Malta is changing its laws on the construction of new hotels. What will change?

The changes came into force in April 2026 and were introduced by the local government as part of stricter regulations in the ‘Tourist Accommodation Regulations 2026’. This regulation aims to shift from mass tourism to high-quality, sustainable tourism targeting more affluent and discerning travellers. Key changes include a ban on the construction of new hotels exceeding local height limits, a cap on new hotel developments at a maximum of 200 rooms, a requirement for a minimum of 3 stars, and a limit of 20 rooms for guesthouses, whilst requiring them to be located in protected areas. Let’s clarify this in detail.

Firstly: 1- and 2-star hotels will no longer be permitted in Malta. The government does not want new budget establishments that mainly cater for noisy parties for budget travellers. Secondly: new hotels will not be able to obtain special permits to exceed the permitted building height and will be subject to the same rules as other buildings. Thirdly: new hotels will not be allowed to have more than 200 rooms. Fourthly: the government will no longer issue permits for large all-inclusive resorts. And finally: new guesthouses may have a maximum of 20 rooms and must be located in urban conservation areas or in buildings listed as historic monuments or of architectural significance. Hostels in residential areas may have a maximum of 40 beds.

Source: gov.mt