Operators are reporting sustained diesel price inflation, with Italian retail prices exceeding €2 per litre. This has triggered significant cost escalation across the trailer and freight industry, with estimates suggesting additional weekly sector costs in the region of €80 million. Diesel, which typically accounts for 30% to 40% of operating costs, is now placing extreme pressure on carrier margins.

ATTO Chairman Joseph Bugeja said early signs of disruption are becoming more evident.

“Alongside sustained cost pressures, we are seeing isolated instances of fuel supply constraints in parts of Italy. While not yet systemic, these warrant close monitoring,” he said.

Member operators report increasing operational strain.

“To date we have not experienced systemic uplift failures, though drivers have occasionally encountered stations with limited availability,” said Antoine Vella of Express Trailers. “Rising diesel costs are now requiring continuous monitoring and rapid operational adjustments.”

He added that the volatility is increasingly affecting planning and network reliability.

“With vehicles operating across Europe, refuelling has become more critical and is adding complexity to daily operations. The uncertainty in the current environment could have significant implications for Malta’s logistics chain,” he said.

GMC Transport reported fuel cost increases of 20% to 30% over recent months, with margin compression of up to 40%. Director Mark Buttigieg said pricing pressure is now forcing urgent rate reassessments across client contracts.

Concorde’s Jonathan Vella said operators are responding with tactical mitigation measures.

“We are refuelling earlier, relying on larger motorway stations, and avoiding low fuel thresholds before entering Italy or France,” he said. “Even minor delays can now cascade into missed ferry schedules and trailer rotation disruption.”

He noted that cost inflation across EU corridors remains severe, with diesel up approximately 35% over three months and 37% over six months.

Meantime, the Italian government has introduced excise duty reductions and tax credits for transport operators to ease pressure on the haulage sector. However, industry feedback suggests these measures are being outpaced by the scale of cost increases.

At the same time, associations are raising concerns that part of the recent diesel price escalation may be driven by speculative pricing dynamics, amplifying volatility beyond underlying market fundamentals and intensifying financial strain across operators.

More broadly, the Italian haulage sector is facing liquidity pressure due to rising costs and 60–90 day payment cycles, increasing the risk of rate renegotiations, service reductions, and potential operational disruption.

ATTO also noted that pricing transmission across Europe remains uneven due to differing taxation systems and policy interventions, contributing to corridor volatility.

Bugeja emphasised Malta’s structural exposure as a fully import-dependent island economy.

“With no overland alternatives, Malta is entirely dependent on the reliability of European transport corridors. Around 55,000 trailer movements annually underpin national trade flows, and any sustained disruption, whether it’s cost-driven or physical, can rapidly impact economic stability,” he said.

ATTO concluded that while domestic fuel pricing measures offer partial insulation, Malta remains exposed to external corridor volatility, as most absolute fuel uplift occurs outside the country. The association will continue to monitor developments closely and engage stakeholders where necessary to safeguard supply chain continuity.

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The majority of visitors, 224,757, travelled for holiday purposes, while 14,600 arrived for business. Travellers aged 25 to 44 accounted for the largest share at 35.7 per cent, closely followed by those aged 45 to 64 at 35.0 per cent. Nearly half of all arrivals (49.6 per cent) came from the United Kingdom, Poland and Italy.

Total nights spent by tourists rose by 10.3 per cent year-on-year, reaching 1.4 million. Most guest nights (90.5 per cent) were spent in rented accommodation, while the average length of stay stood at 5.5 nights.

Tourist expenditure for the month reached €171.7 million, marking a 16.9 per cent increase over February 2025. Average spending per night was estimated at €125.8.

Meanwhile, 103,579 tourists visited Gozo and Comino — either as day-trippers or overnight guests — representing 41.6 per cent of total arrivals.

January–February Overview

In the first two months of 2026, inbound tourists totalled 484,911, up by 19.9 per cent compared to the same period last year. Total nights spent rose by 16.1 per cent to 2.7 million.

Tourist expenditure reached €350.6 million, an increase of 21.1 per cent year-on-year, while per capita spending edged up to €723 from €716 in 2025.

Visits to Gozo and Comino during this period totalled 197,080, accounting for 40.6 per cent of all tourists.

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Deputy Prime Minister and Minister for Foreign Affairs and Tourism, Ian Borg, held a bilateral meeting with the Minister for Europe and Foreign Affairs of the French Republic, Jean-Noël Barrot, in Paris.

The two sides reaffirmed the strong and longstanding relationship between Malta and France, underlining the mutual respect that characterises ties between the two countries and their shared commitment to strengthening bilateral cooperation within the European Union and across multilateral fora.

Discussions also focused on key regional and global developments, including Russia’s war of aggression in Ukraine, the Middle East and the situation in Libya. Malta reiterated its consistent call for de-escalation and just and lasting peace while emphasising its own constitutional neutrality.

“Malta and France enjoy a relationship built on trust, mutual respect, and a shared commitment to multilateralism. In today’s complex geopolitical environment, continued dialogue is essential to advancing peace, stability, and prosperity,” Dr Borg said.

The two ministers also exchanged views on recent developments across Europe, including in the election result in Hungary, underlining the importance of democratic stability and continued engagement within the European framework.

European priorities including on energy and European sovereignty, also featured prominently, with both sides stressing the importance of unity and effective cooperation within the EU.

Both sides also discussed cooperation at the multilateral level, including within the United Nations.

Dr Borg also highlighted Malta’s role as one of the world’s largest maritime registries, with discussions addressing maritime security, sanctions implementation, and the need to balance enforcement with international obligations relating to safety at sea and environmental protection.

“I outlined Malta’s position on maritime matters, which are of strategic importance to our country. As one of the world’s largest maritime registries, it is essential that international frameworks remain effective while ensuring legal certainty and allowing operators to fulfil their obligations,” Dr Borg added.

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Addressing social partners at a specially-convened MCESD meeting, Abela said that both oil and gas supply lines remain secure and confirmed that energy subsidies will continue. He described the government’s approach as one that prioritises ongoing support for households and enterprises, even in the face of rising global uncertainty.

Referring to recent data published by Eurostat, the prime minister noted that inflation across the euro area rose from 1.9% to 2.6% between February and March. He contrasted this with Malta’s performance, stating that inflation locally declined during the same period and is expected to continue easing in the months ahead.

“While no one expected this situation to happen, we were prepared,” Abela said, pointing to the government’s handling of previous crises, including the COVID-19 pandemic and the war in Ukraine. He acknowledged that current global economic pressures may be more intense than those experienced in 2020 or 2022 but maintained that the government has consistently charted a clear path forward.

Looking ahead, Abela said Malta’s energy infrastructure will be strengthened with the completion of a second electricity interconnector later this year. He added that discussions are already underway on the possibility of a third interconnector to further secure supply.

Energy Minister Miriam Dalli also moved to reassure the public, emphasising that the government’s energy policy rests on two main pillars: price stability and security of supply. She dismissed warnings by the opposition regarding Malta’s liquefied natural gas supply as “irresponsible” and “partisan.”

Dalli confirmed that current arrangements guarantee energy supply until August, when the existing contract with Electrogas is due to expire. She added that preparations for the period beyond that deadline are already underway, with several potential suppliers expressing interest in continuing to provide energy to Malta.

“We realise people are concerned when they hear about global developments, but there is no reason for alarm,” Dalli said, reiterating that both price stability and supply will continue to be safeguarded.

Parliamentary Secretary for Social Dialogue Andy Ellul highlighted the importance of ongoing consultation between stakeholders, describing social dialogue as a key strength in Malta’s decision-making process. He said the council provides a platform where all parties can come together to discuss issues of national importance in a constructive manner.

The government’s message throughout the meeting remained consistent: despite international instability, Malta’s energy sector is secure, with plans in place to ensure both immediate stability and long-term resilience.

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Energy Minister Miriam Dalli, together with the Regulator for Energy and Water Services (REWS), launched the 2026 renewable energy initiatives to continue accelerating Malta’s transition towards a cleaner and more sustainable energy, a government statement said.

“This package reflects government’s continued commitment to move forward in Malta’s energy transition. We are investing in both large-scale infrastructure and households, ensuring families and businesses benefit from cleaner, more affordable energy while strengthening national energy security and resilience,” Dalli said.

REWS CEO Ing. Maria Aquilina said that these initiatives are designed to make renewable energy more accessible at every level.

“From major projects to household systems, REWS remains committed to supporting applicants through clear guidance and effective implementation,” Aquilina said.

The package includes renewable energy initiatives for households and industries in three separate categories.

These include household grant schemes coupled with a Feed-in Tariff supporting investment in photovoltaic systems and battery storage; Feed-in Tariff for installations below 40kWp (applicable to both residential and non-residential); and 2026 Invitations to Bid (ITBs) for large-scale renewable energy projects.

Through the ITBs, government will offer 20-year contracts for a premium per kilowatt-hour (kWh) generated, the statement said.

Projects will be selected through a competitive pay-as-bid process based on cost efficiency and available capacity.

In 2026, two calls consisting of one ITB for each of the categories 40kW up to less than 200kW and 200kW up to less than 1MW, will run concurrently, it said.

The statement said that the capacity available for allocation in each call will be 2.5MW (40kW up to less than 200kW) and 5000kW (200kW up to less than 1MW).

This means that a total of 15MW will be available for allocation. The bid price will be capped at €0.14 /kWh, it said.

A separate call for renewable energy installations of 1MW or more will have a capacity allocation of 38MW.

The maximum allowed bid price will be between €0.094/kWh and €0.177/kWh, depending on the type and category of installation.

The statement said that households and non-households that install a small-scale photovoltaic system below 40kWp, and do not benefit from a grant, will continue to receive a Feed-in Tariff of €0.15/kWh, guaranteed for 20 years with a total allocation of 8MWp in 2026.

Over the past three years, 9.2MWp were offered a Feed-in Tariff of €0.15/kWh without a grant. In parallel, REWS will be administering renewable energy schemes for households with a total budget of €15.3 million, including €4.1 million for photovoltaic systems and €11.2 million for battery storage.

Applications open on 20 April, and will remain available until November 2026, or until funds are exhausted, the statement said.

The RES grant scheme offers three options: a PV system with a hybrid inverter; a Hybrid/Battery inverter and battery storage; or battery storage only.

Owners of PV installations on residential premises (even those that do not benefit from any aid on the PV system i.e. no feed-in tariff or grant) and connected to the grid for at least six years may apply for a Hybrid/Battery inverter and battery storage.

An additional 5% financial incentive for the grant scheme will be available for equipment compliant with the EU’s Net-Zero Industry Act (NZIA), which promotes the production and adoption of clean energy technologies across Europe, the statement said.

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Approaching this summer season is a set of new rules that will be re-shaping several aspects of the hospitality sector across Malta and Gozo, affecting all types of tourism accommodations, including hotels, boutique hotels, and short-term rental properties.ADVERTISEMENTPlayFullscreen0:01-0:28Mute

These new regulations were published on Wednesday via a legal notice, under the Malta Travel and Tourism Services Act.

On Wednesday, Deputy Prime Minister and Minister for Tourism and Foreign Affairs, Ian Borg, announced several new rules that will be affecting the industry as a whole and the short-let scene in particular. Minister Borg said that these regulations look to keep raising the standard of tourist accommodations across the Maltese islands.

“The new regulations will close enforcement gaps and align existing regulations with the Maltese Islands’ strategic shift towards a higher-value tourism offering, while safeguarding the wellbeing of local communities,” Minister Borg said.

In a bid to promote Malta as a higher quality destination, these laws will stop tourism authorities from licensing new all-inclusive and tourist villages. These new rules will also stop applications for one-star and two-star accommodations from being filed altogether.

Minister Borg remarked that through these regulations, “which will raise standards across all accommodation categories,” Maltese authorities are ensuring that visitors’ expectations continue to be met and exceeded.

As part of this reform, only hotel applications with not more than 200 rooms will be considered once these changes are officially in force; this will also act as an expansion cap for hotel extensions and redevelopments. In addition, guesthouses will be limited to having not more than 20 rooms; they must also be located in Urban Conservation Areas (UCAs) and in either a Scheduled building or one with distinctive architectural characteristics, and only if the development will preserve the property’s architectural heritage.

The only applications for new hostels that will be considered for approval are ones of an educational nature, inside residential zones, with a maximum of 40 beds.

These new regulations will also introduce new conditions over the entire sector, with specific focus towards the short-let industry.

These changes are also removing the exemption that has allowed hotels to construct an additional two storeys over local plan limits. This means that new applications will no longer be allowed to rise two floors higher than stipulated, extending also for existing hotels looking to expand upwards.

They will also impose for all apartments being rented out to tourists to include air conditioning.

These new laws, for the first time, are introducing the labels of boutique hotels and luxury boutique hotels into Maltese legislation, thus encouraging further investments in these upscale accommodations.

Two new accommodation labels are also being introduced: “Heritage” and “Diffuso” types. Diffuso accommodations are hotels or guesthouses operating across multiple converted buildings located within the same UCA, all in the proximity of a central building housing the main, central facility. “Heritage Hotels” will refer to three-star, four-star, and five-star hotels and guesthouses in buildings of historical importance, according to the relevant authorities, that have had their distinctive heritage features adequately preserved.

Significant changes to short-let rentals

Minister Borg shared that for all short-lets, as part of these changes coming into force this June, their owners or operators will be obliged to display their licence numbers on a sign outside the property, along with its owner’s name and phone number. This sign will need to remain on display at all hours so that they may receive complaints or be notified about certain issues at all times.

For properties forming part of a condominium, owners, once they are issued with a valid MTA short-let licence, will be obliged to provide this information to the residential block administrators as well.

A 10-person cap will be imposed onto all short-lets. These types of accommodations will also need to submit and provide a waste collection management plan, among other related requirements.

The Minister stated that all short-let operators caught without an authorised licence will be liable to a three-year disqualification, plus extra applicable penalties.

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That is the good news.

The better news is that this is not mere rhetoric. Malta has, over time, built genuine strengths in niche industries such as semiconductors, pharmaceuticals, aviation and maritime services. These are precisely the types of sectors a small island state should target: industries driven by innovation, skills and intellectual property rather than by land use or volume. In that sense, the shift Gregory describes is not only desirable – it is necessary.

Malta’s stability also remains one of its most valuable selling points. At a time when global investors are unnerved by war, supply chain disruption and energy insecurity, the promise of political continuity, economic support measures and relative agility carries real weight. For foreign investors, certainty often matters as much as opportunity.

Yet Malta must be careful not to become complacent.

Stability, while important, cannot become a substitute for deeper structural reform. Subsidies and crisis management can help maintain competitiveness in the short term, but they are not a long-term economic strategy. The real test is whether Malta can translate its current resilience into a more productive, higher-skilled and more innovative economy.

And this is where the challenges become harder.

Gregory himself acknowledges the issue: skills shortages remain acute. Businesses across sectors continue to struggle to find the talent they need, and while re-skilling, up-skilling and the embrace of artificial intelligence are the right priorities, these solutions take time. Malta cannot simply declare itself an innovation hub; it must build the workforce, institutions and research pipelines that make such a label credible.

There is also the question of speed. Research and development may be growing, but if innovation cannot reach the market quickly enough, Malta risks losing out to faster-moving competitors. The country has promising academic work and emerging start-up initiatives, particularly in semiconductors, but commercialisation remains a weak link.

Then there is the issue that no official can ignore: reputation and quality of life. High-value investors may be attracted by incentives and strategic location, but they also look at infrastructure, governance, congestion, planning, and the broader business environment. Malta’s pitch cannot rest solely on tax efficiency, subsidies or agility. It must be backed by a country that functions well.

Gregory’s call for Malta Enterprise itself to become more customer-centric is therefore significant. If Malta wants better investment, it must also offer a better experience.

The direction is correct. A more selective, innovation-led economy is the right ambition for Malta. But the country should not confuse potential with achievement. The foundations may be there, yet turning that promise into durable success will require discipline, reform and a willingness to confront the weaknesses that still hold Malta back.

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Bugibba’s business community is facing the prospect of yet another difficult summer, as prolonged works on the locality’s main square continue to disrupt commercial activity and deter visitors. What was initially presented as a regeneration project has, for many entrepreneurs, become a source of financial strain, uncertainty, and mounting frustration, entrepreneurs told this media house.

Construction began in April last year, with expectations that the project would be completed by May 2026. With that deadline now fast approaching and little indication that works are nearing completion, business owners say they are being forced to endure a second consecutive peak season under severely compromised conditions.

From the outset, communication appears to have been inadequate. Several business operators reported that they were given only a few days’ notice before works commenced, leaving them with no realistic opportunity to plan ahead or mitigate the expected disruption. For businesses that rely heavily on seasonal trade, particularly during the summer months, this lack of preparation has had lasting consequences.

The impact on turnover has been significant. Shop owners describe a steady decline in footfall over the past year, with some struggling to justify remaining open. Reduced customer numbers have translated into lower revenues, forcing businesses to cut costs wherever possible. Employees have not been spared, with reduced working hours becoming increasingly common. In one case, a worker reported her schedule being cut from full-time to just 15 hours per week due to the downturn in activity.

The ongoing works have also undermined Bugibba’s attractiveness as a tourist destination. Visitors, who are a critical source of income for many businesses in the area, are reportedly discouraged by the state of the surroundings. Construction debris, uneven surfaces, and restricted access routes have made the area less inviting, limiting the time tourists spend there and, consequently, their likelihood to patronise local establishments.

Accessibility remains a central issue. In some instances, businesses have found their entrances obstructed or made difficult to reach due to construction materials and barriers. One operator recounted having to file a complaint after large concrete blocks were placed directly in front of their shop, effectively preventing customers from entering. Such situations not only reduce revenue but also risk long-term reputational damage, as customers may choose alternative locations.

Operational challenges have been compounded by interruptions to essential services. Reports of repeated water and electricity outages in recent weeks have added further strain, disrupting normal business operations and increasing costs. In an already fragile trading environment, these additional complications have intensified concerns about sustainability.

A particularly severe blow came in March, when access to certain pavements was completely restricted for three weeks. During this period, some businesses were forced to close altogether, resulting in direct financial losses and leaving employees without income. For small enterprises with limited financial buffers, such interruptions can have lasting repercussions.

Beyond the immediate economic impact, there is a growing sense of uncertainty about the future. Business owners are not opposing the project itself; most acknowledge the potential long-term benefits of a rehabilitated square. However, they are increasingly critical of how the works are being managed. Complaints about a lack of visible progress, limited on-site workforce, and early daily stoppages have raised questions about efficiency and oversight.

The absence of clear, consistent communication from the authorities has further exacerbated the situation. Businesses say they have received little information about revised timelines or the overall progress of the project, making it difficult to plan ahead. Attempts to seek clarification have reportedly gone unanswered, leaving operators to navigate the situation with minimal guidance.

For many in Bugibba, the concern is no longer limited to short-term disruption. There is a growing fear that prolonged mismanagement could cause lasting damage to the locality’s commercial viability. As another summer approaches, businesses are once again preparing to operate under challenging conditions, with no clear end in sight.

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The reforms are built on principles of greater dignity, less bureaucracy, and lower expenses, while strengthening the administrative system, the Ministry said. A clearer structure will be introduced within the Public Registry, separating the Sections of Insinuations and Research from Civil Status Acts, each led by a dedicated Director to ensure uniformity and stronger strategic direction.

New legal mechanisms will allow biological parents to directly register a child in cases where the mother is still legally married to another man, reducing bureaucratic hurdles and costs for affected families. Moreover, the government will remove the five-year time limit for married couples (pre-2021) to change their surname, allowing more flexibility without time restrictions.

Amendments will ensure that, in sensitive cases, the cause of death will not be publicly visible on death certificates, while still being officially recorded. The reforms address inconsistencies in adoption records to ensure proper recognition of biological parents in cases where they were incorrectly listed as adoptive parents.

Digitalisation measures include the introduction of an electronic system for notaries to submit insinuations and expanded access to electronic research services, with further rollout planned in the coming months.

Property-related registration processes will be simplified, including the removal of double fees so that the public pays a single tariff. Moreover, new legal provisions will standardise the use of Latin and Maltese characters in official acts, with transliterations required for other character sets.

Minister for Internal Affairs Byron Camilleri said that public policy must always aim to improve people’s lives and dignity, even in cases that affect only a small number of individuals but make a significant difference to them.

He emphasised that “sometimes things that may seem small make a big difference”.

Identity Malta CEO Edric Zahra said the amendments clearly show the agency’s direction towards modern, flexible public services that reflect today’s realities. He stated that the changes will lead to simpler processes, lower costs, and more accessible services, with the aim of making people’s lives easier.

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The Malta Financial Services Authority (MFSA) has issued a Dear CEO Letter presenting the results of its first year of the Outcomes‑based Supervision (OBS) thematic review on corporate Tied Insurance Intermediaries (TIIs). The review forms part of the authority’s 2025 Supervisory Priorities and aims to ensure that TIIs maintain high standards of conduct, transparency, and consumer protection.

The MFSA assessed 31 corporate TIIs authorised to distribute long‑term (life) insurance products, examining their sales processes, disclosures, governance, remuneration structures, client interactions, and oversight arrangements. The review also evaluated the responsibilities of insurance undertakings appointing TIIs.

Key findings from the MFSA’s review

• Sales processes: Most TIIs adhered to requirements such as conducting demands and needs assessments and providing relevant disclosures. However, some gaps were identified, including limited awareness of certain disclosure obligations, and insufficient record‑keeping of client meeting notes.
• Remuneration: While most TIIs are remunerated solely through commissions, a minority charged additional client fees without always having the documented procedures required to justify and classify these fees. The MFSA emphasised the need for transparency and monitoring of remuneration structures to avoid conflicts of interest or mis‑selling practices.
• Client contact and cross‑selling: 26% of TIIs conducted cold calls, and 23% carried out home visits. The MFSA reiterated that TIIs shall not exert undue pressure or influence on clients, and must ensure compliance with Conduct of Business Rulebook requirements. The review also highlighted concerns around pension product switching encouraged through cold calling.
• Advisory vs non‑advisory sales: While TIIs authorised to provide investment advice were able to evidence suitability testing requirements, some non‑advisory TIIs lacked adequate evidence of appropriateness testing or displayed uncertainty about what constitutes regulated advice.
• Sustainability preferences: Most TIIs regulated to sell on advice demonstrated a sound understanding of assessing sustainability preferences, while ensuring that instances where clients decided to amend their sustainability preferences were clearly documented.
• Complaints handling: 71% of TIIs clearly explained the required procedures, though several were not sufficiently familiar with the role of the arbiter for Financial Services.

Next steps

The MFSA expects all TIIs reviewed to address identified gaps during 2026, with a follow‑up assessment planned for 2027. Insurance principals are reminded of their responsibility to ensure strong oversight, regular monitoring of intermediaries, and appropriate training for staff and TIIs. The Dear CEO Letter serves as guidance for the entire market, including TIIs not directly assessed in 2025.

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