Since we have been addressing misconceptions, let us continue along the same lines.
Rumours and accusations that Finance Minister Clyde Caruana invented Malta’s foreign-labour recruitment policies when he was head of Jobsplus are entirely false. The head of Jobsplus does not dictate the country’s economic policy. Jobsplus primarily acts as an employment agency and labour-market information service; it does not determine the government’s immigration or economic strategy.
Don’t be ridiculous.
The expansion of third-country national recruitment took place under the Joseph Muscat administrations. This was done in conjunction which private agencies that facilitated recruitment, through cash for visa-schemes which quickly evolved into multiple corruption rackets.
The Finance Minister is now pursuing a fiscal policy intended to attract higher-quality labour and tourism while making Malta a less attractive destination for those whose presence adds pressure to the country’s infrastructure and public services without generating sufficient economic value.
This is very clear.
Alongside new charges targeting third-country nationals, include charges for public transport and restrictions on access to free childcare for affected families, a €33 monthly charge for using buses and ferry services, and a €83 charge for those driving a car.
The government has also sharply increased the eco-tax for tourists. From 1 January 2027, visitors staying in hotels, guesthouses and other collective accommodation will pay €8 per person per night, capped at €64 per stay. Those staying in short-let apartments will pay €10 per person per night, capped at €80. The contribution applies to adults aged 18 and over. Visitors to Comino will also face a new €5 contribution. The government expects the higher accommodation charges to generate substantial additional revenue.
The government has also sharply increased the eco-tax for tourists. From 1 January 2027, visitors staying in hotels, guesthouses and other collective accommodation will pay €8 per person per night, capped at €64 per stay. Those staying in short-let apartments will pay €10 per person per night, capped at €80. The contribution applies to adults aged 18 and over. Visitors to Comino will also face a new €5 contribution. The government expects the higher accommodation charges to generate substantial additional revenue.
An important critique to pose about these policies is whether economic policy is matching the proposed fiscal policy by the Finance Minister. For this correspondence to take effect, the Ministry of Economy needs to focus on the creation of jobs in high-value industries, such as high-end manufacturing. Some small steps seem to be taking place, but this policy should be applied on a much wider scale especially with the work of Malta Enterprise. The budget for Malta Enterprise has been increased from €12.5 million to €13.7 million.
On the other hand, the Malta Tourism Authority needs to change its current marketing policy of promoting Malta as an Ibiza-like party island to promoting Malta’s art, history and culture (not the bird-killing type). This requires a complete over-haul to MTA and the Ministry of Tourism. Its expenditure on all these parties, which are commercially profitable even without public subsidies, should be cut and the expenditure transferred to more meaningful and valuable activities such as history, culture and national heritage. So far we have to see any announced changes to the current MTA and Tourism Ministry policies.
The government has a major task ahead if it is follow its fiscal policy as, essentially, it needs to overhaul the economy. There doesn’t seem to be a lot of effort or concern so far.
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Historian and Publisher
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