Evaluating Tourist Expenditure Year 2016 Malta Tourism Authority Research Unit Strategic Development Malta Tourism Authority Research Unit Strategic Development

Introduction The MTA carries out a survey on tourists’ expenditure patterns on a continuous basis. This study was first launched in 1996. In 2015, the expenditure survey was redesigned in order to adopt a novel approach towards measuring the distribution of tourists’ expenditure across the different sectors of the economy. Malta Tourism Authority Research Unit Strategic Development

Objectives of the Traveller Expenditure Survey Provide a detailed breakdown of tourists’ expenditure complementing the data produced by the National Statistics Office (NSO). Classify tourists’ expenditure into the different categories required for the development of a Malta Tourism Satellite Account (TSA) - the framework to measure tourism’s economic contribution on an annual basis. Provide policymakers and stakeholders with a wider and richer set of tools at both macro and micro levels to assist them in making their decisions. Outline opportunities for investments which yield more. Generate insight on new marketing opportunities and growth prospects

Methodology The survey targets 81% of tourists visiting Malta. Questionnaires are distributed to tourists from the following countries of origin: UK Ireland Italy Germany Spain France Netherlands Belgium Austria Switzerland Scandinavia Sample sizes allow for detailed analysis to be carried out for the UK, Italy, Germany and France. A total of 1,594 questionnaires were collected in 2016. Malta Tourism Authority Research Unit Strategic Development

Methodology Prior to Departure During Stay Respondents are asked to state expenditure both prior to departure and during stay Prior to Departure Package Expenditure (Flight, Accommodation, transfers, site/attraction visits, event tickets, vehicle hire and Other expenditure) Non-Package Expenditure (Flight and Accommodation, Transport, Recreation and Other Expenditure) During Stay flight accommodation food and drink transport recreation shopping other Each expenditure category is sub-divided into different categories

Expenditure Patterns of Tourists Main Origin Markets Sample Sizes UK N=636 Germany N=335 France N=184 Italy N=143

Type of Booking Arrangement According to MTA Expenditure Survey Results, the majority of trips (57.4%) were booked with a tour operator or travel agent. Nearly 43.0% of trips were booked independently . The German market featured the highest share of package-type of trips whilst the Italian market represented the largest share of non-package type of bookings.

Expenditure Prior to Departure Average Expenditure per person (in Euro) UK Germany Italy France Total Total Package 774.9 708.1 699.0 762.9 746.1 Total Non-Package 336.4 299.3 293.9 392.5 329.6 Total Expenditure Prior to departure 651.6 633.7 396.6 621.2 609.1 Survey results indicate that average expenditure prior to departure was €609 with the British traveller spending the highest total average expenditure prior to departure. During 2016 , average package price amounted to €746 . Non-package price was estimated at €330. The UK and the French traveller spend the highest per capita expenditure on both package and non-package type of trips. Compared with the other markets, the Italian traveller spend the lowest average expenditure on package and non- package trips . Expenditure Prior to Departure is all money spent before leaving the country of residence

Booking Arrangement - Non-Package trips Tourists opting for non-package type of trips mainly booked the flight and accommodation prior to departure. Flight (45.2%) Accommodation (32.6%) Transfers (13.4%) Vehicle Hire (7.8%) Public transport (6.7%) Guided tours/excursions (1.5%) Site/attraction visits (1.3%)

Booking Arrangement - Package trips The package price mainly includes the flight, accommodation and transfers. Flight (56.2%) Accommodation (56.3%) Transfers (46.0%) Site/attraction visits (7.8%) Event Tickets (2.0%) Vehicle Hire (1.6%) Other (half board, all-inclusive, breakfast) (11.8%)

Expenditure During Stay Weighted Average Expenditure per person (in Euro) UK Germany Italy France Total Per Capita Expenditure 353.4 307.2 299.2 324.8 339.4 Accommodation * 55.0 27.1 44.7 47.0 47.7 Food and Drink 173.7 139.6 138.2 140.7 161.5 Transport 25.4 26.4 36.9 32.4 27.8 Recreation 48.9 56.7 36.8 54.1 51.8 Shopping 37.5 44.1 29.9 37.4 38.9 Other Expenditure 11.0 10.7 9.2 10.9 9.8 * Accommodation expenditure not included in expenditure ‘prior to departure’

Share of Expenditure During Stay During stay , average per capita expenditure of tourists visiting Malta in 2016 was €339 with an average length of stay of 8.3 nights. Share of Expenditure During Stay Share of Expenditure During Stay (in %) UK Germany Italy France Total Per Capita Expenditure 100.0% Accommodation 15.6% 8.8% 14.9% 14.5% 14.1% Food and Drink 49.2% 45.4% 46.2% 43.3% 47.6% Transport 7.2% 8.6% 12.3% 10.0% 8.2% Recreation 13.8% 18.5% 16.7% 15.3% Shopping 10.6% 14.4% 11.5% Other Expenditure 3.1% 3.5% 3.4% 2.9% Differences across source markets : Indications show that the British followed by the French generated the highest expenditure per capita. The UK tourist have the highest expenditure per person on ‘food and drink’. Expenditure on ‘recreation’ is the highest for the German and the French. Compared to the other main markets, the Italian spend more on ‘transport ‘and less on ‘shopping’ during stay.

Expenditure During Stay Share of Expenditure During Stay Expenditure During Stay Tourists spend their money mainly on: - Food and Drink (restaurants, groceries , bars/pubs/places of entertainment) - Recreation (organised tours/excursions , attraction/site visits, sports) - Shopping (souvenirs, clothing, basic necessities) Expenditure during stay is mostly allocated on ' food and drink' followed by 'recreation' and 'shopping'. Most of the expenditure paid during stay is spent on food and drink in restaurants, followed by expenditure on accommodation, food and drink from groceries , food and drink in bars/pubs and places of entertainment, souvenirs , food and drink in accommodation establishments , organized tours/excursions , attraction/site visits and clothing.

Expenditure During Stay on Accommodation This category refers to expenditure on accommodation once at the destination – i.e. not included in expenditure prior to departure. This expenditure may include direct payment for accommodation services and any extras requested (e.g. room upgrades). The Italian tourists feature as the highest spenders within this category, with 20.6% of total expenditure during stay is allocated on accommodation.

Share of tourists spending money on Food and Drink UK Germany Italy France Total Food and Drink 90.6% 96.3% 91.8% 91.4% 92.5% Accommodation Establishments 25.8% 48.8% 11.4% 3.7% 26.5% Restaurants 77.0% 76.4% 86.0% 84.1% 80.3% Takeaways 20.3% 52.1% 46.4% 49.5% 34.6% Bars/Pubs/Places of Entertainment 48.3% 31.0% 68.2% 56.4% 47.9% Groceries 59.1% 83.6% 64.7% 60.1% 65.6%

Per Capita Expenditure During Stay on Food and Drink Weighted Average Expenditure per person (in Euro) UK Germany Italy France Total Per Capita Expenditure on Food and Drink 173.7 139.6 138.2 140.7 161.5 Accommodation Establishments 20.8 25.0 3.7 2.0 17.1 Restaurants 100.0 70.0 78.9 95.7 94.3 Takeaways 3.6 10.1 14.3 13.2 8.2 Bars/Pubs/Places of Entertainment 27.1 8.1 16.9 14.1 19.5 Groceries 22.2 26.4 24.4 15.6 22.4

Share of expenditure by type of food & drink within the ‘Food & Drink’ Category UK Germany Italy France Total Food and Drink 100.0% Accommodation Establishments 12.0% 17.9% 2.7% 1.4% 10.6% Restaurants 57.6% 50.2% 57.1% 68.1% 58.4% Takeaways 2.1% 7.2% 10.3% 9.4% 5.1% Bars/Pubs/Places of Entertainment 15.6% 5.8% 12.3% 10.0% Groceries 12.8% 18.9% 17.7% 11.1% 13.8%

Share of expenditure on ‘Food & Drink’ of total expenditure during stay UK Germany Italy France Total Food and Drink 49.2% 45.4% 46.2% 43.3% 47.6% Accommodation Establishments 5.9% 8.1% 1.2% 0.6% 5.0% Restaurants 28.3% 22.8% 26.4% 29.5% 27.8% Takeaways 1.0% 3.3% 4.8% 4.1% 2.4% Bars/Pubs/Places of Entertainment 7.7% 2.6% 5.7% 4.4% Groceries 6.3% 8.6% 8.2% 6.6%

Expenditure During Stay on Food and Drink The largest share of total expenditure during stay is spent on food and drink. ‘Restaurants’ are the main receivers of this expenditure. The British traveller spends the highest per capita expenditure on ‘food and drink’ followed by the French. The highest per capita spenders on ‘restaurants’ are the British and the French. The British and the Italians spend higher than average on ’bars and pubs’ whilst the Germans and the Italians spend slightly more than average on ‘groceries’. A comparison across the surveyed markets shows that out of total expenditure during stay, it is the British followed by the Germans who allocate the highest share to food and drink. 58% Restaurants 14% Groceries 12% Bars/pubs/places of entertainment 11% Accommodation Establishments 5%Takeaway

Share of tourists spending money on Transport UK Germany Italy France Total Transport 83.7% 87.3% 92.7% 89.5% 86.2% Ferry crossings 46.0% 52.4% 54.5% 59.3% 50.0% Vehicle Hire 9.1% 8.5% 15.5% 21.3% 11.9% Taxis 33.3% 23.1% 44.9% 34.6% 32.8% Public transport 61.5% 73.6% 72.9% 63.5% 66.2%

Per Capita Expenditure During Stay on Transport Weighted Average Expenditure per person (in Euro) UK Germany Italy France Total Per Capita Expenditure on Transport 25.4 26.4 36.9 32.4 27.8 Ferry crossings 3.9 4.2 5.1 5.6 4.3 Vehicle Hire 6.8 8.1 12.1 11.5 Taxis 7.2 8.3 6.4 6.6 Public transport 7.5 9.9 11.4 8.9 8.7

Share of expenditure by type of transport within the ‘Transport’ category UK Germany Italy France Total Transport 100.0% Ferry crossings 15.3% 15.7% 13.9% 17.2% 15.6% Vehicle Hire 26.7% 30.8% 32.7% 35.6% 29.2% Taxis 28.5% 16.0% 22.6% 19.7% 23.8% Public transport 29.5% 37.4% 30.9% 27.5% 31.4%

Share of expenditure on ‘Transport’ of total expenditure during stay UK Germany Italy France Total Transport 7.2% 8.6% 12.3% 10.0% 8.2% Ferry crossings 1.1% 1.4% 1.7% 1.3% Vehicle Hire 1.9% 2.6% 4.0% 3.6% 2.4% Taxis 2.0% 2.8% Public transport 2.1% 3.2% 3.8% 2.7%

Expenditure During Stay on Transport 8.2% of total expenditure during stay is spent on transportation. Survey results indicate that two out of three respondents made use of public transport. With a per capita expenditure of nearly €37, the Italian tourist feature as the highest spender within this category. The Italians are the highest per capita spenders on vehicle hire, taxis and public transport. The Italian and the French tourists tend to spend more than average on vehicle hire whilst the Italian and the British spend more on taxis during stay. Taxis Vehicle Hire Ferry Crossings Public Transport 31% 29% 24% 16%

Share of tourists spending money on Recreation UK Germany Italy France Total Recreation Expenditure 80.9% 87.3% 79.9% 88.0% 84.5% Guided tours and excursions 29.6% 31.8% 26.5% 29.9% 30.0% Hop-on-hop off sightseeing tours 24.4% 19.1% 17.5% 15.7% 22.6% Boat trips 32.6% 41.5% 34.6% 36.7% Attraction/site visits 48.1% 57.0% 47.8% 57.6% 50.8% Event tickets 3.0% 4.0% 10.8% 3.2% 4.4% Popular Entertainment 3.4% 4.5% 12.8% 4.7% 4.8% Sports 7.8% 9.7% 5.3% 16.4% 10.3%

Per Capita Expenditure During Stay on Recreation Weighted Average Expenditure per person (in Euro) UK Germany Italy France Total Per Capita Expenditure on Recreation 48.9 56.7 36.8 54.1 51.8 Guided tours and excursions 14.6 21.6 7.2 15.3 15.9 Hop-on-hop off sightseeing tours 5.1 4.3 4.6 3.3 4.9 Boat trips 6.5 6.9 7.0 5.8 Attraction/site visits 10.9 13.0 10.3 17.8 12.2 Event tickets 0.7 1.4 1.8 0.3 0.9 Popular Entertainment 2.2 0.5 3.1 0.8 1.6 Sports 9.0 9.1 2.8 10.8 9.5

Share of expenditure by type of recreation within the ‘Recreation’ category UK Germany Italy France Total Recreation Expenditure 100.0% Guided tours and excursions 29.9% 38.1% 19.4% 28.4% 30.7% Hop-on-hop off sightseeing tours 10.4% 7.5% 12.6% 6.0% 9.4% Boat trips 13.2% 12.1% 19.0% 10.7% 13.3% Attraction/site visits 22.2% 22.9% 28.0% 32.9% 23.5% Event tickets 1.5% 2.4% 4.8% 0.5% 1.7% Popular Entertainment 4.6% 0.9% 8.5% 3.1% Sports 18.3% 16.0% 7.7% 19.9% 18.2%

Share of expenditure on ‘Recreation’ of total expenditure during stay UK Germany Italy France Total Recreation Expenditure 13.8% 18.5% 12.3% 16.7% 15.3% Guided tours and excursions 4.1% 7.0% 2.4% 4.7% Hop-on-hop off sightseeing tours 1.4% 1.6% 1.0% Boat trips 1.8% 2.2% 2.3% 2.0% Attraction/site visits 3.1% 4.2% 3.4% 5.5% 3.6% Event tickets 0.2% 0.4% 0.6% 0.1% 0.3% Popular Entertainment 0.5% Sports 2.5% 3.0% 0.9% 3.3% 2.8%

Expenditure During Stay on Recreation Organised tours/excursions (30.7%) Attraction/site visits (23.5%) Sports (18.2%) Boat Trips (13.3%) Hop-on-hop off sightseeing tours (9.4%) Popular Entertainment (3.1%) Event Tickets (1.7%) 15% of total expenditure during stay is spent on recreation. Organised tours and site visits account for the highest share of this expenditure (54.2%). The British and the French traveller spend the highest per capita expenditure on recreation. The French and the Germans allocate the large majority of this expenditure on ‘guided tours and excursions’ and ‘attraction/site visits’. Compared with the other source markets, the French tourist spend more on ‘sports’ mainly on diving whilst the Italian visitor spends more than average on ‘popular entertainment’.

Share of tourists spending money on Shopping UK Germany Italy France Total Shopping Expenditure 84.6% 93.9% 88.3% 95.8% 88.8% Basic Necessities 35.7% 32.1% 30.0% 29.4% 32.5% Souvenirs 67.6% 73.1% 79.6% 78.2% 71.5% Clothing 34.0% 45.4% 27.4% 35.3% 37.3% Maps, postcards, guidebooks 36.8% 60.5% 33.8% 61.0% 45.2% Other 12.2% 17.9% 0.6% 6.1% 11.6%

Per Capita Expenditure during Stay on Shopping Weighted Average Expenditure per person (in Euro) UK Germany Italy France Total Per Capita Expenditure on shopping 37.5 44.1 29.9 37.4 38.9 Basic Necessities 4.8 3.7 5.9 2.2 4.0 Souvenirs 18.8 16.6 17.8 22.1 18.2 Clothing 9.7 5.2 8.4 11.3 Maps, postcards, guidebooks 1.7 3.0 1.0 2.1 Other 2.6 0.1 3.4 *Other expenditure on shopping mainly includes expenditure on jewellery, stamps, wine, guidebooks/books, newspapers gifts, adapter, medicines and water

Share of expenditure by type of shopping within the ‘Shopping’ Category UK Germany Italy France Total Shopping Expenditure 100.0% Basic Necessities 12.7% 8.4% 19.6% 5.7% 10.3% Souvenirs 50.2% 37.7% 59.5% 59.1% 46.6% Clothing 25.8% 40.3% 17.3% 22.4% 29.1% Maps, postcards, guidebooks 4.5% 6.8% 3.5% 8.1% 5.3% Other 6.7% 0.2% 4.6% 8.7%

Share of expenditure on ‘Shopping’ of total expenditure during stay UK Germany Italy France Total Shopping Expenditure 10.6% 14.4% 10.0% 11.5% Basic Necessities 1.3% 1.2% 2.0% 0.7% Souvenirs 5.3% 5.4% 5.9% 6.8% Clothing 2.7% 5.8% 1.7% 2.6% 3.3% Maps, postcards, guidebooks 0.5% 1.0% 0.3% 0.9% 0.6% Other 0.0%

Expenditure During Stay on Shopping 11.5% of total expenditure during stay is spent on shopping. This is mainly spent on souvenirs (5.3%) and clothing (3.3%). The British and the French visitor spend the highest per capita expenditure on shopping. The French tourist registered the highest expenditure on souvenirs. Per capita expenditure on clothing is highest for the Germans . All markets allocate the highest share of this expenditure on souvenirs and clothing. Basic Necessities Clothing Maps, postcards, guidebooks Souvenirs 47% 29% 10% 5%

Share of tourists spending money on ‘Other’ expenditure UK Germany Italy France Total Other Expenditure 35.2% 37.3% 43.2% 48.0% 36.4% Vehicle Fuel 17.6% 14.8% 18.7% 26.2% 16.8% Parking fees 9.6% 7.0% 12.8% 19.9% 10.0% Tobacco Products 10.9% 13.9% 20.4% 15.7% 12.2% Internet Access 7.3% 5.5% 8.5% 4.9% 6.6% 6.3% 11.5% 6.1% 5.9% 6.9%

Per Capita Expenditure on ‘Other’ Weighted Average Expenditure per person (in Euro) UK Germany Italy France Total Per Capita Expenditure on ‘other expenditure’ 11.0 10.7 9.2 10.9 9.8 Vehicle Fuel 2.3 2.4 3.2 3.7 Parking fees 0.4 0.2 0.5 0.9 Tobacco Products 6.5 2.1 2.6 3.1 3.8 Internet Access 0.7 Other Expenditure 1.3 5.5 2.2 3.0 2.7 * Other expenditure mainly includes tips, sun beds/ beach equipment, beauty treatments, safe, Language course , telephone/phone cards

Share of expenditure within the ‘Other’ Category UK Germany Italy France Total Other Expenditure 100.0% Vehicle Fuel 21.2% 22.6% 34.7% 34.3% 24.4% Parking fees 3.9% 1.9% 5.4% 8.0% 4.3% Tobacco Products 58.9% 19.7% 27.8% 28.6% 38.9% Internet Access 3.8% 4.5% 7.7% 1.8% 4.4% 12.1% 51.3% 24.2% 27.3% 28.0%

Share of expenditure on ‘Other’ of total expenditure during stay UK Germany Italy France Total Other Expenditure 3.2% 2.7% 3.5% 2.2% 2.9% Vehicle Fuel 0.7% 0.9% 1.1% 0.8% Parking fees 0.1% 0.2% Tobacco Products 1.5% 0.6% 0.5% Internet Access 0.3% 1.0%

Expenditure During Stay on ‘Other’ Expenditure 38.9% Nearly 3% of total expenditure during stay is spent on ‘other expenditure’. Tobacco products accounts for the largest share of this expenditure (1.1%). Whilst the British travellers spend considerably higher than average on tobacco products, the Italians and the French tend to spend slightly more than average on vehicle fuel. Compared with the other markets, the Italian and the German tourist allocate a highest share of this expenditure on ‘internet access’. The large majority of ‘other expenditure’ was spent mainly on tips, sun beds/ beach equipment, beauty treatments, safe, Language course and telephone/phone cards. 38.9% Tobacco Products 28.0% Other Expenditure 24.4% Vehicle Fuel 4.4% Internet Access 4.3% Parking fees

Total Average Expenditure Prior and During stay   UK Germany Italy France Total Total Average Expenditure prior to departure (in Euro) 651.6 633.7 396.6 621.2 609.1 Total Average Expenditure during stay (in Euro) 353.4 307.2 299.2 324.8 339.4 Total Average Expenditure (in Euro) 1,005.0 940.9 695.8 946.0 948.5 Average Length of Stay (in nights) 9.0 8.4 7.0 7.5 8.3 Average Expenditure per capita per night 111.7 112.0 99.4 126.1 114.3 Results indicate that total average expenditure per capita was €949. This includes expenditure spent on booking arrangements prior visiting Malta and the amount of money spent during stay. The UK traveller was the highest per capita spender with an average of €1,005. However, the French was the highest spender per night with an average expenditure of €126.

Evaluating Tourism Expenditure Total Expenditure by Quarter 2016 Total Main Markets Winter 2016 Spring Summer Autumn Average Exp Prior to Departure per person (in Euro) 529.14 593.9 688.1 494.7 Total Package (in Euro) 607.96 758.0 844.9 614.6 Total Non-Package (in Euro) 257.78 301.3 395.0 263.9 Average Exp During Stay per person 317.01 354.2 364.9 271.8 Average Expenditure per person per day prior to departure (in Euro) 57.58 75.7 81.1 67.4 Length of Stay (nights) 9.2 7.8 8.5 7.4 Average Expenditure per person per day during stay (in Euro) 34.46 45.2 43.0 37.0 Average Expenditure per person per day prior and during stay (in Euro) 92.0 121.6 123.9 103.6

Evaluating Tourism Expenditure Breakdown of Local Expenditure By Quarter 2016 Weighted Average Expenditure per person (in Euro) Winter 2016 Spring Summer Autumn Accommodation 27.7 52.9 57.6 31.9 Food and Drink 153.8 166.6 170.2 138.4 Transport 23.3 28.3 31.4 21.7 Recreation 54.6 50.4 57.1 37.4 Shopping 47.4 42.8 36.5 32.6 Other Expenditure 10.0 11.2 9.4 8.5 During stay , the summer visitor tends to spend more on accommodation, food and drink, transport, recreation and ‘other expenditure’.

Evaluating Tourists’ Expenditure Time Series Total Expenditure per capita (in Euro) Year 2012 Year 2013 Year 2014 Year 2015 Year 2016 Package 663.2 697.9 674.8 772.3 746.1 Non-Package 310.9 387.6 378.2 362.9 329.6 Expenditure Prior to Departure 472.1 561.8 536.5 645.2 609.1 Expenditure During Stay 312.5 320.6 327.2 338.1 339.4 Total Expenditure 784.6 882.4 863.6 983.3 948.5 % Market Share of Expenditure 60.2% 63.6% 62.1% 65.6% 64.2% 39.8% 36.3% 37.9% 34.4% 35.8% 100.0%

Evaluating Tourists’ Expenditure Time Series – During Stay Expenditure Paid During stay per capita (in euros) Year 2012 Year 2013 Year 2014 Year 2015 Year 2016 Accommodation 37.4 33.5 37.1 45.9 47.7 Food and Drink 138.1 155.5 155.2 166.9 161.5 Transport 29.1 26.0 23.0 28.1 27.8 Recreation 42.3 44.8 48.1 51.8 Shopping 48.4 46.6 47.1 39.5 38.9 Other Expenditure 17.3 14.3 18.9 9.7 9.8 Total 312.5 320.6 327.2 338.1 339.4 % share of Expenditure Paid during stay 12.0% 10.4% 11.4% 13.6% 14.1% 44.2% 48.5% 47.4% 49.4% 47.6% 9.3% 8.1% 7.0% 8.3% 8.2% 14.0% 14.2% 15.3% 15.5% 14.5% 14.4% 11.7% 11.5% 5.5% 4.5% 5.8% 2.9% 100.0%

Evaluating Tourism Expenditure Investment Opportunities Facilities/Attractions/products would like Malta and to offer and the opportunity to spend more money on: Good restaurants, more French food Supermarkets More buses/Connection from Valletta/more detailed bus timetable Water parks Local Products More information on certain sites and attractions Entertainment/Theatre Bike rentals Souvenirs

Evaluating Tourist Expenditure Year 2016 Survey results indicate the following : Total average expenditure per capita was estimated at €949 including both expenditure spent on booking arrangements prior visiting Malta and the amount of money spent during stay . Average expenditure per capita per night was estimated at €114 for an average length of stay of 8.3 nights. The French tourist was the highest spender spending on average €126 per person per night. Whilst in Malta, tourists spent their money on food and drink, recreation and shopping. The British followed by the French generated the highest expenditure per capita during stay. Average per person per night is the highest in the summer months. The Summer visitor tends to spend more on accommodation, food and drink, transport , recreation and ‘other expenditure’.