Issue link: https://maltatoday.uberflip.com/i/1485686
4 NEWS 24.11.2022 In the three years preceding the COVID-19 pandemic, Malta recorded a current account surplus averaging 5.5 per cent of GDP, underlined by a strong service net export balance. However, the COVID-19 pandemic negatively impacted the current account balance leading to a current account deficit in 2020 and 2021. During the first quarter of 2022, Malta has similarly recorded a current account deficit, although this has decreased significantly from the previous quarter by 4.1 percentage points. current account INTERNATIONAL Hotel Investments is expecting to generate €232 million in revenue for all its hotels and other op- erations in 2022, €8 million more on the figure announced in August. Revenue for the year is expected to be 84% of the 2019 level and is being driv- en by IHI-owned hotels. On the expenditure side, the hospi- tality industry continues to be impact- ed by payroll cost pressures. IHI is not immune from these pressures and con- tinues to focus on keeping these under control, including by keeping staff num- bers below those of 2019 where wage inflation exists. Cost pressures also ex- ist in the development area, where IHI has investment projects in the pipeline. Overall, hotel performance continues to develop well. Average daily rate im- provement has been registered across the group. e Corinthia Hotel London managed to exceed its 2019 perfor- mance on the strength of higher aver- age room rates. However, hotel revenues in St Peters- burg have been seriously impacted as a result of the fall-out from the Ukraine crisis and performance at the group's conference-oriented hotels in Prague and Budapest continues to be impacted by the slower return to normality being experienced in this conference market. is market is however expected to show growth in 2023. e performance of the non-hotel business segments is encouraging. QP is on track to register a record perfor- mance. EBITDA is forecast at €49.1 million for 2022 and is based on volume increases as business returns. Cost focus and dis- ciplines introduced during the Covid period have been retained to maximise the flow through to the bottom line. During the year, due to the evolving situation in and around the Russian market, the group settled the bank loan on its property in St Petersburg. Whilst naturally impacting on the group's cash flows, this transaction has also had the beneficial effect of removing exchange rate volatility which the group had ex- perienced over these past years due to this facility. e group is focused on increasing the number of non-owned hotels under management. Management contracts have the benefit of requiring limited investment of group resources, in con- trast to projects owned by the group. Importantly, such agreements are proof of the increased recognition of the Corinthia Brand, which will be one of the drivers of future growth in revenue and earnings. Furthermore, to maxim- ise the group's ability to increase its ho- tel management business, a new 4-Star brand will be launched in 2023. Hotels • In Doha, a Yacht Club which is being operated by Corinthia is being launched this month. is management agree- ment is part of a wider agreement for the management of Corinthia branded residences and apartments and a 110 key 5 Star luxury Corinthia hotel which are currently in development. • Works on the luxury Corinthia Hotel Rome are ongoing with a targeted late- 2023 opening. e group expects to see this project generating income for the Group from Q1 2024 onwards. • Works on the luxury Corinthia Hotel Bucharest are ongoing with a targeted late-2023 opening. e group expects to see this project generating income for the Group from Q1 2024 onwards. • Construction works on the luxury Corinthia Hotel New York are proceed- ing to plan, with its opening targeted for late 2023. e group expects to see this project generating income for the Group from Q1 2024 onwards. Two major Corinthia investment pro- jects are in development: • Works on the Corinthia Hotel Brus- sels are advanced. e group expects to see this project generating income for the Group from Q2 2024 onwards. IHI owns 50% of this project. • In Malta, preparatory works on the luxury Corinthia Oasis project at Gold- en Bay are progressing. Planning per- mits are expected to be in hand in early 2023. is project is fully owned by the group. IHI Group forecasting €232 million in revenue for 2022 DURING the third quarter of 2022, 446 building permits for a total of 2,092 new dwellings were approved. e number of approved new dwell- ings decreased by 3.3 per cent when compared to the same quarter of the previous year. Dwellings approved in Malta decreased by 7.3 per cent while those approved in Gozo and Comino increased by 15.0 per cent. Apartments made up 71.1 per cent of the total number of approved new dwellings. e highest number of approved new dwellings (198) was registered in Ħal Qormi. Approved residential building permits and dwellings During the third quarter of 2022, 446 building permits for a total of 2,092 new dwellings were approved. When compared to the correspond- ing quarter of 2021, the number of building permits increased by 2.1 per cent while the number of ap- proved new dwellings decreased by 3.3 per cent. e average number of approved new dwellings per building permit stood at 4.7. Approved new dwellings by type e majority of new dwellings ap- proved during the third quarter of 2022 were apartments (1,488), fol- lowed by penthouses (348), maison- ettes (177), terraced houses (58) and other residential units1 (21). Approved new dwellings by district When compared to the correspond- ing quarter of 2021, the number of new dwellings approved in Malta decreased by 7.3 per cent while the new dwellings approved in Gozo and Comino increased by 15.0 per cent. e highest number of approved new dwellings was registered in the North- ern Harbour district (738) while the lowest number was recorded in the Western district (140). Approved new dwellings by locality e highest number of approved new dwellings were issued in Ħal Qormi (198). is was followed by Il-Mosta (96), Ta' Sannat (88), Birkir- kara (86) and San Pawl Il-Baħar (80). 446 building permits approved in Q3 2022 The Corinthia Grand Hotel Astoria, Brussels is expected to open in 2024