The strong take-up of new bonds issued by hoteliers during the last year accompanied by a significant demand for shares of companies related to the tourism industry on the Malta Stock Exchange reveal a healthy investor appetite for local tourism-related investments, Steve Ellul, Head at BOV Asset Management Limited said during the announcement of results of the MHRA BOV Deloitte survey for the Q2 2019.
“Investors tend to look for sustainable growth in this industry. This is particularly true for equity investors, while bond investors generally consider interest coverage as one of the main drivers for the investment decisions,” said Mr Ellul, according to a press statement issued by BOV.
Mr Ellul also argued that given its importance to the local economy, the Maltese tourism industry benefits from very supportive government policy. This is being reflected by a recent World Economic Forum report which ranks Malta as first globally for the prioritisation of travel and tourism, the BOV statement says.
Upon accessing the Maltese capital markets, investors can benefit from monetisation on otherwise locked wealth on the balance sheet without any loss of control by the owners on the business, which is coupled by taxation benefits on shares listed on the stock exchange along with the real possibility to pursue growth prospects through a diversified element of financing, the BOV press statement adds.
“The financial industry needs to continue in its endeavours to inform and educate potential issuers about such opportunities. On their part, industry participants would need to allow for a change in corporate culture towards more open and transparent communication with capital markets which would allow potential investors to make a well-informed decision,” Mr Ellul added.