The Malta Independent 23 July 2026, Thursday
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A budget that gives no incentive to tourism

Julian Zarb Saturday, 8 November 2025, 10:13 Last update: about 10 months ago

This week the news was focused on another evening of "Hurrah....three cheers for us"; the budget gave nothing about how to incentivize and motivate the socio-economic and socio-cultural aspects that drive a better quality of life for the local community.

I was scanning over the budget speech, as one does after the three-hour spectacle in Parliament. I was really looking for some hopeful initiatives and incentives for tourism. By this I do not mean how the numbers have grown (Caruana had given an interview about carrying capacities, but the question is: what is he ready to do to manage these capacities for tourism?). I thought I might dedicate this article to the budget speech on tourism, we may just find some glimmer of light towards sustainable and quality tourism. Let us have a try, and then I will give my six ways in which we ought to manage tourism. The very short mention of tourism looks at the past rather than how these islands are going to manage tourism over the next few years, let us see what pearls of wisdom have been analyzed:

1) The History of Tourism: For many years, the primary challenge for those in the tourism industry in Malta has been attracting enough tourists.

2) Tomorrow's economy demands quality not quantity. In recent years, we have expanded our seasonal offerings to attract tourists throughout all four seasons. By the end of this year, we expect to reach a total of 22 million overnight stays in our country.

3) The diversification of the tourism market has been developing over the last 20 years. Connectivity was improved with the introduction of low cost carriers in the early 21st Century.

4) Tourist expenditure is not based on spending more on quality services, but on increased costs.

5) We are working to integrate the skills pass in the hospitality industry to improve service quality in our restaurants and hotels for both local and foreign tourists. There is no account of investing in tourism research and studies through the University of the Vocational studies.

6) Prioritising quality over quantity is also relevant in Gozo. A bit late I must add since Gozo is being destroyed by the developers and by a lack of sustainable development practice (despite a report prepared on sustainability in Gozo in 2022).

So what are the six stages that should have been included in the pre-election budget concerning tourism? These are:

1) Tourism needs a consistent and continuous review to assess the investment required that will maintain a sustainable and successful activity.

2) Tourism should not be based on quantitative results and forecasts but on qualitative research and study.

3) Investment in people for tourism does not mean employing locals or foreigners simply to cover for the jobs needed but to encourage career building and motivation to "go the extra mile". There was no sign of this investment in the budget!

4) Value for experience needs to take priority over value for money. This means that we need to look for adding real value to the tourist experience not increasing costs to give the impression that revenue from tourism is increasing.

5) There was no mention of the alternative tourism - such as the Community-Based Tourism being developed by the Malta Tourism Society. This will add value to the tourism experience.

6) Finally, Tourism deserves a real strategy and policy, not some cack-handed direction!

By following these six stages, we can ensure that these islands are managed professionally, sustainably, and with the idea of developing a quality activity that attracts the visitor who wants to be here. Travel and Tourism to these islands today is about quantitative gains for the greedy and uncouth. We need to put professionalism and hospitality back in the equation.

Dr Julian Zarb is a researcher, local tourism planning consultant and an Academic in Malta and the UK. He has also been appointed Chair of the Institute for Hospitality Mediterranean. His main area of research is community-based tourism and local tourism planning using the integrated approach.


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