2005 to 2006 was a very bad period for Malta; The Mediterranean island’s economy is heavily dependent on tourism and, in its bid to win 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 slippage of the tourism industry.
The government was also reluctant to expand its aviation policy to allow in cheap flight operators from the UK, Ireland, Italy and Germany and as a result fewer tourists arrived in 2006 and the property market in Malta, which also depends largely from the tourist trade. it was bogged down with an oversupply of real estate shares that had a negative impact on investors considering entering the market.
Fortunately, a series of events have taken place to change the fortunes of Malta and, looking ahead to 2007, everything looks very positive for the property 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 a holiday or retirement home hunter tomorrow will consider Malta because they know they can come and go frequently for little money and with a good selection of flights. available.
As soon as visitors start arriving in large numbers, as they are expected to do in 2007, more people will realize how attractive Malta is, which will in turn increase the demand for rental accommodation and resale properties. , which means that an investor has big profits in Malta from the 2007 awards.
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, English is widely 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 Italy and Germany. Malta is on the Mediterranean, has a stunning climate, crime is very low, and health and education standards are high. Malta’s economy is strong enough that Malta is nearing the adoption of the euro in 2008, and politically the island is stable.
For a property investor, all these advantages mean that Malta is now an attractive place to consider for investment and global property specialists Knight Frank have forecast an increase of around 12.5% in property prices in Malta. and neighboring Gozo only next year. Therefore, there is no doubt about Malta’s potential and 2007 will be a good year for the growth of property prices and the promotion of the nation to a wider travel and tourism audience.