Malta attracting lower quality tourism – Fiscal Council

Malta’s rising tourist numbers are outpacing growth in spending, with the government’s fiscal watchdog warning that the sector’s performance needs to be assessed beyond the number of arrivals.

In its assessment of the economic forecasts underpinning Budget 2027, the Malta Fiscal Advisory Council found that tourism growth has been driven more strongly by visitor volumes than by real expenditure per tourist.

Malta welcomed 3.2 million inbound tourists in the first eight months of 2026, an increase of 17.9% over the corresponding period last year. Total tourist expenditure increased by 15.6%.

Average spending per visitor consequently fell by 2%, from €956.10 to €937.50.

The decline was largely associated with shorter holidays. Average stays dropped from 6.3 nights to 5.9 nights, meaning tourists spent less over their entire visit even as their daily spending increased.

Expenditure per tourist night rose by 4.2%, from €151.70 to €158.10.

The distinction matters when assessing what Malta gains from an expanding tourism industry. Higher arrival figures show that more people are visiting. They do not, on their own, establish how much additional value each visitor generates for the economy.

The Council’s analysis of the recovery since the pandemic found that real tourist expenditure had continued to increase, but more slowly than tourist arrivals.

It highlighted the importance of examining expenditure intensity and the value added generated by tourism alongside visitor numbers.

The findings raise more questions about how government measures the success of tourism policy, including whether public spending to attract additional visitors – tens of millions spent in subsidies by the MTA –  is delivering sufficient economic returns.

They also provide a basis for scrutinising the demands associated with rising visitor volumes, from transport and waste collection to the provision of public services.

The Council nevertheless identified tourism as an important source of support for Malta’s exports during 2026, with continued resilience helping underpin the economic outlook.