One of the measures announced by Finance Minister Clyde Caruana during his Budget speech last Monday was the increase of Malta's eco-contribution for tourists from €0.50 to €1.50 per tourist per night.
It is essentially the only 'tax' of sorts that the government has decided to increase. The eco-contribution is a mandatory charged paid by each tourist when they visit and stay in Malta and it has been in place since 2016.
The contribution since then has stood at €0.50 per night with a cap of a maximum of €5 for a continuous stay. The intention of the contribution is for the money to be re-invested in the infrastructure of touristic areas. As of 2026, the contribution will triple.
The measure was met with a strong objection from the Federation of English Language Teaching Organisations Malta (FELTOM) on Wednesday - an objection which was disproportionate when considering the nature of the measure.
In a statement, FELTOM said that the measure risks serious harm to the English Language Teaching (ELT) sector, the broader tourism economy, and Malta's reputation as a quality destination for educational travel.
FELTOM said that the tax will apply to all students aged 18 and over, a fast-growing segment within FELTOM-accredited schools that represents long-stay, quality-focused learners rather than short-term summer visitors. These students contribute substantially to accommodation, local commerce, and cultural engagement. Penalising them undermines one of Malta's most sustainable tourism niches.
"The ELT sector is highly price-sensitive, and a threefold increase in costs will make Malta less competitive against other study destinations, reducing both length of stay and overall spending," the federation said.
What needs to be pointed out is that this "threefold increase in costs" is an increase of just €1 per day. To say that a €1 increase per day risks Malta's touristic economic and Malta's reputation as a quality destination for education travel is wildly disproportionate.
With an eco-contribution of €1.50 per day, Malta would still have one of the lowest such taxes in Europe.
Greece, for instance, have a tourist tax of €8 per day, and a Climate Resilience Tax over and above that which can range from €1 up to €10 per night. In the off-season the tourist tax reduces to €2 per day, and the environmental tax to between €0.50 and €4 a day.
Some cities in Portugal, for instance, also charge a tax of €2 per person per night, while the Spanish city of Barcelona - which has been feeling the brunt of over-tourism - charges a city tax of €4 per person per night together with a tourist tax of between €1.70 and €3.50 a night.
In Italy, Rome sets a tourist tax ranging from €3 to €7. In Milan, it's between €2 and €5, and in Florence it ranges from €1 to €5. Plenty of other major cities and tourist destinations have other similar taxes and fees for tourists.
It is a fact that over-tourism has become a problem, and Malta is no different. The impacts can be seen in touristic hotspots, especially during peak seasons, and the impacts have only gotten worse.
The government's proposed increase is miniscule compared to the travel cost of a trip to Malta, and it is ultimately so to increase the investment that can be made in touristic hot spots which have had to deal with the adverse effects of over-tourism.
It's an agreed upon belief that Malta needs to channel itself towards more quality tourists. If there are travellers who are going to be put off by a €1 per night increase in cost, then, quite frankly, they're not tourists which the country should want anyway.