The research, authored by Professor Rose Marie Azzopardi and Professor Alexiei Dingli, brings together extensive local and international analysis, stakeholder engagement, and forward-looking insights, positioning human capital as a central pillar for Malta’s future competitiveness.

Speaking at the launch, the Chair of The Malta Chamber’s Employment Agencies Business Section Mr Justin Anastasi described the report as a turning point in Malta’s economic journey.

“Over the past decade, Malta has experienced strong economic growth driven largely by expansion in numbers. However, the time has now come to shift decisively towards quality,” he said.

“This report clearly shows that we are facing structural challenges, including skills mismatches, skills shortages, and an increasing reliance on foreign labour. At the same time, education outcomes are not fully aligned with labour market needs.”

“If Malta is to remain competitive, we must prioritise productivity, invest in upskilling and reskilling, and strengthen the link between education and industry. Lifelong learning is no longer optional, it is essential.”

Also addressing the launch, Mr Geoffrey Fichte, CEO of HSBC Malta, emphasised the broader national importance of the project.

“Malta’s economy stands out as a real success story in Europe.  This has been achieved thanks to the innovation and hard work of its people, supported by clear government policy and a forward-looking strategy,” he said.

“We supported this research project to better understand what is needed for continued success in the economy of the future including technological change, artificial intelligence and global competition.”

“It provides some clear and actionable recommendations to build a more skilled, adaptable, and future-ready workforce.”

The report highlights a number of critical challenges and priorities for Malta’s development. It finds that while economic growth has been strong, it has been largely driven by workforce expansion rather than productivity gains, making a transition towards a quality-driven economic model essential.

Among its key findings, the report identifies persistent skills mismatches, shortages in key sectors, and a continued brain drain of highly educated individuals. It also points to a growing disconnect between education investment and outcomes, as well as the need to better align education systems with labour market demands.

In response, the report calls for a fundamental shift towards lifelong learning, stronger collaboration between education and industry, and the adoption of more flexible and modern learning approaches, including micro-credentials and competency-based education. It also emphasises the importance of digital skills, adaptability, and continuous upskilling in a rapidly changing global economy.

Both organisations reiterated that addressing these challenges requires coordinated action across government, industry, and education stakeholders, stressing that Malta’s long-term prosperity will depend on its ability to develop, attract, and retain talent.

The Human Capital Research Project represents the culmination of three years of research and dialogue and is intended to serve as a roadmap for future policy and strategic action.

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The project consists of the construction of a 122 km alternating current subsea electricity interconnector, operating at a nominal voltage of 220 kV and a frequency of 50 Hz, with a transmission capacity of 225 MW. The cable will connect the Enemalta terminal station in Magħtab, Malta, to Terna’s substation at Contrada Cimillà in Ragusa, Sicily. The operation also benefits from earlier EIB Advisory support during project preparation, including the assessment of its financial and economic viability, ensuring the project’s maturity, financing eligibility and compliance with relevant EU requirements.

“The second interconnector is an important investment in Malta’s long-term economic stability. By strengthening our energy infrastructure, we reduce vulnerability to external shocks, improve supply security, and support stable energy prices for households and businesses,” Minister for Finance Clyde Caruana stated.

Scheduled to enter into operation in the first quarter of 2027, the interconnector will increase electricity interconnection capacity between Malta and Italy, enabling electricity imports from the EU market, strengthening security of supply and grid stability, and supporting demand growth and the integration of renewable energy in line with Malta’s decarbonisation objectives.

“Electricity interconnectors are essential to a secure, integrated and decarbonised European energy system. By backing Malta’s second interconnector with Italy, the EIB is strengthening energy security, facilitating cross-border electricity exchange and renewable integration, while ensuring that growing demand can be met in a reliable and sustainable manner. This project reflects the EIB’s key role in supporting strategic energy infrastructure across Europe,” EIB Vice-President Marek Mora stated.

The total project cost is estimated at 296.68 million euros, financed by EU funds under the European Regional Development Fund with 165.78 million euros, alongside the EIB loan and the Republic of Malta’s own resources. The EU Bank also provided advisory support through JASPERS, a joint initiative of the EIB and the European Commission, offering guidance on project design, procurement and implementation to ensure a robust technical framework and smooth delivery of this strategic infrastructure.

The Government of Malta will retain ownership of the assets. Interconnect Malta, a 100% government-owned company, is responsible for issuing tenders, implementing the project, and operating the assets under a public service obligation. The full interconnector capacity will be made available to Enemalta, Malta’s electricity distribution system operator, under a capacity agreement, with an annual tariff charged for its use.

The EIB in Malta

The European Investment Bank (EIB) has been supporting the Maltese economy since before the country’s accession to the European Union, with its first project signed in 1979 to help expand the commercial port of Valletta Grand Harbour. Since then, the EIB Group’s financing in Malta has exceeded €1 billion, aiding vital sectors such as SME access to finance, urban regeneration, climate action, and telecommunications. The EIB has also supported landmark infrastructure projects that have transformed the heart of Valletta, including the Parliament building and the open-air theatre at the City Gate. As the EU’s long-term lending institution, the EIB remains committed to promoting sustainable investment and fostering economic resilience in Malta and across Europe.

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“A new Nationalist Government will ensure that the challenges being faced by local companies are addressed and that they are given the support they need not only to continue growing and investing in our country, but also to expand into foreign markets beyond our shores,” Borg said.

His comments came at the end of two visits carried out on Wednesday morning, during which he met workers and held discussions with management, a statement said.

The PN leader visited the Foster Clark factory in San Ġwann and later the headquarters of Camilleri Group in Ħandaq, describing both as family businesses that have grown, diversified into different sectors, and expanded into international markets.

At Foster Clark, a food manufacturing company, Borg was welcomed by company officials and shown around one of the factories, where he met workers and observed the production processes behind products including custard, jelly, beverages, dessert mixes, cake mixes, essences and food colouring.

Apart from Malta, the company has manufacturing plants in Saudi Arabia and Italy, while more than 99% of its production is exported to 80 countries worldwide, including products made specifically for overseas markets.

In San Ġwann, Foster Clark, which forms part of the Francis Busuttil & Sons Group, operates three factories across seven blocks. The group employs around 1,000 people, 400 of whom work directly with Foster Clark.

During a meeting with Borg, company representatives spoke of the challenges they are facing as well as their ambitions to continue expanding.

Borg was shown various sections of the factory, including areas where automation and advanced technology using robots are employed, and praised the company’s commitment to investing in workers through continuous training, as well as skilling and re-skilling.

Foster Clark Managing Director Joseph Busuttil, Operations Director Paul Demanuele and Distribution Managing Director Kris Lanzon thanked Borg and the party delegation for the visit, and spoke of the importance of support for Maltese businesses to continue growing.

Borg was accompanied during the visit by PN MPs Ryan Callus and Jerome Caruana Cilia, PN candidates Jonathan Muscat and Marilena Gauci, and PN CEO Sabine Agius Cabourdin.

From San Ġwann, Borg proceeded to Ħandaq, where he visited the headquarters of Camilleri Group and was welcomed by directors Tonio, Joseph and Andrè Camilleri, as well as CEO George Debono.

Best known for the Camilleri tal-Ħelu shop in Valletta, the family business dates back to 1843.

Over time, the group has diversified beyond confectionery, including through C Camilleri & Sons, which imports confectionery, provides catering services for events such as weddings, supplies restaurants and school tuck shops, and has also expanded into the clothing and fashion sector with brands including Matalan, Mothercare, Promod and Morgan.

The group operates 25 outlets across Malta and employs 220 full-time workers.

During discussions with Borg, the directors spoke of the importance of a level playing field in the sector, as well as other challenges they face, with Borg reiterating that a future Nationalist government would support companies by addressing such difficulties.

The PN delegation was also shown around the group’s warehouse, confectionery section, kitchen and offices, with Borg meeting employees working in various departments, including retail, HR, finance, marketing and sales.

Borg praised the company’s resilience and its ability to diversify despite challenges over the years.

He was accompanied during this visit by PN Deputy Leader Alex Perici Calascione, Secretary General Charles Bonello and PN MP Adrian Delia.

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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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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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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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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

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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.

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