2005 to 2006 was a very bad period for Malta; The Mediterranean island’s economy relies heavily on tourism and, in its bid to achieve the adoption of the euro and acceptance of the nation as a major member of the European Union, the Maltese government got distracted during this period and left the slide of the tourism industry.
The government was also reluctant to expand its aviation policy to allow in low-cost operators from the UK, Ireland, Italy and Germany and, as a result, fewer tourists arrived in 2006 and the property market in Malta, which is also dependent on largely from the tourist trade. stalled with an oversupply of real estate stocks that had a negative impact on investors considering entering the market.
Fortunately, a number of events have taken place to turn around Malta’s fortunes and, looking ahead to 2007, everything looks very positive for the real estate market and the travel and tourism industry in Malta.
Local citizens who depend on travel and tourism generated income for a living responded quickly to the decline in tourist traffic, lobbied the government to allow cheap flight operators in, and their efforts also resulted in the government announcing a 40% increase in quantity. will invest in the industry in 2007. Prior to this commitment and effort, the World Travel & Tourism Council frighteningly predicted that the Maltese government would only increase investment by 0.3% over the next ten years.
Cheap flight operators have forced Air Malta, the national airline, to become equally competitive and in 2007 there are predictions of an increase in tourist traffic. There are no two ways about it, Malta will become easily and cheaply accessible, which means that today’s tourist who inevitably becomes tomorrow’s holiday or retirement home hunter will consider Malta because they know they can come and go frequently by little money and a good selection of flights. available.
As soon as visitors begin to arrive in large numbers, as they are expected to do in 2007, more people will realize the great appeal of Malta, which in turn will increase the demand for rental accommodation and resale properties. , which means that an investor has high profits in Malta from the 2007 prizes.
Malta has so many positives going for it; it is one of the safest countries in the world, it is one of the most idyllic for retirement, the cost of living is relatively low while the standard of living is certainly high, a lot of English is spoken, there is a long-term active and holiday market rental and Malta is now easily and cheaply accessible from the UK and Ireland, as well as from Italy and Germany. Malta is on the Mediterranean, it has an amazing climate, crime is very low, and health and education standards are high. Malta’s economy is strong enough that Malta is getting close to adopting the euro in 2008, and politically, the island is stable.
For a real estate investor, all these advantages mean that Malta is now an attractive place to consider for investment and global property specialists Knight Frank have forecast a rise of around 12.5% in property prices in Malta and the neighbor Gozo only next year. Therefore, there is no doubt about the potential of Malta and 2007 will be a good year for property price growth and promotion of the nation to a wider travel and tourism audience.
