Proposed law seeks to reform accommodation sector in Malta

A new private member’s bill tabled in Parliament on Wednesday proposes sweeping reforms to Malta’s tourism accommodation sector, aiming to prioritise quality, sustainability and respect for communities over unrestrained expansion.

Under the proposed Tourism Accommodation Regulations, hotels will no longer be allowed to exceed height limits set out in Local Plans — removing the previous allowance that permitted buildings to rise two additional storeys.

The change marks a shift from “volume-based” growth towards sustainable, design-driven development.

The bill, tabled by Tourism Minister Ian Borg, also introduces strict new limits on accommodation capacity. Hotels will be capped at 200 rooms, guesthouses at 20 rooms or 40 beds, and hostels at 40 beds. Short-term rentals will be restricted to a maximum of six occupants per unit.

Short-let properties will face a strict occupancy cap, with no more than six people allowed per unit, regardless of size. The measure is intended to prevent overcrowding, reduce strain on infrastructure and maintain the residential character of neighbourhoods increasingly affected by tourist accommodation.

The proposed legislation also imposes a mandatory three-month cooling-off period between the end of a long-term lease and the start of a short-let licence. The measure seeks to curb the rapid conversion of residential properties into tourist accommodation and preserve the long-term rental supply.

In an effort to increase transparency, all short-let properties will be required to display visible exterior signage showing their licence number and the contact details of a 24/7 responsible person for complaints or emergencies.

This measure, described as a move to end the era of “ghost hosts,” aims to promote accountability and reassure residents that short-lets will be properly managed within neighbourhoods.

The overarching goal of the bill is to balance tourism growth with sustainability and community well-being.

Pilot projects will be launched in Swieqi and Valletta through their local councils, with successful outcomes and best practices expected to be extended to other localities across the country.

If approved, the new framework would redefine the direction of Malta’s tourism industry, embedding responsibility and quality at its core.