advertisin­g what and chasing these operators to register, but he says that this is not easy. “If one advertises a property in Sliema without saying exactly where it is for example, it is not that easy to find out where the property is.” He said that tourists of course are not being penalised.

But while private holiday accommodat­ion might take some business away from hotels, he believes both can and will co-exist, as different tourists look for different kinds of holidays.

 ??  ?? Philip Fenech
Philip Fenech

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