Study predicts 0.3% economic growth as a result of increased hotel building limits

An independent study carried out by economists at the Central Bank confirmed that allowing hotels to increase their building limits would have a positive effect on the economy.

In September, MEPA announced that existing and future hotels, three-star or higher, could extend their premises if they adhered to specific criteria. Those in scheduled or conservation zones are not covered by the policy.

The study by the Central Bank, available here, predicts an annual economic growth of 0.3%. Some 18 hotels are expected to expand their premises, with an investment of €100 million, over four years, seeing an increase in 1,100 beds.

A 0.4% increase in employment, or about 1,000 jobs, is also predicted. The economic growth is also expected to counteract government deficit by 0.1% of the GDP.

An increase in nights spent by travelers to Malta is also predicted, between 150,000 and 300,000.

Coupled with investment in the marketing of the touristic product, particularly winter tourism, the predicted macroeconomic impact is expected to be significant.

In a press statement, the government has committed itself to strengthening the tourism industry. Measures such as the reduction in energy tariffs and those put forward in the 2015 Budget will continue to sustain job growth.