Tourism ‘will be last to recover’

Malta’s tourism is set to be the worst-hit sector in the aftermath of the COVID19 pandemic, according a report released this week.

Thirty-six industry experts were interviewed as part of the 141-page study, known as the ‘Agile Report’.  

It describes the tourism industry as going into ‘survival mode’ after the airport was put on lockdown last month and all entertainment outlets were closed. The research, carried out by Investment Management Agency Seed, looks at the effects of the pandemic on various sectors.

The resurgence of the tourism sector is dependent on a number of factors, it says.

“Apart from Malta reopening its own airport, the tourism industry is dependent on other airports opening up and also on the willingness of people to fly and go on holidays. The fear element, especially if a second wave of COVID-19 starts, will have a lasting impact on the propensity to travel.”

The report also highlights how financially overdrawn those who have businesses linked to tourism already are.

It notes that hotel profits had plateaued in 2018 because of the rise in alternative accommodation, such as Airbnb. “With no revenues, companies will be stretched to the limit especially those...