Malta Plans Sharp Tourist Tax Increase; Opposition Objects
Malta's 2027 budget would raise the nightly tourist tax in hotels from €1.50 to €8. Opposition leader Alex Borg says the higher rate should apply only during the peak season.
Malta, a Mediterranean island state and European Union member popular with Latvian travellers, is preparing to raise its tourist tax significantly. Under changes set out in the 2027 budget, the charge for hotel stays will rise from the current €1.50 to €8 per night, while short-term rental accommodation will be charged €10 per night, according to the Times of Malta. The changes could make trips to the country more expensive.
Opposition objections
Alex Borg, leader of the opposition Nationalist Party (PN), objects to applying the higher tax all year round. In his view, the increased rate should apply only during the active tourist season, from May to October. He warns that a year-round increase could add financial pressure for hotels and other tourism businesses, especially in the quieter months, when room prices are already lowered to attract more visitors.
Borg said the party does not object to tourists contributing more to national tourism infrastructure, but questioned whether the government has clearly explained what the additional money will be used for.
New charges for foreign workers
The opposition leader also criticised new budget payments for workers from countries outside the EU. Those without permanent residence status will have to pay €400 a year to renew a work permit, plus a new monthly fee of €83 for using a private car, which comes to nearly €1,000 a year. These workers will also lose the right to free childcare and public transport.
Borg believes the costs will affect employers and consumers too. Since the budget was announced, foreign workers have already asked employers for pay rises, and the extra expenses could end up in the prices of goods and services.
He accused the government of lacking a long-term economic development plan and called for a population management authority and a national demographic plan, saying a growing population is straining hospitals, roads, schools, energy infrastructure and public safety services. Opposition spokesman on justice Joe Giglio stressed that the country needs a policy that boosts productivity, not just population growth.
