Malta must offer tourists greater value while respecting what residents are willing to tolerate and preserve, The Malta Chamber of Commerce, Enterprise and Industry has argued, saying that the country’s future lies in shifting from high-volume tourism to a higher-yield, better-managed model.

Speaking to this media house, Malta Chamber Board of Management and Council member Alan Arrigo said the organisation’s recently published tourism strategy, Rediscover to Align, is built around the principle of “Managing a Sustainable, Authentic & Resilient Future.” Its core message is that Malta should stop judging tourism success primarily by record arrival numbers and instead focus on how much value each visitor brings to the country.

While Malta has enjoyed record-breaking tourism in recent years, including more than four million tourist arrivals in 2025 for the first time, the chamber believes that raw numbers alone present an incomplete and potentially misleading picture. Arrigo argued that the more meaningful benchmark is average expenditure per tourist, adjusted for inflation. He said that authorities and operators naturally work to improve whichever metric is prioritised, and if the focus remains solely on arrivals, Malta risks pursuing “growth for growth’s sake.”

The chamber’s figures suggest that this is already becoming a concern. Although expenditure per tourist has risen in nominal terms, inflation-adjusted data tells a different story. The Rediscover to Align report shows that average real spending per tourist fell from €919.09 in 2015 to €771.01 in 2025, a drop of 16% over a decade. At the same time, the average length of stay declined by 20%, from 7.9 nights in 2015 to 6.3 nights in 2025. Total tourist expenditure still reached €3.9 billion last year, but the chamber warns that Malta is at risk of becoming a permanently high-volume, lower-yield destination if it does not change course.

For Arrigo, the answer is not simply to charge tourists more, but to offer them more. If Malta wants visitors to spend more, it must give them a stronger sense of value through a better overall experience. That means cleaner public spaces, improved maintenance, stronger infrastructure, and more curated, authentic experiences that can justify a premium price point. If tourists feel overcharged for a mediocre product, he warned, Malta risks sliding further into a downward spiral in which value perception deteriorates and higher-yield tourism becomes harder to attract.

The chamber’s strategy, published this month and containing 115 proposals, is intended as a ready-made blueprint for government. It calls for a shift towards what Arrigo described as “not handling more but handling it better.” The aim is to align operators, authorities and residents around a common objective: extracting more value from each tourist visit while improving the experience for everyone involved. If Malta handles tourism better, he said, tourists will stay longer, spend more, return more often and strengthen the sector in a more sustainable way.

A central part of that vision is the principle that tourism cannot be separated from residents’ quality of life. If it’s not working for residents, it’s not working for tourists, Arrigo said, arguing that local wellbeing is not secondary to the tourism product but integral to it. Tourists come to experience local culture and character, not a hollowed-out destination stripped of its authenticity. If residents feel overwhelmed, neglected or alienated, the visitor experience will eventually suffer too.

That is why the chamber is placing significant emphasis on preserving Malta’s distinctiveness. Arrigo said the islands’ culture, environment, landscapes and local feel are among the country’s strongest tourism assets. If these are protected and enhanced, Malta can continue to command value as a unique destination. If they are eroded, Malta risks becoming interchangeable with countless other destinations competing on price rather than quality. No-one in the world is Maltese except Malta, he said, underlining the argument that Malta’s uniqueness should be treated as a premium product.

One of the more notable concepts in the chamber’s approach is the idea of respecting what residents are willing to change. Arrigo acknowledged that overtourism can be difficult to measure precisely, but said negative public perceptions, such as those seen in cities like Barcelona, can be reduced if policymakers pay attention to residents’ tolerance levels. Using the concept of a “limit of acceptable change,” authorities can identify the point at which locals begin to see tourism’s social and environmental costs as outweighing its economic benefits.

This philosophy feeds into several practical proposals. Among them is a national aesthetic and landscape policy to safeguard streetscapes and scenery, alongside a renewed Strategic Plan for the Environment and Development (SPED), which has lapsed. Arrigo said a revised SPED should clearly distinguish commercial from residential areas, helping to preserve neighbourhood character and avoid uncontrolled encroachment. The chamber also believes local councils should play a far bigger role in shaping their localities, from the design of public squares and visual standards such as colours and umbrellas, to upkeep and maintenance. In this way, councils would represent residents more directly while contributing to the overall quality of the tourism product.

The strategy also calls for a central coordinating entity to work with residents and local councils on such matters, reflecting the chamber’s belief that tourism is a vast value chain in which the weakest link can damage the entire experience. Arrigo stressed that lower-end details, from cleanliness to visual coherence, matter just as much as high-profile attractions if Malta wants to raise standards across the board.

Another key theme is the chamber’s warning against government working in silos. Arrigo said the biggest threat to Malta’s tourism product is a fragmented approach in which ministries and agencies operate independently without understanding how their decisions affect the visitor and resident experience. Tourism, he argued, is not just the responsibility of the tourism ministry or the Malta Tourism Authority. Planning, transport, heritage, education, policing, the environment, cleanliness and enforcement all have a direct impact on the sector. If these sectors are not coordinated, “things will break,” damaging both quality of life and the tourism offer.

The report therefore urges a whole-of-government approach, involving every relevant ministry in implementation. It also promotes the use of data and smart systems to better manage tourism pressures. Examples include dynamic pricing in crowded hotspots such as Valletta to influence visitor flows, and smart bins that alert authorities when collection is needed. These measures, the chamber says, are intended to improve efficiency, manage congestion and maintain standards in real time.

Ultimately, Arrigo said Malta is at a crossroads. If it continues to chase tourism growth through volume alone, it risks undermining the very qualities that make the islands attractive in the first place. But if government embraces a coordinated, quality-first strategy focused on infrastructure, aesthetics, resident wellbeing and authentic experiences, Malta can build a more resilient and profitable tourism model. In the chamber’s view, Rediscover to Align is a strategy that is ready to be adopted immediately – a blueprint for doing tourism better, not simply doing more of it.

This is an abridged version of an interview carried in The Malta Independent on Sunday on 29 March

The post Malta must pursue better tourism, not just more tourism, The Malta Chamber says first appeared on The Malta Business Weekly.

On Monday, Deputy Prime Minister and Minister for Foreign Affairs and Tourism, Ian Borg, addressed the Annual General Meeting of the Malta Chamber of Commerce, Enterprise and Industry, in Valletta, discussing the implications of global instability on Malta’s trade and economic development.

The war in Ukraine, the conflicts in the Middle East and the Gulf, and increasing competition over critical technologies and supply chains, are reshaping global commerce, disrupting trade routes, and placing new pressures on all nations. Faced with this reality, Malta must prioritise resilience, diversification and diplomacy, objectives that are also central to Malta’s long-term vision, towards an economy capable of withstanding shocks and seizing opportunities.

To ensure resilience, Malta must continue investing in “preparedness, efficient logistics and secure connectivity to global markets,” Dr Borg explained, as he emphasised the need to diversify outward while consolidating existing strengths. “Diversification is essential to expand markets and build resilience. Malta must strengthen its European base while deepening engagement in the Mediterranean, the Gulf, Africa, and emerging economies, ensuring reduced dependence on any single geopolitical sphere,” said Dr Borg.

The Deputy Prime Minister encouraged all stakeholders to keep protecting what already works, including financial services, digital industries, maritime, aviation, tourism and advanced manufacturing. “These sectors employ thousands and contribute significantly to national wealth, and we must ensure they retain their competitiveness and sound regulation. Stability and predictability remain key to investor confidence, and we are committed to providing both,” he affirmed.

Economic diplomacy and multilateral engagement are critical as well. As he outlined the efforts of Malta’s diplomatic network in supporting businesses abroad, Dr Borg noted that “for small states like Malta, multilateral fora are our first line of defence. Through engagement in international and regional organisations, Malta works to uphold fairness, openness, and predictability in global trade.”

He also highlighted the importance of strategic foresight. “Change is rapid and demands anticipation rather than reaction. This requires strong collaboration between the government, business, and our diplomatic network, alongside sustained investment in skills, innovation, and digital transformation,” he added.

In this regard, Dr Borg commended Trade Malta, established through a collaboration between the Government and the Malta Chamber, for its efforts to support export promotion, training, market intelligence, and trade missions. “Together with our embassies, we will strengthen our support to ensure Maltese businesses can succeed internationally,” he said.

The Deputy Prime Minister also praised the Malta Chamber, which continues to be an invaluable partner in promoting competitiveness, good governance, and responsible leadership. “Malta’s future depends on remaining outward-looking, innovative, and resilient. Our entrepreneurs have already proven their ability to compete globally. As a Government, we will continue providing the conditions for success through stable policy, strong partnerships, and a diplomatic network aligned with the private sector,” concluded Dr Borg.

The post Resilience, diversification and diplomacy are central to Malta’s economic security – Ian Borg addresses the Malta Chamber first appeared on The Malta Business Weekly.

In an interview with this media house, he characterised this argument as misleading, asserting that an economic model is a dynamic framework designed to incentivise growth and build national resilience rather than a static set of activities. According to the Minister, the strategy has evolved through distinct phases dictated by the immediate needs of the country, moving from a focus on basic employment to a sophisticated emphasis on high-value industries.

Reflecting on the state of the nation in 2013, Schembri noted that the Labour government inherited a stagnant economy marked by high unemployment and an excessive deficit procedure. At that time, the priority was the restoration of economic fundamentals. He argued that when families are struggling with unemployment, the immediate requirement is job creation rather than a discussion on the quality of those jobs.

The first five years of the Labour administration were therefore dedicated to jumpstarting activity and stabilising national finances. He suggested that while previous administrations may have had aspirations for the country, they lacked the capacity to actually generate the wealth necessary to fund those ambitions.

The transition to a more refined model was interrupted by the global pandemic, which shifted the government’s focus toward preservation. Schembri explained that the primary goal during those two years was to protect existing businesses and employment so that the country would be in a position to restart once the crisis subsided. He contrasted Malta’s performance with that of larger, resource-rich nations that struggled significantly more during the same period. By 2023, the government felt the foundations were strong enough to initiate the next phase of the strategy, which prioritises value-added activity over simple job volume.

This shift is evidenced by recent investments in specialized sectors such as aviation, semiconductors, medical technology, pharmaceuticals, and the digital economy, including blockchain and video game development. Schembri pointed out that the spike in GDP growth from 2023 onwards is a direct result of this focus on higher value.

He addressed political criticism by stating that new economic niches do not mature overnight, often requiring three to five years to show results. He cited the gaming industry as an example of a sector that took years to reach maturity under both parties, suggesting that the current government is now seeing the fruits of frameworks established in 2018 and 2019.

Regarding the challenges of rapid expansion, the Minister admitted that the pace of growth triggered a housing rush that lacked sufficient coordination. He acknowledged the resulting issues with uglification and urban standards, conceding that the government could have managed planning more effectively. He noted that long-term coordination and improved standards are now central pillars of the Vision 2050 document, which aims to provide a more structured roadmap for the country’s future development. He also teased an upcoming announcement regarding what he described as the largest new foreign direct investment in Malta’s history, surpassing previous significant expansions in the manufacturing sector.

The interview also touched upon the impact of international instability, specifically the ongoing conflicts in the Middle East. Schembri observed that as a small and open economy that imports 70 per cent of its consumed products, Malta is highly sensitive to shifts in global logistics and supply chains. While acknowledging the volatility of the geopolitical situation, he sought to reassure the public that the government is monitoring developments closely. He noted that the experience gained during the pandemic and the Russia-Ukraine war has provided the administration with the expertise needed to manage such crises. Currently, he does not anticipate significant disruptions to the supply chain from the situation in Iran, noting that the Freeport has already adjusted its routes.

On the topic of inflation and the cost of living, the minister emphasized a scientific approach to government intervention. He defended the energy and fuel subsidies and the Stabbilta mechanism, which aimed to stabilise the prices of essential goods. He argued against implementing broad, reactionary measures based on media pressure, suggesting that interventions must be tailored to specific types of inflation, whether imported, induced, or supply-side. He credited the country’s strong “war chest” and healthy finances for providing the cushion necessary to intervene where needed, while also noting that fuel hedging provides a level of price stability for the coming months.

Ultimately, Schembri framed the government’s approach as one of calculated progression. By moving from a survivalist focus on job creation to a sophisticated pursuit of high-tech niches, he believes the administration has created an economic engine capable of sustaining the country’s standard of living while beginning to address the secondary effects of that growth, such as urban planning and infrastructure coordination. He challenged political opponents to move beyond populist criticism and provide concrete alternatives, particularly regarding their views on population and specific economic sectors.

This is an abridged version of an interview which was carried in The Malta Independent on Sunday on 15 March

The post Value added, not cheap labour, is the future of Malta’s economy, says Schembri first appeared on The Malta Business Weekly.

This campaign follows the completion of a detailed survey, which was undertaken to further refine the submarine cable route between Malta and Sicily, the company said. During this survey, several magnetic targets were identified buried under the seabed that require further investigation to confirm their nature and ensure the route is safe for the installation of the submarine electricity cable.

A total of 707 magnetic targets were initially detected during the survey. Following desktop post-survey analysis, this number was reduced to 393 targets requiring further investigation. As a precautionary measure, the Identification and Clearance campaign will investigate these targets via specialized equipment and remove or relocate any obstacles that may pose a risk to the safe installation of the interconnector cable.

These features, located beneath the seabed, became visible only during the detailed survey stage, when investigations were limited to a precise 8-metre-wide sub-seabed corridor. Earlier preliminary route studies do not provide this level of resolution, as they are conducted across a much wider corridor and are not intended to identify such anomalies. While the discovery of these anomalies presented an additional technical challenge for the project, the issue was promptly addressed through the launch of the Identification and Clearance campaign to ensure that the route can be verified and prepared for safe cable installation.

The campaign will involve specialised offshore vessels and remotely operated equipment to inspect each identified target along the route. Where objects are confirmed not to pose a risk, they will either be recovered or safely managed on site. In the event that an object is identified as unexploded ordnance, the response will be coordinated with the relevant authorities, including the Armed Forces of Malta and the Italian authorities, to determine the appropriate course of action in accordance with established safety procedures.

The works will involve a multidisciplinary team of offshore survey specialists, divers, and Explosive Ordnance Disposal experts, supported by specialised vessels and equipment. Activities will vary by location and water depth, from deep‑water investigations at around 170 metres using remotely operated vehicles, to diver‑assisted inspections in shallower areas. These operations form part of the IC2 project and are essential to confirming that the submarine cable route is safe, and compliant with international standards before cable laying begins.

Inġ. Christian Spiteri, Manager at Interconnect Malta, stated that “the transition to the ID&C phase represents a significant step in the project’s timeline.” He noted that “The Identification and Clearance campaign represents an important technical step in preparing the seabed route for the Second Interconnector. Ensuring that the route is free from potential hazards is essential for the safe installation of the submarine cable and for the protection of personnel involved in the works. This process reflects the rigorous engineering and safety standards that guide the project as we continue progressing towards its next phase.”

“The Second Malta-Sicily Interconnector is a central element of Malta’s long‑term energy strategy and features prominently within the ‘Energy, Climate & Environmental Transformation’ priority of Malta’s Vision 2050. Once operational, it will double the country’s interconnection capacity, strengthen security of supply, and help drive Malta’s shift toward a more sustainable and resilient energy system.” Remarked the Hon. Dr Miriam Dalli Minister for the Environment, Energy and Public Cleanliness on this technical milestone. 

The project is co-financed by the European Union through the European Regional Development Fund (ERDF), reflecting the shared commitment of Malta and the European Union to investing in strategic infrastructure that supports energy security and the green transition.

The post Second interconnector: Identification, clearance phase starts after completion of marine survey first appeared on The Malta Business Weekly.

The report, titled Rediscover to Align, argues that the country’s tourism success should now be guided by better alignment between visitor growth, infrastructure, environmental sustainability, residents’ quality of life and broader national priorities.

Presenting the document, Malta Chamber President William Spiteri Bailey said tourism remains one of Malta’s most important economic sectors, but its significance extends well beyond its financial contribution.

“Tourism is the primary way Malta presents itself to the world, through our people, culture and landscapes,” he said.

He noted that after the strong post-pandemic rebound, the central issue is no longer recovery but stewardship. The sector has regained momentum, with visitor numbers and air connectivity restored, but that very success is now creating fresh pressures.

Spiteri Bailey said the Chamber had first started this discussion during the Covid-19 crisis, when it asked what Malta’s tourism model should look like in the future rather than simply waiting for conditions to improve. That process led to the original Rediscover document in 2021, while Rediscover to Align is intended as the next stage of that long-term vision.

EY Malta Senior Manager Glenn Fenech said Malta’s tourism performance has continued to reach new highs, with tourist arrivals climbing to around four million last year, more than double the 1.8 million recorded in 2015.

Tourism expenditure also rose sharply, reaching €3.9 billion. However, Fenech pointed out that the average expenditure per tourist has fallen, dropping from €919 to €771. This decline is partly attributed to shorter stays, with the average tourist now spending 6.3 nights in Malta in 2025.

He also highlighted changing accommodation trends. Around 61% of tourists are now staying in collective accommodation, including short-let properties, while 31% stay in traditional non-collective accommodation and 8% in non-rented accommodation.

At the same time, seasonality is becoming less pronounced. October has now emerged as one of the busiest months for tourism, alongside August, replacing July as the second peak month. Malta has also become less dependent on its traditional core markets – the United Kingdom, Germany, Italy and France – as it broadens its tourism base.

Fenech said the strategy is the result of broad consultation involving more than 30 public and private sector stakeholders, backed by data analysis and sector research. Its central message, he said, is that tourism growth must be matched by the country’s ability to sustain it.

“We need to manage success through alignment so that growth remains sustainable and resilient,” he said.

Malta Chamber Board member Alan Arrigo outlined the strategy’s three main pillars.

The first focuses on improving the visitor journey and reshaping the tourism offer. Among the proposals are calls for the Malta Tourism Authority to place greater emphasis on value rather than sheer visitor volume, with stronger promotion of Malta’s heritage, gastronomy and cultural identity. The strategy also recommends expanding niche, experience-driven tourism and creating a smarter tourism ecosystem that uses data to manage visitor flows more effectively.

Arrigo said the report also pushes for a shift from “more beds to better beds”, including a review of hotel planning incentives and closer alignment between tourism development and infrastructure capacity.

The second pillar centres on authenticity and environmental protection. It calls for stronger safeguards for Malta’s landscapes, historic streetscapes and village identities, as well as firmer protection of ODZ areas from damaging development. Proposed measures include a national aesthetics and landscape policy, tighter limits on projects that harm natural surroundings, and stronger links between tourism and culture.

The strategy also encourages the expansion of year-round tourism niches such as conferences, educational travel, diving, maritime tourism and cultural events, in a bid to reduce pressure from seasonal peaks.

The third pillar addresses governance and coordination. It proposes stronger collaboration across ministries and agencies, alongside the creation of a Tourism Resilience and Reinvestment Reserve. Other recommendations include industry-led skills frameworks, greater investment in innovation and digitalisation, and improved working conditions across the sector.

Tourism Operators Business Section Chairperson Joe Galea said the sector’s strong recovery after the pandemic has created new obligations for both industry and policymakers.

“If there is an industry that was successful after the pandemic, it is tourism, but that success brings responsibilities,” he said.

He stressed that Malta must now focus on exceeding visitor expectations while ensuring that tourism does not erode residents’ quality of life. Galea said locals must remain central to the tourism experience, noting that visitors are drawn to authentic destinations where residents themselves remain proud of where they live.

The Chamber said the document is intended as a living strategy that will evolve over time. But its message is clear: Malta’s tourism future should no longer be measured by numbers alone, but by whether success can be sustained without undermining the islands’ communities, identity and environment.

The post Malta Chamber of Commerce urges shift from tourism growth to tourism stewardship first appeared on The Malta Business Weekly.

A post by the European Parliament, on its Facebook page, reads: “Lower income and smaller pensions – women deserve better. Women in the EU earn on average 12% less than men and the gap follows them into retirement, the average pension gap is 24.5%. They are more likely to take parental or maternity leave, work part-time and hold lower-paid jobs in undervalued sectors, which limits their earnings and contributes to the gender pay and pension gaps.”

“Parliament calls for an EU action plan to improve working conditions and fair pay in women-dominated sectors and strengthen women’s work-life balance.”

In the table it published, the pension gap is 40.3%, the highest in the EU. The Netherlands was the country with the second highest gap, with 36.3%.

The country with the lowest gap is Estonia, where the gap stood at 5.6 %, followed by Slovakia, with a gap of 8.4%.

The post Malta has highest gender pension gap in European Union first appeared on The Malta Business Weekly.

The announcement was made during a press conference held at the offices of the Building and Construction Authority (BCA) by Minister for Justice and Reform of the Construction Sector Jonathan Attard, alongside BCA Chief Executive Officer Roderick Bonnici.

Under the scheme, individuals purchasing properties that meet sustainability standards will be eligible for grants ranging from €4,500 to €9,000, distributed over a three-year period. The initiative forms part of a broader set of government measures aimed at increasing home ownership while advancing environmental goals outlined in Malta’s Vision 2050 strategy.

Attard explained that the scheme aligns with national sustainability targets by incentivising investment in buildings that consume less energy. “Through this scheme, we are creating a direct incentive for citizens to invest in properties that adopt higher sustainability standards,” he said, noting that beneficiaries would enjoy lower energy bills and reduced environmental impact.

The scheme applies to properties purchased from 1 October 2025 and will remain open for applications until 30 September 2026. Buyers of “Net Zero” properties – homes that generate more energy than they consume – will receive €3,000 annually for three years, totalling €9,000. Meanwhile, buyers of properties that exceed European energy efficiency standards by at least 20% will receive €1,500 annually, amounting to €4,500 over the same period.

During the first year of the scheme, around 200 applications were submitted, with approximately €200,000 already disbursed as initial payments.

Attard also referenced other initiatives launched by the authority, including the “Irrinova Darek” scheme, which supports home renovations and was reintroduced earlier this year.

Bonnici outlined the application requirements, stating that applicants must submit the final property purchase contract along with the building’s Energy Performance Certificate based on its completed state, not design projections. He added that only one application per property and per individual will be accepted.

Bonnici highlighted the authority’s ongoing efforts to promote sustainable construction practices, noting that a dedicated unit has been established in recent years to ensure buildings meet European standards.

Also present at the press conference were BCA Chairman Simon Saliba and Permanent Secretary Johan Galea.

Further information about the scheme can be obtained through the authority’s helpline at 138.

The post Government re-launches sustainable property scheme with grants up to €9,000 first appeared on The Malta Business Weekly.

In January, the European Commission’s Economic Sentiment Indicator increased from a month earlier and reached the highest level recorded. Meanwhile, the Employment Expectations Indicator rose and stood above its long-term average. Its Economic Uncertainty Indicator (EUI) reached a historic low, indicating low uncertainty surrounding financial and business decisions.

In December, industrial production contracted, though at a smaller rate, while annual growth in retail trade accelerated. In November, services production declined and reversed a brief recovery observed in the preceding month.

The unemployment rate in December rose marginally compared with November, but at 3.2% remained low from a historical perspective.

In December, permits for residential buildings rose from their year-ago level. In January, both the number of residential promise-of-sale agreements and the number of final deeds of sale increased on a year earlier.

The annual rate of change of Maltese residents’ deposits and credit in December increased compared with November.

The annual inflation rate based on the Harmonised Index of Consumer Prices (HICP) stood at 2.3% in January, down from 2.5% in December. HICP inflation excluding food and energy stood at 2.2%. While overall HICP inflation was above that in the euro area, HICP inflation excluding food and energy in Malta was in line with the euro area. According to the Retail Price Index (RPI), inflation stood at 2.5% in January, down from 2.7% in December.

The post CBM issues February Economic Update: Economic sentiment at the highest level recorded first appeared on The Malta Business Weekly.

Xuereb, who also serves as chief Operations officer of Global Ports Holding, said the move forms part of a broader strategy to expand home porting operations and strengthen Malta’s position as a Mediterranean cruise hub.

The port recorded a landmark year in 2025, with 962,966 passengers passing through its facilities across 385 cruise calls. While this represents strong performance, Xuereb noted that most calls are transit visits, meaning passengers spend only the day in Malta. Cruise ships typically berth at 8am and depart around 6pm, limiting visitor engagement to roughly 10 hours.

The port’s strategic focus is now shifting toward home porting and fly-cruise operations, where voyages begin or end in Malta. Unlike transit calls, home port operations generate additional economic activity through air travel, hotel stays and extended tourism. Xuereb argued that cruise-and-stay packages are particularly valuable, as they encourage passengers to arrive earlier or remain after disembarkation, converting cruise visitors into stay-over tourists. This increases per capita expenditure, lengthens stays and deepens engagement with the destination.

Home port operations generally run between 4am and 10pm, sometimes extending overnight to accommodate boarding. However, the current terminal infrastructure is limited. The existing facility is small, and the company believes a purpose-built home port terminal is necessary to support its expansion plans.

Such a terminal is not included in the government’s Grand Harbour Revival Plan. Xuereb said the port is seeking further clarity on planned infrastructure changes before submitting a formal proposal. Ideally, the new facility would be located at the Deep Water Quay, which he described as the only logical adjacent expansion point. Splitting operations across multiple locations on a small island would be inefficient, he argued, and expansion toward the Deep Water Quay aligns with the broader government vision.

Xuereb welcomed the public consultation process surrounding the Grand Harbour plan, describing it as a long-term and transformative vision that balances heritage preservation, public access and mixed-use development. He said regeneration efforts complement cruise operations and enhance the wider destination experience. The cruise port and the Valletta Waterfront, he added, have already played a catalytic role in revitalising the area. The port is participating in consultations both independently and through the Malta Maritime Forum.

Space remains the port’s primary operational constraint. Situated at the foot of the capital beneath historic bastions, the narrow strip between quay and fortifications limits flexibility. Xuereb acknowledged these challenges but said operational efficiency has improved as a result. He also credited support from national authorities, particularly the Transport and Tourism ministries, and highlighted the importance of Transport Malta officials in managing traffic during busy operational days.

Looking ahead, 2026 is expected to build on the momentum of 2025, which surpassed pre-pandemic highs recorded in 2019. Cruise calls are projected to increase by around 20% to 420, although passenger numbers will remain broadly stable. This reflects a shift toward smaller, luxury vessels with lower capacity.

The rise in luxury cruising is influencing both port operations and onshore offerings. According to Xuereb, higher-end guests increasingly request exclusive experiences such as private concerts, lunches in private residences or curated wine-tastings. Luxury cruise lines sometimes even request scheduling gaps to avoid sharing port space with large ships. In response to growing demand for high-service travel, some major operators have adopted a “ship-within-a-ship” model, creating premium enclaves within larger vessels that combine exclusivity with the amenities of mass-market cruising. This hybrid approach allows operators to serve more discerning clientele without sacrificing scale.

Xuereb emphasised the sector’s strategic value as a gateway market: 80% of cruise passengers last year were first-time visitors to Malta. Of the remaining 20% who had previously visited, two-thirds had first discovered the island via cruise travel. Additionally, 87% expressed interest in returning for a longer stay, and nearly 90% rated Malta eight out of 10 or higher when asked if they would recommend it. In Xuereb’s view, cruises function as a powerful marketing channel, generating repeat visitation and sustained tourism growth.

He suggested that Malta could leverage cruise arrivals more effectively within its broader tourism strategy. Delivering a high-quality experience during a brief port call is essential if visitors are to return. Infrastructure improvements, reduced waiting times at cultural sites and smoother traffic management would enhance overall satisfaction. While the port manages the on-quay experience, the wider visitor journey depends on coordination across multiple stakeholders.

Demographic shifts are also reshaping the sector. When Xuereb entered the industry more than two decades ago, the average cruise passenger was over 65. Today, the global average age has fallen to around 45, reflecting broader market diversification. The cruise season has likewise expanded. What was once concentrated between May and September now stretches from March through November, with winter cruising increasingly common. According to industry data, nearly one-third of global cruise passengers in the past two years were first-time cruisers.

Malta’s central Mediterranean location supports its inclusion in Western, Eastern and Adriatic itineraries, reinforcing its strategic appeal. Cruise visitors are also venturing beyond Valletta during stopovers. Excursions frequently include trips to Mosta, Mdina and Rabat, as well as combined cultural tours linking the Upper Barrakka Gardens and St John’s Co-Cathedral with the Tarxien Temples and Mdina’s ramparts. Experiential activities such as Maltese cooking classes, wine and olive oil tastings, and visits to prehistoric temple complexes are increasingly popular. Smaller-group or private excursions – including visits to the Blue Grotto and Marsaxlokk – are also in growing demand.

In parallel with operational expansion, several infrastructure projects are underway. The government, through Transport Malta and Infrastructure Malta, is widening the Pinto 4 and 5 quays. The cruise port is developing a four-storey car park within the Valletta Waterfront precinct. Additionally, the historic old power station complex in Floriana, located at the foot of Crucifix Hill, is set to be converted into a boutique hotel under an agreement with a local hospitality company.

Environmental measures are also advancing. Valletta became the first Mediterranean port to provide onshore power supply to cruise ships through its shore-to-ship project. In 2025, approximately 107 vessels connected to the system, significantly reducing emissions in the harbour area. Xuereb noted that each vessel requires technical adaptation and testing before connecting, but described the initiative as a major success that contributes meaningfully to carbon reduction.

The post Valletta Cruise Port pushes for new terminal as part of Grand Harbour vision first appeared on The Malta Business Weekly.

The supplies tender for the Design, Supply, and Installation of a 245kV 1x250MVA Auto-Transformer, alongside 1x120MVAr and 1x240MVAr Variable Shunt Reactors, has now commenced at the BEST manufacturing plant in Turkey. This transition ensures that the essential assets required for the successful operation of the second interconnector remain on track for delivery. 

The €20.2 million contract is being delivered by the local contractor AG Installations, working in close collaboration with their supplier, BEST.  

“We’re pushing forward with the implementation of our energy strategy, delivering projects that matter. We’re making significant investments in our distribution infrastructure, accelerating renewable energy growth, leading the way on battery storage, and progressing on the development of the second interconnector. Together, these initiatives will strengthen our energy security and transform our energy mix by unlocking more renewable energy opportunities.” Minister Dr. Miriam Dalli said.

Inġ. Ismail D’Amato, Chief Executive Officer of Interconnect Malta, emphasized the significance of this phase: “The commencement of manufacturing of the reactors and transformer marks an important milestone in the implementation of IC2. These components are not merely infrastructure; they are the pillars that ensure grid stability and voltage control, without which energy cannot be transmitted through the interconnector. Through its supervision, Interconnect Malta is supporting the delivery of a strategic asset designed to achieve high levels of reliability for the national network. ” 

These specific components, namely, the auto transformer and variable shunt reactors, are required for voltage regulation and reactive power control. Their integration is essential for maintaining the overall stability of the national grid and ensuring the safe, efficient transfer of electricity between Malta and Sicily. 

The Second Interconnector serves as a cornerstone of the Government’s energy strategy, designed to double Malta’s interconnection capacity and significantly enhance security of supply.  

By reducing reliance on local fossil-fuel generation and facilitating the integration of large-scale renewable energy, IC2 is pivotal to the nation’s green transition. This strategic investment is co-financed by the European Union under the European Regional Development Fund (ERDF), reflecting a shared commitment to strengthening Malta’s energy resilience and sustainability within the European market. 

The post Manufacturing commences on critical infrastructure for second Malta–Sicily Interconnector first appeared on The Malta Business Weekly.