MHRA welcomes tourism reform, calls for strong enforcement across all accommodation types

The Malta Hotels and Restaurants Association (MHRA) has welcomed the new accommodation reform announced by Deputy Prime Minister Ian Borg, describing it as a significant step towards a more sustainable and quality-driven tourism model for Malta.

“This is not a battle against short-lets but a call for consistency, quality, and fairness, ensuring that all forms of accommodation enhance the tourism product rather than cause uncontrolled disruption,” the MHRA stated.

The proposed legislation, tabled in Parliament on Wednesday, introduces changes to Malta’s tourism accommodation sector. This means that hotels will no longer be permitted to exceed height limits set out in Local Plans, removing the previous allowance for two additional storeys. New capacity limits will cap hotels at 200 rooms, guesthouses at 20 rooms or 40 beds, and hostels at 40 beds.

Short-term rentals will face strict restrictions, with a maximum occupancy of six people per unit regardless of size. All short-let properties must display visible exterior signage showing their licence number and 24/7 contact details, ending the era of “ghost hosts.”

A mandatory three-month cooling-off period between long-term leases and short-let licences also aims to preserve the residential rental supply.

The MHRA said the reforms signal a decisive move from volume-based growth to a tourism strategy focused on sustainability, whilst recognising that visitor numbers remain essential for Malta’s competitiveness and the vitality of its hospitality sector.

The association emphasised short-term rentals, now an integral part of Malta’s accommodation mix, must be regulated and managed with the same responsibility, service standards and enforcement applied to collective accommodation such as hotels and guesthouses.

The MHRA welcomed the pilot consultations with Swieqi and Valletta local councils, viewing them as an important opportunity to refine and test the new framework before national extension.

These pilot projects should prioritise waste management, accessibility and neighbourhood integration, the association said.

However, the MHRA noted that some opportunities to enhance standards appear to have been overlooked, particularly better regulation of three-star hotels and measures such as separate entrances for short-term rentals in shared residential buildings.

The Association called for the Malta Tourism Authority to be fully resourced and empowered to implement the rules effectively, with the approach prioritising raising quality through staff training, rigorous standards enforcement and fair but firm compliance.

“The success of these reforms will ultimately depend on proper enforcement and clear interpretation of the regulations,” the MHRA stated, adding that operators who fail to meet minimum requirements should be removed from the market.

The Association commended the Malta Tourism Authority for its work in advancing quality standards and regulatory oversight, noting that the reform builds on principles outlined in the Carrying Capacity Study conducted by Deloitte and commissioned by MHRA.

The reforms must be viewed alongside other initiatives to elevate visitor quality, including improved connectivity to new markets such as New York, the capping of visitors in Comino and other interventions aimed at raising standards across the sector.

If managed effectively, the MHRA said, these reforms have the potential to deliver a higher-quality, better-balanced and more competitive tourism sector that benefits both the economy and local communities.