More than €7 million of new EU funds have been directed by the government toward the opening of 40 new boutique hotels across the island as multiple studies show the market is saturated and in no need of any new hotel accommodation.
An exercise by The Shift on the allocation of European Regional Development Fund (ERDF) funding shows the government awarded millions of euros in EU funds between 2021 and 2023 for the de 40, mostly boutique hotels.
The exercise also shows that those in power, or close to it, were the largest recipients of EU funds, which financed almost all their private investments.
Government officials with knowledge of EU fund distribution told The Shift that apart from issues of misguided priorities for the funds’ use, an EU audit would also find gross irregularities in the disbursements and payments, as well as an “unbearable stench of nepotism and possible corruption”.
Following earlier revelations by The Shift on how the families of current and former cabinet members Agriculture Minister Anton Refalo and former Deputy Prime Minister Louis Grech have received hundreds of thousands of euros to open boutique hotels in Sliema and Qala, Gozo, the list reveals further interesting awardees (see the full list here).
It results that the highest amount of funds went to a new boutique hotel in Naxxar called The Village Boutique and Spa of Village Hotel Ltd, owned by the Zammit Tabona family.
The company is owned by the Fortina Group’s Michael Zammit Tabona’s three children Ruth Trapani Galea Feriol, Sarah Zammit Tabona Westwood and Rebecca Zammit Tabona. In total, the Zammit Tabonas were allocated €490,500 for the new hotel – the highest ever allocated for such a project.
Other business people close to the government also managed to tap into the EU funding bonanza. These include Sterling Jeweller’s Romina Grech Fenech, twice over, for hotels in Iklin and Valletta.
Government officials explained that while these are EU funds, it is the Maltese government that decides on their allocation.
“There must have been a very well-connected consultancy firm that managed to secure so many funds for an industry that is clearly oversupplied. I think Brussels will be looking closer very soon,” one said.
As far back as two years ago, in 2021, the Malta Chamber of Commerce called for a moratorium on new applications for tourism accommodation in a bid to counteract oversupply.
The Chamber said that Malta did not need any more hotels as, when based on a ‘best-case scenario’ projection of 3.2 million tourist arrivals a year by 2030, this would result in 22.4 million guest nights, or 14.1 million nights, short of the projected capacity (in 2021).
The same oversupply conclusion was reached in 2022 by a study commissioned by the Malta Hotels and Restaurants Association (MHRA).
According to a carrying capacity exercise done by Deloitte, Malta will need to attract 4.7 million tourists a year by 2027, each staying under seven nights, to prevent oversupply. Malta currently attracts less than 2.5 million tourists a year.
Even Finance Minister Clyde Caruana agrees that Malta does not need any new hotels and has called for a change of direction.
Still, despite the glaring data, the government continues to encourage more growth in the area, this time by distributing EU funds and approving permits left, right and centre – with businesses eventually lowering rates and standards to cope with oversupply issues.
More 3 rd country non speaking English will be needed to run all these Boutique Hotels.
What’s wrong with that? The Maltese don’t want to work they feel it’s beneath them and without us TCN’s, your country would be shut for business and no income ….
We were doing well before the arrival of this Govt with all its
corruption that brought about this situation.
Vote better next time!
Totally wrong. Malta had and still has the ITS. This is supposed to provide PROFESSIONAL staff to the Hotels and Restaurants of Malta for good salaries serving high quality tourists. What is ITS producing ? What is happening to these students? What the hell is the minister doing , buying deckchairs for his friends in Kemmuna and paying out 5 star dinners to friends?
As an early 90s ITS graduate, I have more than an inkling of what is happening to these students.
For one thing, students regularly come into contact with unprofessional owners and hoteliers who play a major part in this country’s tourist industry. It is easy to become disillusioned and quit, opting for an entirely different sector.
In addition, the current crop of ITS bigwigs appears dead set on supposedly setting new precedents with pomp and fanfare aplenty. It makes you question the management’s professionality when it appears to be peddling an absurd fantasy in the national media such as happened this week: https://tvmnews.mt/en/news/first-its-student-to-study-and-work-in-the-u-s/.
I am one of the students who had the opportunity to train in top hotels in London and also continue my studies in the U.S., where I graduated in hospitality management whilst also working in hotels and restaurants. This happened thirty years ago – even though the current administration would naturally have us believe otherwise.
Then Portelli and Stivala came along , forcing the ITS out of its Natural Habitat , the Quality Hotels in St. Julians / Pembroke into the purgotory of an ex RAF quarters , turned Air Malta Offices / turned ITS most probably to invent the millions that headless horse of Konrad Mizzi bullshitted around. In those days , the Hotels took their summer staff requirements from the students of ITS and the hotels were staffed by Maltese. Then came Muscat who for some reason of hus decided to destroy the place. Sometimes I doubt if he has a grudge against the Maltese , because he grew up hating the place.
I have been hearing of the shift towards quality tourism since the 1980s. unfortunately no change so far and it is not ITS that can change this mentality but the greedy and unprofessional hoteliers who are still at it today. And each and every government, so-called specialists and private consultants only look out for themselves and not the industry in general. What does malta have to offer to quality tourists other than the historical sites left by the Knights of St. John and their predecessors who “conquered” Malta in the past. Do not get me started on the state of the beaches of Malta; there are no natural beaches left bar a seaside jungle of sunbeds and litter. Were one to carry out a bit of research about beaches abroad, it would be easy to discover beaches in Winnipeg, Canada and other unlikely places far superior to our blue flag ones.
On this island, you are have little choice except to smell the dirt, inhale the dust and pollution, and wear earplugs to temper the unbearable noise from construction sites and supposed entertainment spots until like 2 am. you might also think that Malta is in some kind of war due to the “festive”bombs. Try driving or taking a stroll and you have to be careful that you are not killed in the street or maimed by a pothole. This is the dystopia we expect high-quality tourists to enjoy. Do we actually dream they will come here again with all the robust competition beyond our shores? But we actually have the gall to demonize foreigners working here instead of blaming the Maltese people running the country.
And if first impressions count, go visit the airport that has been without a basic soffit ceiling, not to mention a work site for over one year. The first trip out on the road from the airport? All you tell yourself is: “What the hell was I thinking booking a trip to Malta?”
No, you are wrong.
They want to work but get paid next to nothing.
Maltese wanna work and we were never waiting for your arrival, but your cheap labour, no more than that and when the economy goes down and it will it’s bye bye for you guys, malta doesn’t need you she uses you.
Yeah, that’s all it means to you. To the general public it goes well beyond your little paying job. Useless to mention that such a small island cannot bear more overexploitation of all its resources so that its capitalist monopolies continue to over gorge. Before TCNs ever appeared Malta held its own very well and its quality of life was superior. All Malta needs to do is tax its bastard capitalist class at 80% income tax and send the present government into opposition and most of its members to prison where they more appropriately belong. You, as a TCN have nothing to do coming here remarking about our country, its policies and politics because our country is ours not yours and we are born and live here. You are just a little bird of passage.
Zammit Tabona jahasra mejtin bill guh, ghadhom bzonn naqa zejza, ghax ghadma u gilda.
Kif turu wicckom fil publiku?
SHAME ON YOU .. Captain Morgan.
Hotels that will be turned into EU funded apartments and then sold off. A veritable scammer’s paradise.
with 10% going sideways.
Subsidies by the EU are allocated to the few corrupt ministers and their families. More funds more corruption. The EU is obliged to control the mess mafimalta is in. That is why most Maltese voted to join.
But doesn’t the EU competition law states that All EU businesses in the tourist industry have the right to open a hotel in Malta?
If numbers are absurd because of Malta’s size the EU must have applied the EU’S Principal of Proportionality law in Malta’s treaty, now we are living in extreme situations, and some businesses are going experience financial failure.
It will happen. Malta has a national debt of €10,000 million and €250 million interests EVERT YEAR to pay. When it comes to the crunch , Malta will DEFAULT. Theh we swim to Sicily and get employed cutting fruit .
EU funds should be for the benefit of the locals, not the pockets of developers who are best mates with those distributing the money.
Yes. You are correct. But no one is stopping them.
Such as loius grech’s son and anton’s wife business in gozo. Corrupt lot who were against joining the EU. For sure they had in mind of making easier illicit money by not joining.
Calculate 10% KICKBACKS. Then start the logic button . It is the EU that needs to put its house in order, and stops dishing money to governments but helps manufacturing industry to create employment for Europeans . Roberta Metsola please note.
Roberta Metsola, lol.
What the EU cannot see is that they are subsidizing a classic form of money laundering – what sort of due diligence was carried out? Is it not obvious that the country is oversaturated in way of guest accomodation!!!!!! Why not also list the names of all funding recipients…..nah! That would hurt the lackeys stomachs!
Nel paese della bugia, la verità è una malattia.
That’s disgusting!! And unfair! That’s illegal as well. Clear profiteering.
“Government officials explained that while these are EU funds, it is the Maltese government that decides on their allocation.”
Oh ya Malta. Hungary thought that too and now they don’t get any funding.
You’re next!
So I presume that the 2020 application for the redevelopment of the site of the derelict Pulvich Explosives at Dingli Cliffs into a “Class 3A hotel” would have been perfectly on time for such EU funding.
In reality, the application documents showed that the project was to comprise of residences with pools.
As long as my pockets are full I don’t give a damm, a real shame how this country has become and it will only get worse.