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Malta Outpriced By Competitor Holiday Islands

With a flight time of over three hours from their main market, Malta has always had a starting disadvantage compared to her main holiday competitors of Spain and her islands.

But Malta does appeal to visitors from the British Isles who want a holiday in the Mediterranean with a location that speaks English and drives on the left.

And for this both the islands of Malta and Cyprus fit the bill.

Malta is a slightly shorter flying time from the UK than Cyprus, but critically the UK has a large Greek Cypriot community able to urge friends and work colleagues to take a first holiday to the island.

But critically Cyprus has beaten Malta on price in recent years, and a recent report by the World Economic Forum indicates that 2007 will see no change. Indeed the report says that as well as Cyprus, Greece, Portugal and Spain are all set to be cheaper for UK holidaymakers than Malta this year.

The report says as well as price, Malta's environment acts as a deterrent to many potential tourists.

The report comes as a surprise to many on the island as low cost flights started in November 2005 from London's Luton Airport, and in February from Dublin with Ryannair, while competitor Air Malta have a new route from Liverpool.

Some 85,000 extra tourists could be visiting Malta in 2007 due to the new low cost routes, and anything below this figure will be disappointing for the island's hotels and holidays industry.

Property Prices Up

With the arrival of more holidaymakers, the possibility of increased property sales to overseas buyers becomes more of a reality.

A UK company specialising in Malta property, agree that property prices could rise in 2007.

'With lower fares, Malta becomes a destination viable for 3 and 4 days trips a few times a year from the UK, and that will attract buyers to look at Malta in the same way they do France and Spain when considering where to buy a holiday home abroad. The weather in Malta and low fares could be a magnet for buyers.'

There is a warning however from a travel guide that property prices on the island might not necessarily escalate in the same way that regions of France have seen when low cost airlines have started flying to their region.

'The Malta government has allowed more land to be used for property, and we anticipate a lot more apartment blocks being built short and medium term. Supply might well meet demand. Unless the Malta map changes politically and with it a change of policy towards her environment, there is a danger of Malta becoming the Tower Hamlets of the Mediterranean, or 1970's Spain where development spoiled much of the coast.'

Concern has also been expressed on the island about the infrastructure, with some tourists and potential property investors berating the state of the roads and - compared to mainland European and UK standards - dangerous construction sites.

'The real winners from the low cost flights could be the Malta hotels rather than the property industry', conclude the Malta holiday guide. 'We envisage a lot more people taking short three and four day Malta holidays, often booking their flights and hotels on the internet rather than via a traditional high street travel agent chain'.

Seed Newsvine

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