According to the report authored by Sue Bryant, Malta has managed, in recent years, to promote with success its diving, its lively festivals and its history. Now, it is focusing on the luxury market.

"It is one of the areas in which we have had to do the most work," admits Chris Fenech, director, UK & Ireland, Malta Tourism Authority (MTA). "We can't compete with places such as Monte Carlo, but we are attracting, for example, Italians who don't want to pay for Sardinia's Costa Smeralda and are choosing Malta over places such as Sicily. We call it affordable luxury."

The problem, according to the report, is that while Italians and Germans perceive Malta for what it is - a place with great food and wine, superb accommodation and a rich history - many British still see it as a bucket-and-spade destination. "We don't want to be seen as an over-60s place," says Fenech. "So to attract luxury visitors, we are focusing on several areas: spa and wellness; cruising - because people who come for a day are likely to come back; yachting and casinos; and promoting our five-star hotels."

This approach is beginning to pay off. High-end tour operators are starting to notice the island. Cox & Kings has just included Malta for the first time, while Classic Collection added the destination to its winter 2007 brochure. "We have identified it as a destination that has a selection of luxury properties," says Gary Boyer, head of commercial & purchasing at Classic Collection. "Malta is absolutely steeped in history. There's now a very wide choice of luxury properties in Malta and neighbouring Gozo. Classic Collection featuring it for the first time is a clear sign that Malta has lots to offer in the luxury market."

Access, once dominated by British Airways and Air Malta, is also improving, writes Sue Bryant. An abundance of low-cost flights is bringing younger visitors and Ryanair, EasyJet (using the former GB Airways route), Globespan from Glasgow and Flyforbeans - which is planning to start a new service from Cardiff in 2008 - are now opening up the island to the weekend break market.

Meanwhile, according to the report in Luxury Travel magazine, Malta's spa product continues to grow. This industry, by nature attracts luxury visitors, and the MTA has just launched its Malta Healthcare initiative, which aims to attract 50,000 'medical' tourists from the UK annually, for anything from botox and facial peels to full cosmetic and orthopaedic surgery.

The cultural side of life on the island has always been lively but is now attracting more attention, the report says. The annual Arts Festival from late July to mid August brings touring orchestras, opera, art exhibitions and recitals, while outdoor opera is held on a floating stage at the glamorous Portomaso development in St Julians. Malta has a serious opera-loving community, expanding daily thanks to the growing fame of Maltese tenor Joseph Calleja, tipped to be the next Pavarotti. There are also visiting ballet companies including the Bolshoi and the Kirov, plus the oldest baroque theatre in Europe, the Manoel Theatre.  

Malta already has a club scene, at the neon-lit Paceville area, but is developing a more upmarket appeal with venues such as Club 22 at the top of the Portomaso tower, an exclusive, over-25s lounge, and Mocha at the Radisson SAS Golden Sands.

The article also states that the island has its fair share of celebrity fans - Enrique Iglesias, Maroon 5 and Bob Geldof have stayed at the Radisson SAS Golden Sands, while Bryan Adams and Jose Carerras have apent time at Le Meridien at St Julians. Sean Connery and Jacques Chirac, meanwhile, opted for the quieter surroundings of Ta' Cenc hotel in Gozo.