Malta: Business and tourism location shows further Upswing for 2024
Malta International Airport (MIA) announces € 250 million investment programme until 2028
The gross domestic product (GDP) growth of the EU’s southernmost country is projected to reach to 4.0% in 2023, and to ease slightly to 3.8%, and 3.7%, in 2024 and 2025, respectively.
Still, these figures show that Malta’s economic growth is forecast to remain robust with an inflation rate projected to moderate to 3.3% in 2024 and 3.1% in 2025.
Malta's economy will be buoyed by the country's tourism sector and will comfortably outperform the euro area. Challenges include the rising cost of living and still-high energy prices.
Malta International Airport (MIA) expects 7,8 million passengers in 2023
The overall positive trend for the Maltese islands as tourist destination is confirmed by the latest record figures shown by MIA. Tourism has experienced a surge in performance following the COVID-19 pandemic.
In response to this, the new investment programme for MIA is set to deliver a number of upgrades, allowing the airport to operate in a more efficient and safe manner, even handling further record passenger figures in the coming years.
The initial phase of the Terminal Expansion Project will create space for additional immigration desks on arrival, a reconfigured baggage claim area, as well as a new Schengen arrivals route.
The next phase will see the development of an area of around 100,000 square metres to improve the airport’s parking capacity and its ability to better handle mixed-fleet operations. Another key element of the investment programme will be the installation of a three-megawatt peak photovoltaic farm, massively raising MIA’s clean energy generation capacity. This will be complemented by the overhaul of the airport’s heating, ventilation, and air-conditioning systems.
Additionally, the programme will see an upgrade of the airport VIP product, with the La Valette lounge at departures to be extended and the VIP Terminal to undergo a revaluation overhaul, offering added privacy and convenience for guests travelling through this separate building.
MIA record turnover and pre-tax profit in 2023
During the first nine months of 2023, MIA recorded a pre-tax profit of €49.9 million, 47.7 per cent more than the figure from the same period last year. The airport expects its total revenue in 2023 to reach € 118 million.
The backbone of future positive developments will be the new investment programme, totalling € 250 million for the period stretching from 2023 until 2028.
Further hotel enhancement projects in Malta
A number of new hotel construction projects and hotel renovations is also continuing picking up speed on the Maltese islands.
These include the Melia Hotel International Brand, an international chain, new in Malta with 3 hotels, located in the St. Julian’s area, the redevelopment of the Ramla Bay Resort, located in the North by the limits of Mellieha, a new Hilton Hotel directly on the seafront, overlooking sea views and St. Paul’s Island as well as the rebranding of Seashells Hotel to ODYCY Hotel, a multifaceted hotel and leisure destination dominating the coastline of Qawra, on the North Eastern side of Malta.
Phoenicia Group, owning and operating The Phoenicia Malta, a five-star hotel located in Floriana, nearby the Valletta Citygate, the prominent entrance to Malta’s capital city, just announced the issuing of a € 50 million 5,75 per cent bond 2028-2033 for the further enhancement of the group’s hotelier activities. The Phoenicia Malta first opened its doors in 1947 as a luxury hotel, and it boasts 136 newly refurbished guest rooms.
Thus, the tourism segment will remain a vibrant contributor to the further development of the Maltese islands’ future.
We at Kresse International Law Firm and Kresse Malta & Maritime Experts (KME) closely follow the new trends and developments to be at the forefront of quality consulting for our entrepreneurial clientele.