Last week, I addressed economic growth and noticed my message was misunderstood. Some readers assumed I blamed voters for lacking economic knowledge, often without reading the article. The article clarified that misunderstandings about growth typically come from professionals outside the field, such as lawyers and doctors, who write about economics as if they are experts. This would be similar to me offering medical or legal advice without proper expertise.
Additionally, based on reader feedback, I will begin using subtitles to improve article clarity.
Age-restricted short lets and residential quality of life
Tourism is a relevant example. It is positive that tourists enjoy Malta’s attractions and that locals benefit from short-term rentals. However, our priority should be quality growth in tourism, rather than simply increasing visitor numbers. Excessive short-term rentals in residential areas are diminishing residents’ quality of life. While I support individuals earning income from short-term lets, property owners must ensure they do not disturb their neighbours. It is unacceptable to profit by permitting disruptive groups, such as rowdy teenagers, to compromise the peace of residents who have invested in their homes.
To address issues in busy areas, one solution is to restrict short-term rentals based on age. For instance, regular bookings could be prohibited for groups with an average age below 23 or 25. Authorities and rental platforms are aware of which age groups tend to cause disturbances. Private short-term rentals in these hotspots should be restricted for groups under 23 or 25, with exceptions for verified families, business travellers, licensed hotels or hostels, and longer stays. Long-term students under the age threshold would be considered separately. Platforms should require identity verification at booking and check-in, block non-compliant bookings, and display license numbers. Young tourists would still have access to hotels, which provide their own security away from residential blocks.
Furthermore, trained civilian teams are needed to address noise complaints, antisocial behaviour, and waste issues in busy neighbourhoods, and to issue prompt penalties when necessary. These teams should collaborate with the police, local councils, and rental platforms, and be funded through special levies in affected areas. Public reporting and robust oversight are essential. The Malta Tourism Authority has established occupancy rules, including lower limits in residential zones. We should also consider mandatory quiet hours and update existing regulations. While some residents have suggested military involvement out of frustration, it is important to maintain a clear distinction between military and civilian responsibilities.
Polluter Pays Principle for noise pollution
Pollution extends beyond the environment; noise pollution is a significant concern. The Polluter Pays Principle should be applied to noise in residential areas, recognising it as a genuine social harm and making it a priority. Excessive noise in densely-populated neighbourhoods with many short-term rentals should be treated as an environmental issue with tangible social costs. Efforts should begin in high-tourism areas such as Swieqi and surrounding zones. Other countries use sound sensors on streets and buildings to monitor noise during nights and weekends. Although these are not airport zones, a minimum decibel standard should be established to ensure residents’ peace. We should pilot sensor based thresholds and adopt a provisional residential night time decibel standard, to be refined after pilot results. While the government has previously increased revenue through economic growth rather than new taxes, it is now necessary to consider the polluter-pays principle. High-risk areas should impose additional noise charges on frequent short-term rentals and the platforms that facilitate them. Funds collected should support soundproofing grants, improved sanitation, and enforcement teams.
Tax policy can influence outcomes. Establishing special zones and implementing higher short stay surcharges in high-risk areas, particularly in the ninth and tenth districts, would support these neighbourhoods. Revenue should be allocated to neighbourhood improvements, soundproofing, community services, waste management, and security. Oversight should occur at the EU level, as platforms often disregard local data requests. Platforms must be required to remit payments, report transparently, and face penalties for non-compliance. A transition period until 2029 is recommended: the first year for mapping and registration, the next two years for sensor testing and age rule enforcement, and by the third year, full implementation of hotspot taxes and removal of non-compliant listings if necessary. Exemptions should apply to long-term stays, workers, families, and students, with additional support for residents such as soundproofing grants and accessible complaint processes.
Quality growth and sectoral priorities
When discussing growth, it is important to understand the key measures and principles of economic development and their broad application. Our current focus should be on quality growth, which involves evaluating each sector individually. Malta, for example, can prioritise its top 60 main sectors, ranging from services to manufacturing. Authorities must determine which sectors to prioritise for future support. I am not suggesting we close any industries but rather pause expansion in sectors that do not deliver high-quality growth and concentrate on those that achieve better outcomes with fewer resources. As reiterated last week, when discussing growth, it is important to understand the main measures and principles of economic development and their global application. Credit rating agencies and the European Commission primarily use debt-to-GDP and deficit-to-GDP ratios.
Lastly, if we want to be serious, noise pollution in crowded residential streets must be addressed as both an environmental and social issue. People are not against such measures. Certainly, people want us to measure, charge for, and enforce noise regulations, as well as implement age-based booking limits, apply hotspot taxes, and ensure dedicated enforcement. Residents in these areas are requesting these changes to protect their communities and promote higher-quality tourism.
