Tourism authority to block hotel height concessions

The Malta Tourism Authority (MTA) will be central to enforcing government’s decision to stop hotel height concessions currently allowed by planning policies, MaltaToday has learnt. 

New rules will prevent the MTA from approving projects that exceed local height limitations thus circumventing the need for a lengthy process to change planning policy. 

In replies to questions, the Tourism Ministry confirmed that under the forthcoming legal notice, the MTA will not be in a position to issue a Tourism Policy Compliance Certificate (TPCC) if a proposed development goes beyond the height limits applicable to its location. Since the TPCC is a prerequisite for such projects, this effectively blocks developers from benefiting from the additional floors previously allowed under the 2014 Hotel Height Policy. 

The ministry explained that the hotel policy had originally been introduced “to incentivise investment in tourism accommodation at a time when such direction was required to meet rising demand from a growing tourism industry.” However, the mechanism still relied on prior approval from the MTA through the TPCC process. 

However, under new regulations announced last week, that same process will now act as a control. The MTA “would not be able to issue a TPCC if a proposal exceeds the height limitation of the location in question”, a spokesperson for the ministry said. 

The latest reforms form part of a wider package of measures targeting the tourism accommodation sector, aimed at aligning planning outcomes with a revised national tourism strategy. 

While the legal notice has yet to be published in full, government has indicated that the changes will introduce tighter controls on new hotel developments and extensions, reinforcing adherence to local plan parameters and limiting the scope for exceptions. 

The Tourism Ministry spokesperson said that “tourism stakeholders are now in agreement that the country has secured sufficient bed stock to meet current and immediate future demand,” as Malta shifts its focus towards “long-term resilience, sustainability, and higher-value visitor experiences.” 

The 2014 height policy 

The 2014 policy, introduced by the Planning Authority, had allowed hotels rated three-star or higher to apply for permits to build up to two additional floors beyond local plan limitations, with larger sites in some cases exceeding this threshold. 

While it excluded sensitive areas such as Outside Development Zones, Urban Conservation Areas and scheduled sites, the policy remained controversial due to its impact on skylines and urban character.  It also contributed to a number of pencil developments jutting out of the surrounding skyline flanked by blank party walls.  

The Hotel Height Policy itself falls under the jurisdiction of the Planning Authority, and any formal reform would require a lengthier process involving public consultation. MaltaToday is informed that the Planning Authority has not yet been asked to initiate changes to the policy to reflect the new government direction.  

By instead directing the MTA to withhold the necessary compliance certificates for projects exceeding height limits, government is effectively fast-tracking implementation without waiting for the formal revision of planning policy. 

Over the past months, MaltaToday has noticed a surge in applications for hotel developments seeking extra floors by utilising the planning policy mechanism.