The Gozo Tourism Association (GTA) said that it has analysed the tourism-related measures announced in Budget 2027 and noted that the budget is seeking to ”address some of the challenges arising from the continued growth in tourist arrivals while also taking the first steps towards streamlining the engagement of foreign workers.”

However, the GTA said that ”while no additional tax burdens have been placed on families and workers, it notes with concern that several increases have been directed towards the tourism sector. These measures risk negatively impacting the industry’s competitiveness, particularly in Gozo, where tourism remains one of the main pillars of the economy.”

The Gozo Tourism Association acknowledged the Government’s objective of strengthening environmental funding through the revised eco-contribution regime. However, the Association expressed ”serious concern regarding the decision to impose a higher eco-contribution on short- let accommodation than on hotels.”

The Association warned that ”this distinction will have a disproportionate impact on Gozo, where approximately 72% of the island’s tourism bed stock consists of short-let accommodation, including holiday apartments, farmhouses and villas, while only 28% is represented by hotels. Consequently, this measure will affect the majority of visitors who choose to stay in Gozo, creating an uneven playing field between accommodation sectors that compete within the same market. Moreover, average annual occupancy rates in Gozitan accommodation establishments remain below those achieved in Malta, placing operators in Gozo at a further competitive disadvantage.”

The Association said that it firmly believes that environmental contributions should be applied fairly, consistently, and equitably across all licensed accommodation categories to ensure a ”level playing field and avoid disproportionately impacting one segment of the tourism industry.”

It added that ”furthermore, the increase may negatively affect Gozo’s domestic tourism market, which has remained resilient and continues to play an important role in sustaining tourism businesses throughout the year. Additional costs imposed on short-let accommodation could influence the decision-making process of Maltese residents considering short breaks on the island.”

The GTA insisted that ”the measure becomes even more difficult to justify given that the eco-contribution collected from accommodation establishments in Gozo is not ring-fenced and reinvested directly into the enhancement of Gozo’s tourism product and infrastructure.”

The Association maintained that ”if visitors are expected to contribute more towards environmental and tourism sustainability, a fair share of these funds should be directed towards improving the destination from which they are generated.”

The GTA also noted the announced increases in ferry fares applicable to tourists travelling to Gozo. ”While recognising the importance of ensuring the long-term sustainability of transport services, the Association is disappointed that the budget does not include any corresponding investment measures aimed at enhancing inter-island connectivity such as the development of the rural airfield. Improving connectivity infrastructure between Malta and Gozo remains one of the key priorities for the island’s tourism sector.”

The Association acknowledged the Government’s commitment to continue maintaining stable rates for electricity, gas and fuel despite continued pressures from international energy markets. ”These measures provide much-needed certainty to households and businesses, including operators within the tourism industry who continue to face increasing operational costs.”

The GTA also noted the announced revision to the incentives currently granted to airlines servicing the Maltese Islands. The Association welcomed the intention of directing such incentives towards attracting visitors during the shoulder and winter months, which remains essential in strengthening seasonality management and improving the sustainability of tourism throughout the year.

The Gozo Tourism Association stated that it ”remains committed to working constructively with Government and all stakeholders to ensure the sustainable development of the tourism industry. While the Association welcomes a number of measures aimed at maintaining economic stability and strengthening year-round tourism, it believes that certain tourism-related increases announced in the budget place a burden on Gozo and risk undermining the island’s competitiveness.”

It concluded by saying that ”only through a fair and balanced approach can Gozo continue to thrive as a distinct and competitive destination within the Maltese Island.”

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