View almost any Instagram account or other influencer content about cities such as Barcelona, Venice or Palma de Mallorca and you will doubtless come across references to overtourism. It is not a new phenomenon, but the issue of overcrowding in popular holiday destinations has been gaining traction in recent years and the sight of local people holding banners reading ‘Tourists go home’ is becoming increasingly commonplace.
While the island of Malta – the EU’s smallest member state – is not quite at that stage yet, its lack of size and limited resources coupled with its year-round warm climate and accompanying popularity mean overtourism is a significant risk.
How the local hospitality industry should respond to that challenge and what opportunities it presents were just two of the topics covered by Glion graduate and Director of Hospitality and Care at Malta-based AX Group Claire Xuereb when she spoke to The Insider.
Quality over quantity
“In the 80s, Malta worked hard to expand its tourism industry,” she says. “It was always a popular destination, but we concentrated on selling the island as a place to visit in the colder winter months as well as in summer, meaning we now enjoy high occupancy all year round. But we’ve reached saturation point and we’re beginning to experience overcrowding despite the huge amount of development that’s still happening here on the island.”
As a former Glion student schooled in the ways of luxury hospitality, Claire is quite clear on what she believes is the solution.
“We need to change and focus on quality and value rather than continuing to pursue additional volume, because the island cannot accommodate unlimited growth,” she says.
“AX Group opened the first five-star hotel in Valletta, the Rosselli AX Privilege boutique hotel, which has a Michelin-starred restaurant. There was a clear gap in the market and we filled it.
"That’s what I want to see more of in our hospitality industry. The priority should be to reassess Malta's existing tourism offering, identifying gaps in the market and focusing on developing underserved segments rather than simply increasing visitor numbers.
"Expanding without addressing these gaps risks duplicating existing offerings, exacerbating overtourism and placing further pressure on resources and recruitment, without necessarily adding value to the tourism industry."
The same considered approach applies also to recruitment. “The local labor market is highly competitive, so we use a balanced recruitment approach that considers suitable candidates in Malta as well as international talent where needed. Our priority is always to find people with the right skills and attitude while ensuring recruitment is responsible, fair and aligned with Malta’s evolving workforce needs,” says Claire.
Long-term investment
Again, as with the rest of the hospitality industry worldwide, hiring is just the first part of the human resources challenge.
“Malta is a very attractive destination. Its climate, lifestyle and location all work in its favor,” says Claire. “However, bringing people to the island to work is becoming increasingly difficult because of the processes involved. As a country, we need to simplify and streamline these so that Malta is as attractive from an administrative perspective as it is as a place to live and work. Otherwise, we risk losing good people to other destinations.”
As with the overcrowding issue, Claire believes the solution lies in thinking more strategically and taking a longer-term view that focuses on quality and aligning our product offering.
“Incentives such as long-service awards no longer cut it,” she says. “We just have to get used to the idea that there will be a certain level of staff turnover. What seems to work with the younger generation is setting goals, rewarding achievement and demonstrating there is a pathway to a successful career if that’s what they want.
"I’m more than happy to invest in the next generation, provide training and devise career plans. And to show them how many things they can do in hospitality, because it’s a varied industry and we touch many different disciplines.”
The road to wellbeing
Variety seems to be key to the ongoing success of AX Group. As well as running hotels, Claire looks after a range of other businesses in a portfolio that includes restaurants, residences and care homes.
First Michelin Plaque presentation with Culinary Director Chef Victor Borg.
“We have a retirement village for expats and locals who want active ageing and a home attached to it,” says Claire. “And I gave a hospitality kick to it, which works brilliantly and helps us stand out from other care facilities on the island. I see that side of the business as very similar to hospitality because ultimately it boils down to looking after people. Adding the hospitality element to our care facilities has also made them feel more professional too.”
Claire is keen to develop the care offering further, again as a result of spotting a clear area of increasing demand in the market.
“We’re at the beginning of a huge revolution in wellness,” she says. “Changing consumer habits, including a growing preference for moderation and healthier lifestyles, are influencing alcoholic beverage consumption internationally. As hoteliers, we need to respond by continuing to offer beverages but ensuring the choice also appeals to a more health-conscious demographic.
"In our industry, it’s a case of looking at how we can become even more experiential and sell ‘transformational’ travel. My goal with this side of the business is to be recognized as an institution for wellness in Europe, via the Verdala Wellness Hotel where people who have lived at a fast pace and have maybe lost themselves along the way can come and start their journey towards striking the right balance between demanding lifestyles and wellbeing."
Broadening horizons
If her track record since graduating from Glion is anything to go by, it would be foolish to bet against Claire realizing her ambitions for the group. While continuing to build the hospitality and care businesses in Malta, Claire increasingly believes the time is right for expansion overseas.
“I'm looking at new horizons,” she says. “As I mentioned earlier, Malta is pretty much saturated, so I would like to start venturing abroad. It's a different direction as we’ve never operated overseas before, so it’s a big leap and also a bit of a cultural change for the group.”
As with each other area under Claire’s management, expansion abroad will follow her business philosophy of valuing authenticity and individuality rather than imposing a standardised approach.
“When I look at opening a business, I examine the market and see what gaps I can fill and I create something to fill them. That means identifying the aesthetic, the space and the people I want to put in as a team to deliver it.
“Then I develop the concept and present it to our directors and potential clients. If you look at each of AX Group’s businesses separately, they share very few characteristics. That was quite controversial around 15 or 20 years ago and people often asked me how I could create a chain of hotels with nothing in common. And the reason why? I love authenticity, character and individuality. My aim is to bring out the best of whatever the business is and the location it’s in so guests have a different experience each time. But the service promise, the people and the attention to detail? That’s what unites them.”
The next generation
Claire’s forward-looking philosophy is not confined to her business interests either. As Chairperson of the AX Foundation, she supports its work with children and young people with invisible disabilities while also promoting greater awareness and inclusion among adults, employers and the wider community.
“I’m passionate about education and have been collecting a contribution from our restaurants and hotels to fund the AX Foundation, which works to educate children with invisible disabilities and raise awareness among adults,” she says. “I’m also encouraging other hotels and other businesses in Malta to do the same.
“Part of the Foundation’s mission is working with hotels and others in our industry so they can get better at identifying people with invisible disabilities and deliver an environment in which they can thrive. It’s about raising awareness and showing businesses that neurodiverse people can not only thrive in employment but, in many cases, perform exceptionally.”
Under her guidance, the Foundation has also helped the Maltese government to develop national policy and enlisted expert assistance from overseas bodies such as the UK’s National Autistic Society.
“It’s close to my heart because I genuinely believe that people have different strengths,” she says. “Some are academically gifted, while others excel when their abilities are recognised and nurtured in a different way. Traditional schooling did not particularly engage me, but when I reached Glion and could focus on practical learning in an area I loved, it made a huge difference. That experience showed me what people can achieve when they are given the right environment and opportunities. Hospitality is an industry in which people with different strengths, including neurodiverse people, can genuinely thrive, so I want to do what I can to help make it more inclusive.”
• To discover more about AX Hotels, visit the dedicated website
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