The effect of tourism on the Maltese economy

Abstract

This study considers the role of tourism in the local economy between 1960 and 1980. Its contribution to total output, income and employment, and its impact on imports are evaluated. Chapter I describes briefly the economic structure of Malta before the first Development Plan of 1959 and the part played by Tourism up to that year. Chapter II examines the role of the tourist industry, as stated in the five Development Plans, from two aspects: (a) Objectives and Policies, (b) Capital Allocations by the Public and Private Sectors. Chapter III considers the economic impact of tourism on the local economy. Factors considered include: (1) Tourist Arrivals, (2) Foreign Exchange Earnings, (3) Import Content, and (4) Employment. The current problems are also discussed. Chapter IV analyses some causes leading to the present slump in Tourism, including the prices charged by hotels and tourist-related establishments, the shortcomings in the infrastructure and the exchange rate policies. Chapter V proposes suggestions which could assist this Industry in overcoming its present difficulties.