Malta Plans Sharp Tourist Tax Hike to 8 Euros per Night in New Budget

Malta plans to sharply increase its tourist tax to 8 euros per night for hotels and 10 euros for rentals under the 2027 budget, aiming to curb infrastructure pressure.

Malta Plans Sharp Tourist Tax Hike to 8 Euros per Night in New Budget
Photo: Israel Hotel Association / יח״צ

Malta is set to significantly increase its tourist tax as part of the proposed 2027 budget presented by Finance Minister Clyde Caruana. Under the new proposal, starting in January, hotel guests will pay 8 euros per person per night, a dramatic rise from the current rate of 1.50 euros. Travelers staying in holiday apartments, such as those rented via Airbnb, will face a fee of 10 euros per night.

To put this steep hike into perspective, the tourist tax stood at just 0.50 euros per night until last July, when it was raised to 1.50 euros. The upcoming adjustment represents a massive increase compared to the beginning of the year. Additionally, the maximum cap for the tax per single stay is rising, with hotel guests paying up to 64 euros and apartment guests up to 80 euros for a single trip. For instance, a couple spending a week at a Maltese hotel will pay 112 euros in total taxes, compared to 21 euros today. Cruise ship passengers disembarking for a tour will be charged 10 euros, while visitors to the small island of Comino will continue to pay a 5 euro fee.

According to the government, the new tax is projected to generate approximately 182 million euros annually. "We cannot ignore the fact that tourism creates pressure on our infrastructure," Finance Minister Caruana stated. Malta, a nation with a population of slightly over half a million, welcomed around 4.7 million tourists last year. Even the president of the Malta Hotels and Restaurants Association, Tony Zahra, has previously acknowledged that the island struggles to cope with such visitor volumes.

Despite the government's focus on infrastructure relief, local media reports indicate that the hotel association was surprised by the steepness of the tax, having anticipated a figure of around 5 euros. The proposed measure is not yet final, as it remains a draft provision within the budget and must undergo parliamentary legislation before taking legal effect.

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