CARRYING CAPACITY ASSESSMENT FOR TOURISM IN THE MALTESE ISLANDS AND DEVELOPMENT POLICIES 2000-2010

Executive Summary

The World Tourism Organisation defines carrying capacity as ‘the maximum number of people that may visit a destination at the same time, without causing destruction of the physical, economic and socio-cultural environment and an unacceptable decrease in the quality of visitor satisfaction’. The Carrying Capacity Assessment does not provide a numerical formula for tourist arrivals. It describes a scenario which establishes a framework with parameters within which to direct future tourism development in Malta for the next ten years.

Malta has very high percentage of built up areas, in fact 23% of Malta, and 11% of Gozo is urbanized. Furthermore 30.5% of Malta’s coast, and 7.5% of Gozo’s, are also built up. Hotels and complexes alone take 0.3% of land resources, this excludes all other form of accommodation.

The process began in 1997 and has involved the collection, analysis and interpretation of data by a multi-disciplinary team. The study was conducted with the help of the United Nations Environment Programme’s Priority Actions Programme Regional Activity Centre (PAP/RAC) based in Split, Croatia. PAP/RAC had developed a methodology tailor-made for tourism in Mediterranean countries. A number of development options were proposed but it was finally decided to focus on one particular scenario – one which adopts a sustainable approach and is more appropriate to Malta’s circumstances. For example the study established that a tourist’s demand on resources, particularly water and energy are 1.5 times higher than that of a resident.

A more in-depth formulation and analysis of this scenario was carried out through a series of internal discussions within the Malta Tourism Authority (MTA). Due consideration was given to the various influential factors affecting the operation of the tourism industry within the wider economic, spatial, environmental and social context. The guiding principle was the harmonization of the overall local tourism context with national interests, whilst respecting the limitations posed by environmental, socio-cultural and economic constraints. The CCA study describes the preferred limited growth scenario which broadly outlines the following direction:-

• Tourism’s contribution to the economy must be maintained by increasing foreign earnings and per capita expenditure.
• Investment must be channeled towards resource-efficient segments. The conflict for limited resources must be addressed by ensuring that resources are allocated to their best use.
• Social and private benefits and costs must be assessed to assist in the direction of resource allocation.
• The volume of hotel-type bed stock should be stabilized and the quality of service, occupancy levels and room rates improved.
• Summer volumes should stabilize below saturation levels and increases in volume generated in the off-peak period.
• Malta’s tourism offer must be enhanced by better presentation and management of all available components of the tourism product. Improvement of the current and existing offer is more of a priority than its expansion.

The CCA study also identified, that current August levels of 160,000 per month which could be equivalent to 1.4 million guest nights, is the maximum socially acceptable level, and consequently this number should not be exceeded.

The implications of not following this direction will be an economy too dependent on a single sector, an inefficient allocation of resources, low occupancy and room rates, resentment and resistance by residents towards development and tourism, pressures caused by higher population densities, the neglect of environmentally sensitive areas, an increase in urbanization levels, and ultimately a reduction of tourist satisfaction levels.

The study underlines that the current August volume level of 160,000 visitors, currently equivalent to 1.4 million guest nights, is the maximum socially acceptable level and advises that volume should be capped at that level.

This framework and the parameters identified form the basis of official government tourist development policies for the next decade. The MTA, which evaluates applications for tourism development, has therefore adopted these policy parameter and applies them when accessing applications. The MTA’s reviewed Strategic Plan 2002-2004 will follow these policies. The main objective is to ensure that the fundamental principles of sustainable development are maintained and implemented.

The Ministry of Tourism has worked closely with other ministries. The document, and more importantly the policy favouring sustainable development, has received Cabinet approval. To ensure the successful implementation of the scenario all stakeholders must demonstrate their total commitment to these policies.

The Ministry of Tourism, together with the Malta Tourism Authority, will establish a CCA monitoring team and will continuously assess the Islands’ development strategy and its impacts.

Copies of the document will be on sale at the Ministry of Tourism and the Malta Tourism Authority.