Exploring the economic, environmental and social impacts in relation to the introduction of superior luxury hotels in Malta

Abstract

This paper was set out to analyse systematically parameters of hotel classification, and explore economic, environmental and social impacts that may arise from the introduction of superior luxury hotels in Malta. The gap concerning hotel classification was vital for the Industry and international academic research since there is no current official distinction between five and six-star hotels. This rationale was developed to contribute towards forthcoming six-star hotel investments in Malta by Corinthia Group and Intercontinental Malta.

The research aimed to address deficiencies by superimposing Malta as an envisioned quality-driven destination. Academic material was analysed to understand different ideologies on the subject matter. Eventually, the research perused primary data through semi-structured interviews with elite stakeholders.

General findings suggest that Malta’s record breaking inbound tourism figures are mostly viewed from an economic perspective; however, there was unanimity regarding the need to mitigate seasonality. Furthermore, findings demonstrate that six-star hotels must differentiate themselves through the level of service by offering exclusivity and personalisation. Nonetheless, the increase in tangible quality was regarded as important since it complements clientele overall experience. Stakeholders asserted that the local classification system must emulate renowned hotels such as Burj Al Arab in Dubai.

Additionally, superior luxury hotels would have positive outgrowth if the physical environment and current infrastructure were modernised to match such improvements. Six-star hotels would be targeting low numbers of high-paying guests while reducing environmental and social degradation. Through this business model, investors may increase their profit margins while promoting a better way of living.

Finally, the research was influenced by different perspectives on six-star hotels as the next natural step in Malta. Various positive recommendations were based on the upscale ripple effect of these establishments. However, many were apprehensive about the big leap in quality and incremental improvements in the local environment and infrastructure. Hence, the respective authorities must work in sync with investors to create the best possible outcome.