Malta to triple tourist eco-contribution from July

Katrina Cassar

Deputy Prime Minister and Tourism Minister Ian Borg on Thursday announced a series of tourism-related measures and proposals aimed at improving the quality of Malta’s tourism product and supporting investment across the hospitality and cruise sectors.

The measures were announced during a press conference in St Julian’s attended by Borg, Parliamentary Secretary Alison Zerafa Civelli and Labour candidate Cressida Galea.

Among the key announcements was an increase in the eco-contribution charged on tourist overnight stays.

Zerafa Civelli said the fee will rise from 50 cents to €1.50 per person, per night, as from 1 July, 2026. The move is a measure which had been announced for this year’s Budget.

She also announced that 50 cents collected from each contribution will be allocated directly to Local Councils, with funds distributed according to the impact of tourism activity on each locality.

Borg said that the tourism industry has reached a stage where operators are reporting strong results even during the traditional shoulder season, prompting the government to shift its focus towards improving quality standards within the sector.

As part of this approach, the government is proposing a new tax credit scheme for tourism accommodation providers investing in renovation projects, higher standards, and improved customer experiences.

The scheme is intended to encourage upgrades to existing tourist accommodation establishments.

Another proposal targets Malta’s restaurant industry, which Borg described as a highly diversified and high-quality sector that must remain competitive.

Government said it plans to establish a €30 million fund dedicated to investment in restaurants.

Independent restaurants will be eligible to apply for grants of up to €300,000 to improve their product offering, enhance customer experience, train employees, or renovate their premises.

Borg also outlined plans to continue investing in cruise liner infrastructure at the Grand Harbour as Malta seeks to expand its home-porting operations and attract more luxury cruise liners.

Borg said that Malta has become a strategic pillar in the Mediterranean cruise industry, with close to one million passengers using the country’s ports annually.

He said voyages beginning or ending in Malta generate greater economic value for the local economy compared to transit visits.

Addressing questions from journalists about whether the new measures amounted to an acknowledgment of over-tourism in Malta, Borg rejected the suggestion and defended the importance of the tourism industry to the country’s economy.

Borg said the government would not accept statements that “undermine business, undermine investment, and undermine a sector that is crucial to our country’s economy.”

He said the government remained conscious of tourism numbers and the need for sustainable growth, while noting that many countries aspire to attract similar visitor figures.

“It is important that we grow intelligently and grow with quality,” Borg said, describing this as the main challenge facing the sector moving forward.