Opposition Leader Alex Borg has warned that Malta is attracting more tourists but generating less expenditure from each visitor, with average tourist spending falling from €919 in 2015 to €771 in 2025.
Addressing the Nationalist Party's Business Breakfast on Budget 2027, Borg said the figures, which he attributed to the Chamber of Commerce, raised questions about the sustainability and quality of Malta's economic growth.
He pointed out that four million tourists visited Malta in 2025, but argued that the increase in visitor numbers was not translating into greater economic value. Instead, he said, the growing number of tourists was placing additional pressure on the country's infrastructure, environment and public services.
Borg also outlined the PN's counter-proposal to the government's proposed tourist eco-contribution, which would see visitors paying €8 per night in hotels and €10 per night in short-let accommodation.
The Opposition Leader proposed that the charge should only apply between May and October, during the peak tourist season, arguing that operators should not face additional costs during the quieter months. He also called for the funds collected to be reinvested in tourism, cleanliness, infrastructure and the environment.
Turning to the wider economy, Borg questioned the sources of Malta's economic growth and whether the current model could be sustained.
While acknowledging that the economy was growing, he said the main concern was where that growth was coming from. He said that 69% of economic growth was attributable to an increase in foreign workers, while only 3% came from improved productivity.
He pointed to productivity growth of 2.2% in 2023 and 0.2% in 2024, before it turned negative in 2025.
Borg said the PN was proposing a number of measures to improve productivity, including incentives for businesses to invest in automation, digitalisation and artificial intelligence, greater investment in skills development, reduced bureaucracy, the creation of new economic niches, and incentives for research and innovation.
He also highlighted the shortage of specialised skills as a major challenge for businesses and foreign investment.
Citing an EY survey, Borg said 63% of foreign investors considered the lack of skills a significant risk, while 69% reported difficulties finding specialised skills in the local market. Meanwhile, 42% of businesses considered the shortage of workers a major problem.
To address this, the PN is proposing the establishment of a dedicated authority to connect the country's economic needs with skills development and regulate the recruitment of foreign workers.
Other proposals include schemes to encourage Maltese professionals working abroad to return to the country, continuous training and development for workers, and assistance for businesses investing in training, technology and innovation.
Borg also linked productivity to workers' living standards, arguing that higher productivity was essential to securing sustainable wage increases.
Concluding his address, Borg said the PN's economic priorities were to increase productivity, strengthen skills, promote quality employment and better wages, generate greater economic value from every tourist visiting Malta, and ensure a more sustainable future.