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Abstract

This study analyses historic developments in Malta’s tourism industry, focusing on the changing characteristics of demand and supply. The recent surge in inbound tourism appears to be largely driven by increased air connectivity to and from Malta. The advent of low-cost carriers is considered an important positive supply shock on the local sector. At the same time, the sustained shift towards stays in private accommodation can be partly explained by changing preferences, but also by capacity constraints in collective accommodation establishments. Moreover, the paper discusses the economic importance of tourism for the Maltese economy. It also examines the issue concerning sustainable growth of the sector and seeks to draw some policy inferences.

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Creative Commons Attribution-Noncommercial 4.0 License
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