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BUSINESSTODAY 6 February 2020

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06.02.2020 3 NEWS FROM PAGE 1 is means that, although tourist numbers and guest nights are on the rise, the majority of these increases are being registered within the alternative accomodation sector. In an interview carried in last week's BusinessToday, Malta Hotels and Res- taurants Association chief Tony Zahra warned of this very same trend and said that services such as Airbnb were of enormous concern to the industry. In 2018 and 2019, tourists spent 10,081,852 and 10,068,632 total nights respectively in collective accommoda- tion, while the figures for the two years in the case of private accommodation stand at 5,429,361 and 6,162,148 total nights respectively, indicating a drop in the share of nights spent in hotels and a strong rise in those spent in facilities such as those advertised on Airbnb. Figures issued by the Malta Tour- ism Authority on Wednesday reflected this trend. ey indicated that, in 2018 1,651,398 tourists had stayed in ho- tel accommodation, with this rising to 1,709,966 in 2019 - an increase of just over 58,000 tourists. However, the rise in those staying in private accommodation was consid- erably greater - in 2018, 614,480 tour- ists stayed in Airbnb or other similar accommodation types, but this rose to 714,157 in 2019, an increase of almost 100,000. e contribution to tourism by private accommodation is beyond expectations and operators in the industry believe that such alternative services will out- shine the hotel sector in 2020. Industry insiders who spoke to Busi- nessToday believe that this has provid- ed a new revenue-generating opportu- nity for families who own such Airbnb properties, affording them direct in- creases in their purchasing power. In his interview, Zahra, who does not own a hotel, vehemently argued that private accommodation is unregulated and presents unfair competition. He also spoke about the inconvenience Air- bnb units caused to other residents in the apartment block. Nonetheless, private accommodation is being sought after because it is more competitive and also cheaper. Respondents to surveys have talked of private accommodation as being more authentic. Furthermore, the private accommoda- tion model fits more in the profile of the visitor to the Maltese Islands who seeks a short, three- to four-day break. e trend also defeats arguments for pro- moting six-star hotels in Malta. Private accommodation introduces visitors to a more authentic feel of the Maltese Islands and society in general. Moreover, because many of the private accommodation are located in areas out of the busy touristic areas, it is argued that they add a new dimension to a trav- eller's experience in Malta. With the daily spend of €115 per day for every tourist, the distribution of pri- vate accommodation out of the tourist zone has contributed to a resurgence or presence of entertainment and catering establishments out of the tourist ghet- tos and also other multiplier effects. Operators have said that the advent of low-cost airlines and private accom- modation was inevitable, with RyanAir welcoming 2,439,915 passengers to the island in 2017, the highest for any air- line ever, and considerably more than Air Malta, which welcomed 2,034,472 passengers that year. Private accommodation expected to outperform hotel sector in 2020 The contribution to tourism by private accommodation is beyond expectations and operators in the industry believe that such alternative services will outshine the hotel sector in 2020 MHRA's Tony Zahra considers alterantive accomodation such as Airbnb to be 'a serious threat' to the tourism industry

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