Low-income earners stay home as holidays climb by 25% over 2017

One in four Maltese workers are unable to afford a holiday in summer, data collected by the European trade unions lobby shows.

The price of package holidays, which are meant to provide the best value breaks, at home or abroad has increased by 12.4% across the EU between January and May, and that follows an 11.5% increase last year, according to Eurostat data.

This makes it the highest increase in the cost of package holidays since records began in 1996 – before last year, the previous highest annual rise was 7.2% in 2015.

The analysis by the European Trade Union Confederation found that in Malta, the average price of a package holiday had climbed by at least €277 since 2017, to just over €1,360. The inflationary rise places Malta in the mid-league of EU states, even though the final price of a holiday for Maltese workers is at the higher end.

But the same data shows that amongst minimum wage earners, 26% will not be able to afford a break from the cost-of-living crisis of 2023 as families face the highest increase in the cost of holidays and staycation activities on record.

The average price of a package holiday of four nights or more was calculated using Eurostat data for 2017 and 2018 and adjusted for inflation according to the individual rate for package holidays.

ETUC’s analysis across the rest of the EU found that the average cost of a package holiday of four nights or more is now €2,967 – up by more than €600 since 2018.

People in Estonia, France, Bulgaria, Sweden, and Czechia were hit by the highest increases in the cost of a package holiday, with rises between 18% and 31% over that of five years ago.

In 14 member states, the average price of a package holiday is worth more than a month’s pay for those earning the minimum wage in 14 member states, Malta included.

And around 19.5% of working people across the EU can’t afford a week away from home – equivalent to 38 million people.

The highest numbers of working people unable to afford a holiday are found in Romania (43%), Greece (37%), Hungary (34%), Italy (31%), Croatia (31%) and Cyprus (3%).

For those forced to stay at home, the cost of recreation and cultural activities, including visits to the cinema or museums, has also increased by a record 6.5% - a third more than nominal wage growth.

ETUC has called for windfall taxes on super-profits for governments to alleviate the cost-of-living crisis, saying hefty profits accounted for two-thirds of inflation. “Wages are not the cause of inflation. Workers are the victims of this crisis, with the value of their wages falling while prices for everyday goods are rising. This is increasing existing inequalities, with low paid workers and vulnerable people hit the hardest.”

ETUC secretary-general Esther Lynch accused business CEOs of causing inflation by using supply shortages as an excuse to ramp up profit margins.

“A holiday is important for the wellbeing of workers but the record increase in prices will mean millions missing out on a break this summer... EU and national leaders need to finally tackle the real cause of this crisis by imposing effective windfall taxes on the excess profits driving inflation and strengthening collective bargaining to provide for pay increases as the best way to restore working people’s purchasing power.”