The local tourism sector has undergone a significant reform following the introduction of the Malta Tourism Accommodation Regulations (L.N. 92 of 2026). This reform marks a decisive shift toward a more structured and quality-driven regulatory environment while introducing more rigorous conditions governing both market entry and ongoing operations signalling the sectors desire to depart from volume driven growth and to more toward a more sustainable, higher-value tourism model.
The new regime introduces a harmonised licensing framework applicable to all categories of tourist accommodation. Operators are now required to obtain the relevant authorisations from the Malta Tourism Authority (MTA), including, where applicable, a Tourism Policy Compliance Certificate as a prerequisite for development and licensing.
Short-let accommodation is now firmly brought within the regulatory perimeter through a comprehensive licensing regime. The operation of short-lets without prior authorisation from the MTA is expressly prohibited. A licence will only be granted where applicants satisfy a detailed set of criteria, including the submission of accurate operator information, proof of valid development permission, and certification that the premises conform to approved planning standards. Applicants must also provide valid insurance cover which should also extend to common parts where relevant, and demonstrate compliance with the applicable classification criteria. In addition, each licensed property must designate a natural person available on a 24-hour basis to address complaints, with up-to-date contact details maintained at all times. Licences are issued exclusively to the “proprietor in title,” a term broadly defined to include owners, authorised agents, lessees, and other lawful holders of rights over the property.
The Regulations further introduce substantive operational and use restrictions aimed at safeguarding residential environments and ensuring minimum quality standards. Where a short-let property forms part of a condominium, the licensee is required to notify the building administrator. Notably, however, this obligation arises only after the licence has been issued, and the framework does not provide co-owners or residents with a formal mechanism to object to the granting of a licence within the building.
Additional requirements require properties to be finished to a high standard, and occupancy is limited to two persons per bedroom, subject to an overall cap of ten persons per unit, unless the property benefits from independent access from a public road. The use of basement areas as bedrooms is expressly prohibited. Moreover, all licence applications must be accompanied by a waste management plan, an issue that has long posed challenges in high-density tourist areas, particularly during peak summer periods when improper waste disposal becomes more acute.
Short-let use is also more clearly delineated from long-term residential letting, with bookings capped at a maximum of ninety consecutive days. The Authority is further empowered to introduce locality-specific criteria and to apply additional conditions derived from local council by-laws. Operating without a valid licence results in a three-year disqualification from reapplying, a sanction which also attaches to the property itself. Licences may also be suspended or revoked in cases of non-compliance, particularly where breaches relating to noise, waste, or public health are confirmed by final enforcement action or court decisions.
Beyond the short-let sector, the Regulations introduce notable restrictions on new tourism developments. These include limitations on hotel size, effectively curtailing projects exceeding 200 rooms, and the exclusion of lower-category establishments below a three-star rating. Additional constraints apply to guesthouses, hostels, and large-scale tourism models such as all-inclusive resorts and tourist villages. Collectively, these measures underscore a clear policy direction favouring quality over quantity, with the aim of repositioning Malta’s tourism offering toward more premium market segments.
The Regulations are expected to come into force following a transitional period, during which existing operators will be required to regularise their position and align with the new framework. Stakeholders in the hospitality and real estate sectors are therefore advised to undertake a timely review of their compliance status, as the reforms introduce more demanding regulatory obligations and are likely to have a material impact on both ongoing operations and future investment strategies.
Our firm regularly advises clients across the hospitality, tourism, and real estate sectors, and is well placed to assist in assessing the implications of these regulatory changes and ensuring full compliance with the new regime.
By: Danica Decesare
