MTA in financial meltdown

The Malta Tourism Authority’s financial position is causing significant concern within the Finance Ministry, according to ministry sources, as its annual financial result is projected to deteriorate by €31.7 million over two years — from a €7.4 million surplus in 2024 to a €24.3 million deficit in 2026.

Finance Ministry sources told The Shift that new projects had been halted on the orders of Minister Clyde Caruana because funds were unavailable. They also said planned events were facing significant financial difficulties and that the authority had stopped investing in marketing.

According to the sources, the projected 2026 deficit had initially stood at around €40 million before an additional government subvention was agreed to reduce it to approximately €24 million.

The published figures document a sharp deterioration.

The MTA’s audited accounts recorded a €7.4 million surplus in 2024. Its latest financial estimates report a €6.6 million deficit for 2025 and forecast a €24.3 million deficit for 2026.

The annual shortfall is therefore projected to widen by €17.6 million in 2026, reaching more than three times the previous year’s deficit.

The deterioration comes despite increased taxpayer funding, as the government continues to subsidise airlines, predominantly low-cost carriers, through the authority.

The gross government contribution stood at €152.5 million in 2024, compared with €180.7 million budgeted for 2026 – an increase of €28.2 million.

For 2026, the authority estimates total expenditure of €202.8 million against income of €178.6 million, after deducting funding allocated to capital expenditure.

Advertising, promotion and marketing remain its largest spending category, rising from €157.6 million in 2025 to a budgeted €169.3 million in 2026. According to information obtained by The Shift, most of this spending consists of subsidies to airlines. The published estimates do not provide a breakdown of those payments.

The cash forecast also anticipates a substantial reduction in funds, with the balance projected to fall from €25.1 million at the start of 2026 to €4.2 million by December.

Questions sent by The Shift to the MTA and Tourism Minister Jo Etienne Abela about the authority’s financial position, the deficits for 2025 and 2026, and claims that funding for new projects had run out remained unanswered at the time of writing.