The viability of investing in accommodation establishments in the south eastern region of Malta

Abstract

This research will analyze the attractiveness, for investors, of the South Eastern Region (Ix- Xlokk) of Malta, in particular the viability of this location for investment in new accommodation establishments. The first chapter outlines the background of this research and briefly explains the main objectives of this study. Subsequently, the next chapter will focus on examining the literature regarding the importance of the location for an accommodation establishment, by identifying the factors that link the location to financial success. The next chapters will focus on analyzing the primary data that was gathered. The research was conducted by interviews with: local representatives of the region, investors in the region and tourists in the area. Successively, a survey regarding the local residents of the region was conducted, in order to assess the current irritation index towards tourism. This study concludes that the local representatives would like to see new forms of accommodation establishments in their localities, in particular small scale accommodation establishments, such as boutique hotels and guest houses. This shows that there is a positive environment for investment. Investors in the region which include accommodation establishments' owners and restaurant owners, evaluated the area from a business perspective. This study shows that the locality of Birzebbuga attracts a considerable number of business tourists, due to its accessibility. Tourists in the area identified the negative and positive aspects of the region and the majority of them stated that they would stay in this region during their next visit to Malta. Finally, the results of the survey with the local residents concluded that the irritation index is low. This means that the local residents have a positive perception towards tourism in the area. The main conclusion of this study is that there are indeed opportunities for investment, particularly in small-scale accommodation establishments in the South Eastern Region of Malta.