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MALTATODAY 25 November 2018

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9 maltatoday | SUNDAY • 25 NOVEMBER 2018 NEWS Patrons are requested to be seated by 17:45 Dress code: Smart casual St Paul's Pro-Cathedral Valletta MOTETS & MADRIGALS FROM SACRED TO PROFANE on the occasion of their launch concert, kormalta would like to invite you & a guest to GET YOUR TICKETS FOR FREE www.kulturamalta.mt MATTHEW VELLA HIGH population density and burgeoning tourism numbers are being viewed as a risk by fi- nancial advisors penning pro- spectuses for bond issues in the tourism industry. In one recent bond issue for the nascent Gillieru hotel group, the investment advisors warn against Malta's tourism product being undermined by rising population numbers. With Malta's population now at 460,000, the island's popu- lation ratio is already signifi- cantly higher than the Euro- pean average. "The progressive increases in tourist arrivals registered in Malta over recent years are contributing to higher in- fluxes of tourists in relation to resident population [so] the relationship between volume growth and value growth is becoming increasingly impor- tant in Malta, particularly as Malta's tourism performance has been on the high side when compared to other European destinations," one of Malta's top financial advisors warns. "The size of our islands puts us at a greater risk if not man- aged well. The smallness of our islands and our very high- density levels constitute sev- eral challenges, which must be well managed. There is a risk that government's policies and allocation of funds will fail to successfully mitigate the issues emanating from these chal- lenges. This would adversely affect tourism performance, especially the hotel sector." The advisors also warn that labour force supply is pos- ing a major challenge for the tourism sector. As the Maltese economy continues to expand and diversify, native workers are encountering "expanding employment options" which has left the tourism industry losing out. "A career in tourism seems to be losing popularity to alterna- tive employment options. The hospitality sector is not always Population growth risks endangering the Maltese tourism product considered as providing attrac- tive career opportunities, es- pecially as more lucrative and financially rewarding sectors have developed in recent years, that are more appealing than tourism and hospitality. "As a result, it is becoming increasingly difficult to engage personnel when and as re- quired and this may erode rev- enues because of lost business and hampered growth. The lack of human resource supply could also fuel unsustainable increases in pay, which would affect the industry's profits and erode Malta's overall competi- tiveness." And with Brexit now becom- ing a more tangible reality, ho- tels may be affected by a weak sterling due to Maltese op- erator business in the winter, which is a particular important season for hotels in the north of the island. "The ramifications af- fecting the tourism sec- tor following Brexit are still relatively un- known. Issues affect- ing British travelling to Malta, such as the open skies poli- cy which represents one of the most significant benefits for the tourism sec- tor, are amongst the important matters… A negative outcome can adversely affect the local tour- ism sector, given that the Brit- ish market remains one of the most important source mar- kets." "The ramifications af- fecting the tourism sec- tor following Brexit are still relatively un- known. Issues affect- ing British travelling to Malta, such as the open skies poli- cy which represents one of the most significant benefits for the tourism sec- tor, are amongst the important matters… A negative outcome can

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