Government outlines economic and tourism vision for Malta’s next 25 years

Deputy Prime Minister and Tourism Minister Ian Borg, as well as Economy Minister Silvio Schembri, on Wednesday spoke about the government’s plans for sustainable growth, stronger investment quality, and improved quality of life.

In a joint press conference, the two ministers said that Malta is entering a “new phase” of development, one focused not only on economic expansion but also on improving people’s quality of life, as the government prepares to implement its Vision 2050 strategy.

Borg said that Malta’s tourism sector had reached record highs in visitor numbers and guest nights, but must now address new challenges.

“Tourism is not just about hotels and restaurants, it is about people. The Maltese are part of the product,” Borg said, stressing that the hospitality of residents is central to the sector’s success, as tourists are welcomed by the Maltese.

He spoke of the increase to the eco-contribution paid by tourists, to strengthen public revenue, with proceeds reinvested in projects that “directly benefit residents.”

A pilot project in Swieqi and Valletta have already shown promising results in improving waste collection and addressing short-stay accommodation issues, with Borg to be expanding on this during his address for the Budget for his Ministry.

“We will replicate what works and improve what doesn’t in other localities,” Borg said, adding that better regulation of accommodation and improvements to key areas like Paceville are priorities, adding that government is seeking to improve Paceville’s aesthetics.

“The first projects to upgrade internal streets will be accompanied by more enforcement and coordination between authorities,” Borg said.

The government is also working to diversify source markets and extend the tourism season, with Borg mentioned upcoming routes, including Delta Airlines flights to New York and the return of Qatar Airways, which he said would enhance competition and connectivity.

He continued that training and skills remain crucial, as tourism is a sector where human presence is essential, but technology can help improve efficiency.

Borg said that the Skills Pass programme will be extended beyond tourism to all sectors, to create a level playing field across industries.

He said that marketing efforts will also increase to showcase Malta’s cultural and historical identity, as a “place where many civilisations met and left their mark.”

Borg said that next year, Malta will host an international tourism industry summit, bringing global leaders and investors to the island.

“We must continue understanding people’s sentiments and working on them,” Borg said.

Minister Schembri said that while Malta had enjoyed “remarkable economic success” over the past decade, the country must now take the next courageous step to measure success not only through GDP but also through living standards and social well-being.

“The economy is not static, it changes every day. We’re now focusing on human development, disposable income, and quality of life,” Schembri said.

Schembri said that international institutions, including the IMF, forecast Malta to remain among the EU’s fastest-growing economies. However, growth must go hand in hand with fairness and sustainability, he said.

To guide this transition, the government is launching Malta’s first industrial policy, designed to give local and foreign investors clear direction and long-term confidence.

“We want to incentivise high-value investment and disincentivise what doesn’t fit our future,” he said, speaking of upcoming legislation to regulate INDIS and Malta Enterprise.

Schembri said that 2024 saw the highest quality and value of foreign direct investment (FDI) ever recorded in Malta, a promise he said would be surpassed next year.

“It is not about the number of projects, but their value,” he said.

He said that unprecedented measures would soon be introduced to support Maltese companies in automation and innovation, reducing dependence on foreign labour.

“Government will finance up to 60% of investments through tax credits, we want Maltese firms to grow and elevate their products,” he said.

Schembri said that the government will dedicate €100 million to help businesses digitalise and adopt artificial intelligence, while €40 million in schemes will target SMEs.

“In a digitalised world, microchips are the new oil,” he said, adding that Malta’s STMicroelectronics plant will double its capacity through automation, without increasing employees.

Schembri said that Malta has positioned itself on the world map for semiconductors and is working with IMAC on AI and data infrastructure. A new submarine data cable will also boost resilience against cyberattacks and ensure connectivity, he said.

Schembri spoke of initiatives to make Malta “AI-literate”, including free accredited online AI courses open to all citizens.

He also spoke of upcoming legal changes allowing 16-year-olds to start and manage businesses under a new “sandbox” system until they reach 18.

“We want to cultivate an entrepreneurial culture, not just train young people to find jobs,” he said.

Support for start-ups will expand, with grants starting from €10,000 for innovative ideas and rising to millions as they scale, he said.

“Some of these start-ups are even investing in culture and the Maltese language,” he said.

To address mental health in the workplace, Malta Enterprise will launch a scheme helping private companies support employees’ well-being, he said.

Schembri said that family business schemes will be extended, while a new MicroInvest measure will reward SMEs that raise salaries for long-serving workers, as the government will cover 65% of the increase in Malta and 80% in Gozo for two years.

Schembri said these measures were designed to sustain competitiveness and push the country toward “smarter growth” through digitalisation and high-value jobs in aviation, fintech, blockchain, and logistics.

“Our economy is strong so that Maltese and Gozitan families can be strong too,” Schembri said.