Tag: development

  • Lawless Lets: Unlicensed Short-Term Rentals Boom And Outpace Enforcement

    Lawless Lets: Unlicensed Short-Term Rentals Boom And Outpace Enforcement

    By Daiva Repečkaitė, Julian Bonnici and Sabrina Zammit
    Photo credit: Joanna Demarco

    • Approximately 1 in 5 Airbnb listings in Malta lack an MTA licence.
    • Hotspots such as Gżira (46%), Sliema (30%), and St Paul’s Bay (28%) show even higher rates.
    • MTA enforcement is struggling to keep up with the pace of the market.
    • Between 2022 and 2023, not a single license was revoked.
    • From 2026, new EU law will require platforms like Airbnb and Booking.com to share detailed monthly data with authorities.

    Malta’s tourist boom is spilling far beyond its hotels and guesthouses. From Marsaxlokk to Mellieħa, ordinary homes are being converted into holiday rentals on Airbnb – often without a license and outside the very rules meant to regulate them.

    Our investigation shows that about one in five listings across the island of Malta are unlicensed. The picture is starker in the main tourist hubs: nearly a third of all listings in Sliema and St Paul’s Bay are unlicensed, rising to almost half in Gżira.

    Boats and apartment blocks in St.Paul’s Bay. Nearly a third of all AirBnb listings in Sliema and St Paul’s Bay are unlicensed. Photo credit: Joanna Demarco

    Still, enforcement remains lacking, with officials expected to monitor all of Malta and Gozo’s catering establishments, kiosks, travel agencies and other establishments, not including the over 9,300 listings on Airbnb alone.

    Amphora Media’s investigation, carried out with support from Journalismfund Europe and in collaboration with Centro di Giornalismo Permanente, shows that almost every fifth liveable dwelling in Valletta, every ninth in St Julian’s, and every tenth in Sliema and Gzira has been converted into a short-let rentals advertised on Airbnb.

    In Malta, the law clearly states that no one can run a holiday premises without the proper licence. When Airbnb listings include a field for licence numbers, it is tracked by Inside Airbnb. However, this field was blank across all listings in Malta.

    On its website, Airbnb says, “the absence of a registration number does not mean the Host is not compliant—they’re just not required to register.” 

    In Istanbul, which was the focus of our partner’s investigation, the licence field was active and licence numbers were visible. Airbnb did not explain why Maltese listings do not show license numbers.

    Calculating the absent licences

    Our analysis is based on a conservative estimate of the gap between listings advertised and licences issued by the Malta Tourism Authority (MTA). To get a licence, properties must comply with rules on minimum bathrooms per person, emergency exits and lighting, and even a refuse collection service.

    For holiday premises of the standard class, the annual licensing fee is €130 per year per unit if it is in Malta and €104 if in Gozo – a higher rate is charged for villas with pools and farmhouses; lower fees per unit are charged for clusters of various sizes.

    A new EU law, which will apply from next year, will require large short-let platforms to send monthly data about this market to authorities. 

    “Cities are experiencing a spike in illegal short-term holiday rentals. This is making cities across Europe harder to live in and less affordable,” MEP Kim Van Sparrentak, who led the European Parliament’s work on the new law, said when it was adopted.

    As part of the investigation, Amphora Media and partners analysed data collected from Airbnb and provided by an activist-led platform, Inside Airbnb, and publicly available government and census data to offer a closer look at a booming industry reshaping Malta’s tourism accommodation sector and fuelling growing tensions within residential communities.

    Inside Airbnb has collected data on over 9,300 active listings advertised on Airbnb in Malta. Separately, Inside Airbnb collected data on hosts who identified as businesses and provided their details to Airbnb.

    Read more about how short lets are reshaping Malta

    MTA’s list of short-term rental licenses shows nearly 80,000 bed covers across 7,552 establishments. Among them, 7,116 are holiday homes. Guesthouses and hotels can also advertise on Airbnb.

    How did we calculate this?

    Total listings – Number of Licenses – Hotel/Guesthouse listings = Total Unlicensed

    If you just subtract the number of licences from the number of Airbnb listings, the result can be misleading, because one licence can cover many rooms or apartments in the same place (like a hotel).

    To fix this, we grouped listings that were at the same address or very close together (called “clusters”) and checked whether those with more than five belonged to hotels, hostels, or guesthouses

    Our analysis indicates that in some areas of Malta, nearly half of the Airbnb listings are unlicensed. 

    From the total 9,376 active listings found on Inside Airbnb’s database, 50 listings could be traced to licensed hotels, 79 listings identified themselves as rooms in hotels or b&bs.

    This is a conservative estimate, subtracting the number of MTA-licensed holiday homes from the total number of listings, after we identified & removed all collective accommodations and any listings that could not be confirmed or otherwise identified as such (390).

    Sliema. Photo credit: Roberto Sorin
    Sliema. Photo credit: Roberto Sorin

    In Malta: 

    There are 8,044 active listings.

    With 5,649 officially licensed holiday homes, it is estimated that around 1,925 listings are likely to be unlicensed – a quarter of all listings of the island and one in every 500 livable homes.

    The Malta Hotels and Restaurants Association (MHRA) puts that figure even higher. Using data from VRBO to supplement that of Airbnb, an MHRA study conducted by Deloitte estimated that there could be as many as 10,043 short-term rental properties, around half of which are licensed.

    “Alternatively, if one were to consider NSOs data on guest nights spent in private rented accommodation during the peak July and August period, then there should be at least 8,900 – 10,000 private rented accommodation units available to support the market demand,” the report reads. 

    The data on unlicensed short-term rentals in Gozo is more complicated, hinting that many short-lets, licensed or unlicensed, are not advertised on Airbnb.

    Gozo has 1,332 listings on the platform, but there are 1,465 MTA licences for holiday homes in Gozo. A search on Booking.com for a two-person stay at “Entire homes & apartments”, “holiday homes”, “apartments” or “villas” shows a total of 1,261 properties in Gozo.

    MTA enforcement is not keeping up with the surging supply

    Limited enforcement by the Malta Tourism Authority has led to a proliferation of unlicensed holiday accommodation providers.

    According to data tabled in parliament, MTA carried out 1,771 inspections on new licensees and 2,839 routine inspections in 2023. However, this covers the licensing of catering establishments, kiosks, travel operators and other establishments.

    Blue Lagoon. Photo credit: Jaroslav-Moravcik

    Meanwhile, there were just 474 inspections based on complaints in 2023. That’s over nine a week, despite there being an estimated 62,000 tourists on Malta’s streets every single day. 

    The numbers for Gozo are even weaker, with just 32 inspections on complaints across a calendar year. The southern region is even less, at just 24.

    In 2022-2023, no licence was revoked. 

    Between January and March 2024, 250 tourist rentals were inspected. Details on whether any fines were issued or whether any licenses were revoked are yet to be provided following a freedom of information request.

    It should be noted that the Inside Airbnb datasets used for this investigation are accessible to MTA as well. In 2023, laws changed, so the MTA must share all holiday premises data with local councils on request.

    Ian Borg. Source: DOI

    Tourism minister Ian Borg promised action in April, saying on an episode of Il-Kazin that the government has “the data from the platforms; the data we don’t have, we will continue to obtain. And whoever is renting [to tourists] without being registered faces fines that reach €23,000 — meaning we are not going to be joking about this.”

    In August, Swieqi residents reached out to Booking.com and Airbnb to complain about suspicious listings and the negative impact of short-lets. Soon after, Swieqi’s Deputy Mayor wrote on Facebook that “Several listings from around six apartments have already been blocked, particularly those with just one or two registered guests, pending further investigation.”

    Booking.com told Amphora Media that it has “a solid process in place for authorities to report any concerns, taking swift action to remove properties if they are found not to be operating in compliance with local laws.”

    The Malta Tourism Authority and Airbnb did not respond to a request for comment. 

    Amphora Media also contacted 12 major short lets operators to ask how they manage licensing for their listings. None of them replied.

    This investigation was developed with the support of Journalismfund Europe.

  • Short lets In Numbers: How Tourist Rentals Reshaped Malta

    Short lets In Numbers: How Tourist Rentals Reshaped Malta

    By Daiva Repečkaitė, Julian Bonnici and Sabrina Zammit
    Photo credit: Joanna Demarco

    • Tourism has more than doubled in a decade. Now at 3.5 million a year, or an average of 62,000 extra people per day.
    • Today, there are more than 9,300 active listings on Airbnb.
    • Short-term rentals now make up a third of the tourist accommodation market.
    • The market generates an estimated €47 million over a year.
    • Sliema’s Airbnb market is the largest, worth €7.3 million, followed by St Julian’s (€5 million) and St Paul’s Bay (€3.8 million).
    • In Valletta alone, 1 in 6 homes is part of the tourism market. In tourism hotspots, like Sliema, Gżira and others, that number is now at 1 in 10.
    • Nearly 200 clusters where multiple short-lets are concentrated in a single building or street.
    • Four main arteries in Sliema, Tower Road, The Strand, Triq Robert Arrigo, and Triq Manwel Dimech, host 401 Airbnb listings.
    • Local councils report mounting complaints over waste, noise, vandalism, and safety, while revenues eclipse budgets.

    Malta now boasts more than 9,300 active listings on Airbnb alone, a figure that underscores just how deeply short-term rentals have reshaped the island’s housing landscape, with some localities carrying a disproportionate share of the burden.

    Amphora Media’s latest investigation, carried out with support from Journalismfund Europe and in collaboration with Centro di Giornalismo Permanente, analysed data collected from Airbnb and provided by an activist-led platform, Inside Airbnb, to offer a closer look at a booming industry reshaping Malta’s tourism accommodation sector and fuelling growing tensions within residential communities.

    Photo credit: Joanna Demarco

    Malta’s tourism, one of the seven priority sectors promoted by the government, has doubled in a decade. The number of visitors has soared from around 1.6 million in 2013 to 3.5 million in 2024, equivalent to an extra 62,000 people in the country every day.

    Accommodating this surge has pushed thousands to convert private residences into tourist lets. According to NSO, in 2024, the number of tourists staying in ‘other rental accommodation’, under which short-lets fall, exceeded a million.

    It now accounts for 33% of the total market, and the figure is growing. The number of tourists staying at hotels and other collective accommodation has also increased over the period, but their share has dropped by 10% over the last five years.

    The market can be highly lucrative. Inside Airbnb data reveals that Malta-based listings generate an estimated €47.3 million annually.

    Yet, most of the money fails to reach the localities and communities.

    For example, estimates based on Inside Airbnb’s data show that the Airbnb market in Sliema, one of the localities overburdened by tourism, generates an estimated revenue of over €7.3 million – dwarfing the 2024 Sliema local council’s annual budget of around €1.6 million. The 2024 budget for local councils was €48.4 million across 68 localities.

    The strain is being felt at the community level. 

    From waste to noise complaints, alleged vandalism and fears over public safety, frustrations are mounting, with residents in Swieqi even taking to the streets in protest.

    “Malta has a reputation abroad as a place where everyone does what they want – everyone smokes cannabis, everyone breaks things – that’s the reputation Malta has,” says St Julian’s mayor Guido Dalli.

    Marsaskala. Photo credit: Joanna Demarco

    “[Short lets are] the most difficult thing, not only in Marsaskala, but around Malta,” Marsaskala mayor Mario Calleja told Amphora. In 2022, his local council was receiving 16 weekly complaints about rubbish on average. 

    “And why do we have these mishaps? The owners of these apartments do not inform tourists of the proper days to dispose of waste. They just take it out on whatever day. This is the most common problem for local councils.”

    In response to parliamentary questions about Airbnbs disrespecting municipal waste collection schedules, Owen Bonnici, in charge of local government, replied with promises to distribute information stickers and increase enforcement.

    Swieqi: A residential neighbourhood transformed

    “If residents are happy, tourists will come,” says veteran hospitality expert Marie Avellino. But protests, petitions and media reporting about locals’ grievances show that for many locals, mingling with tourists is less than a happy experience.

    Even the government’s tourism 2021-2030 strategy acknowledges that the “signs of uneasiness by local residents having to cohabit with tourists accommodated in residential apartment blocks or similar” is one of the ‘areas of concern’ 

    Swieqi, once a quiet residential suburb neighbouring St Julian’s, has morphed into a hotspot for short-term rentals, a byproduct of its proximity to Paceville, Malta’s nightlife capital, which has gained notoriety online for clips of rowdy tourist behaviour. 

    Over a third of Swieqi listings mention Paceville in their description. Some listings even warn that the proximity to Paceville makes the place unsuitable for families and older people.

    Airbnb did not reply to Amphora Media’s questions about these developments.

    Our analysis shows 432 active Airbnb listings in Swieqi, accounting for approximately 6% of all livable residences in the area. That figure excludes other platforms such as Booking.com, for which we could not obtain comparable data. 

    Davcar Developments Ltd, whose brand is Holiday Letting Malta, is a major player, with 80 active listings, 62 in Swieqi. 360 Group comes next with 24 properties in Swieqi, but their estimated revenues are the largest, approaching €99,000 in Swieqi alone.

    Cross-checking the numbers with Malta Tourism Authority (MTA) records suggests that, by conservative estimates, more than 9% of Swieqi rentals are unlicensed.

    In August, weeks before a protest over the issue took place, an activist who asked to be called JC reached out to Booking.com and Airbnb to complain about suspicious listings and the negative impact of short-lets.

    In response to our questions, Booking.com said, “In the very rare instance that we are made aware of any unlawful behaviour taking place at a property listed on our site – including house parties – we investigate thoroughly, cooperate with local authorities or law enforcement, and when necessary block the customer account from our platform.”

    “We also have a solid process in place for authorities to report any concerns, taking swift action to remove properties if they are found not to be operating in compliance with local laws.”

    MTA did not reply to Amphora Media’s questions.

    Valletta: built by gentlemen, housed for short lets

    The rise of short-term rentals has reshaped neighbourhoods while directly draining the supply of homes available to residents.

    Historically, tourist accommodation in Malta concentrated along the coast, as tour operators channelled their sun-seeking clients for standard-length holidays at beachside hotels.

    Photo credit: Joanna Demarco

    However, in 2006, low-cost airlines began operating in Malta, attracting city break seekers. To keep up with the demand, short-term rentals have soared, now comprising a third of the market.

    In Valletta, Malta’s state and cultural capital, nearly 570 properties are listed on Airbnb, meaning around one in six liveable homes in the city is now part of the tourism market.

    According to official statistics, Valletta is in second place in terms of tourism intensity, with its effective population in 2023 nearly doubling.

    This is mainly driven by tourists. Census data shows that as of 2023, Valletta has just over 5,000 residents, smaller than what it was in 2013. A fifth of them are over 70 years of age.

    The five largest operators have 130 listings among them.

    VREM Ltd has the largest portfolio in Valletta, with an estimated annual revenue of around €108,000 from the city. Valletta Vintage emerged as the highest earner, estimated to generate over €324,000 per year with just 10 listings.

    The combined revenue of the top 10 earners from Airbnb exceeds the 2024 allocation to the Valletta local council from the central government.

    “The private sector is proliferating in residential zones, which is clashing with the community,” says Valletta resident Billy McBee, who founded Residenti Beltin and unsuccessfully ran for the last local elections with this movement.

    “I remember a time when we used to have good quality tourists. I mean, very respectful ones, they used to leave tips, they used to go for retail, but the quality kind, you know, they never gave any problems to anyone. Nowadays, you get horrible quality tourists.”

    “Waste management is quite an issue. If the private sector truly honours the private collection, then there wouldn’t be any problem. But during summer, you’ve got pests, cockroaches, rats, smells, and liquids. These are really, literally getting out of hand,” he says.

    In 2024, 44 waste contraventions were issued in Valletta, and three resulted in court cases. Valletta’s budget for waste disposal and refuse collection was €120,000 in 2024.

    We asked 12 major operators about their approach to licensing, neighbourhood disturbance policy, and waste management. None of them replied.

    “You have nightlife, without ensuring enforcement,” McBee continued. “They [policymakers] keep adding so many things to the pot, which is now boiling. People are getting fed up. Valletta is not managing its infrastructure, like energy, electrical waste management, drainage system, and traffic.”

    MTA did not reply to questions about licensing so many short lets in Valletta.

    Sliema, St Julian’s, Gżira and St Paul’s Bay: Localities overwhelmed

    Swieqi and Valletta, however, are far from the worst affected. Sliema tops the list with 1,268 Airbnb properties, followed by St Paul’s Bay with 1,007 and St Julian’s with 947. The next highest concentrations are in Gżira (684) and Valletta (569).

    In Gżira, Sliema and St Julian’s, roughly one in ten liveable homes is now listed on Airbnb.

    Gżira. Photo credit: Joanna Demarco

    Estimates from Inside Airbnb data show that Sliema’s Airbnb market is the largest, worth €7.3 million. Airbnb listings are estimated to generate around €5 million in St Julian’s and €3.8 million in St Paul’s Bay.

    The numbers also reveal heavy clustering. In nearly 200 cases, multiple listings are concentrated within the same location, suggesting that operators may run residential buildings as de facto hotels, but with fewer regulations or oversight than traditional accommodation providers must follow.

    St Julian’s, Sliema and St Paul’s Bay top that list with 69, 68, and 68 listings in such clusters, respectively.

    The concentration of short-term rentals is starkest at street level. In Sliema alone, four main arteries, Tower Road, The Strand, Triq Robert Arrigo and Triq Manwel Dimech, account for 401 listings between them.

    Photo credit: Pablo L. Mendoza

    Tower Road tops the national list with 145 Airbnbs, followed by The Strand with 114. Similar patterns emerge elsewhere: Triq d’Argens in Gżira hosts 70, while St Julian’s has three streets, Ġorġ Borġ Olivier, St George and Triq Spinola, each exceeding 50 listings.

    Gżira Mayor Neville Chetcuti warns that, similar to Valletta, there is a larger transformation of his locality set in action.

    “It’s an ageing population in Gżira. There aren’t many young people, obviously, because every place is being demolished and rebuilt into hotels or flats or guesthouses. So they move out of here, and the number keeps going down,” he told Amphora Media.

    Credit: Joanna Demarco

    A Battle on Two Fronts: Poor Enforcement In Communities Facing Overtourism And Overpopulation

    Many localities facing the burden of over-tourism are facing challenges from a ballooning population, despite significant gaps in enforcement.

    St Julian’s and Swieqi fall under the same police district, yet between 2013 and 2025, the number of officers assigned there fell by four despite the locality being under “very high risk” of crime. This decline comes despite a sharp rise in demand: police reports in the district increased by 2,670, from 5,937 in 2020 to 8,607 in 2024.

    Sliema. Photo credit: Roberto Sorin
    Sliema. Photo credit: Roberto Sorin

    Meanwhile, across Malta, the number of noise complaint reports has increased over the years, climbing from 341 in 2021 to 473 in 2024. 

    Nowhere is the strain felt more than in Paceville. Despite being Malta’s nightlife hub, notorious on social media for clips of drunken brawls, vandalism and public urination, it has no police station of its own.

    Instead, the St Julian’s station and Swieqi officers serve as first points of contact for those requiring police intervention in the area.

    The government has refused to disclose exactly how many officers are deployed in Paceville. Replying to a parliamentary question in May, Home Affairs Minister Byron Camilleri said only that numbers “vary according to the need and particular circumstances”, noting that patrols there include district and community police as well as the Rapid Intervention Unit.

    He also promised that a CCTV network for Paceville would finally be operational by next summer.

    Valletta, which has become its own entertainment hub in the years before and following V18, faces similar shortages. Police numbers in its district fell by 32 between 2013 and 2025, even as incident reports to the police rose by 797 between 2020 and 2024.

    Sliema, Gżira and Msida, grouped together in Police District 7, are also under strain. The district, which combines dense residential areas with heavy tourist inflows, has 67 officers in total. 

    With a total population of 49,000, that means there’s one officer for every 731 residents. According to Euronews, the EU had an average of 341 police officers per 100,000 people, or one officer every 293 residents.

    Photo credit: Joanna Demarco

    In response to parliamentary questions about Airbnbs disrespecting municipal waste collection schedules, Owen Bonnici, in charge of local government, replied with promises to increase enforcement for those disposing of waste on the wrong day.

    “I’m not saying Maltese don’t litter, because they do as well, but the majority for sure are tourists. Especially those in short lets, they’re the ones who cause the most problems,” Gżira mayor Neville Chetcuti told Amphora Media.

    Tourism researcher Avellino cautions against blaming tourists for the waste problem when the door-to-door collection system confuses them. 

    “Imagine that as a tourist, I don’t know what to do with the garbage bag. I walk along the streets and see garbage bags outside. ‘Ah, that’s what people do there! Okay, I will do the same.’ And they think they’re doing a good thing,” she said.

    Tourism’s growth “places stress on key resources”, Deloitte acknowledged in a carrying capacity study, published in 2022. “Already at 2019 tourism levels, tourists’ and residents’ satisfaction were impacted by excess volume,” the study’s authors noted.

    “Key issues impacting both residents and tourists (to varying degrees) include traffic, littering, waste management, poor urban environment (overcrowding, overdevelopment and uglification) and the lack of authenticity of experience,” Deloitte noted. In response to the negative effects, there are increasing calls to calculate touristic locations’ carrying capacity again. 

    Avellino warns that this may not be a silver bullet.

    “Carrying capacity changes. It’s not like you’ve got an apartment with three bedrooms, therefore the carrying capacity of that apartment is six persons.”

    She says that coming up with an objective figure of how much tourism the islands can sustain is very difficult, and even if it could be done, it may upset some:

    “Governments and politicians traditionally went by volume. So if the carrying capacity exercise had to be done – and it’s very complex to do it – and all of a sudden the carrying capacity, for example, turns out to be two million tourists – it hurts them.”

    This investigation was developed with the support of Journalismfund Europe.

  • FATTI: Are Manoel Island delays beyond MIDI’s control?

    FATTI: Are Manoel Island delays beyond MIDI’s control?

    The concession granted to MIDI plc to develop Manoel Island is currently under the spotlight after activists collected over 29,000 signatures calling on the government to reclaim the island for the public.

    Activists argue that MIDI, the developer, is bound by contractual obligations to ‘substantially’ complete the project by 2023, which it has failed to fulfil. MIDI has pushed back, insisting that the project is taking so long due to ‘unforeseen’ architectural finds on site, appeal processes, and “slow motion” planning.

    Malta’s Prime Minister Robert Abela says the government’s hands are tied, and the developer would be eligible for hefty compensation if the concession was cancelled.

    Opposition leader Bernard Grech believes the government must honour its obligations – but the interview did not cover developers’ obligations”. In recent days, several Nationalist Party MPs have come out in favour of scrapping the deal. Even the Labour Party’s president admitted to having signed the petition.

    So did MIDI do everything it could to fulfil its contractual obligations?

    In 2024, the Times of Malta fact-checked claims about whether the concession contract allows the government to reclaim Manoel Island if the developer fails to substantially complete the works.

    In response, MIDI wrote that “The delays encountered are clearly documented and include the delays associated with the archaeological finds which necessitated the complete redesign of the masterplan, delays associated the approval of development permits and most recently the delay associated with the requirement to prepare a Heritage Impact Assessment, which is still ongoing.”

    Manoel Island Malta

    Speaking to MaltaToday, MIDI CEO Mark Portelli admitted that the 2023 deadline stipulated in the concession contract was breached. Still, he argued that the deed includes automatic provisions for extending that deadline, and those provisions cover building permits, archaeological finds, “any delays beyond the control of MIDI”.

    He also specified that negotiations with the government are ongoing regarding the deadline extension based on the archaeological findings.

    Neither MIDI nor the government replied to our questions about the content and timeline of these negotiations.

    Portelli considers that the company lost 10 years due to archaeological excavations on the two sites included in the concession. He expects 10 years to be added to the completion deadline.

    “The Group has encountered several unforeseen delays related to the issuance of development permits and archaeological finds at both Manoel Island and Tigné Point. These issues, which were not foreseen at the time the emphyteutical deed was granted in 2000, entitles the Group to an extension of the completion date for the development works as per the provisions of the Deed,” MIDI’s chairman wrote in the company’s annual report.

    Signed in 2000, the concession agreement contains clauses that establish a 2023 deadline to ‘substantially’ complete the development, and fines in the event this is not done. 

    Fines also apply if the developer fails to complete the restoration of heritage buildings, such as the Lazzaretto, by specified deadlines and commence works to prevent further deterioration of the heritage sites within six months, with completion expected within two years. The Lazzaretto restoration is still a work in progress: MIDI’s website still refers to it in the future tense.

    The contract also requires the developer to apply for all necessary permits and authorisations within 12 months. Data on the Planning Authority’s website shows that the first application on Manoel Island since the concession agreement was for the restoration of Fort Manoel in 2001.

    Manoel Island Malta

    Failures to observe obligations are subject to fines. Meanwhile, if completion delays persist for three years, the government can rescind the concession.

    There is a clause stating that “neither party shall be liable for delay in performing or failure to perform obligations if the delay or failure results from any event or circumstance outside its control.”

    However, it points to a schedule that lists such events and circumstances specifically, and the list includes wars, floods, riots, and trade disputes, but not permitting processes, legal action or red tape.

    MIDI’s argument has been that the deadlines do not apply since the company qualifies for an extension. “The clock is on hold,” Portelli said in 2025. In an earlier interview, he said archaeological digs began in 2019 and will last nearly five years.

    A letter from Mamo TCV, a law firm representing MIDI, submitted to the Planning Authority states that “even a (hypothetical) breach of the condition [completion deadline] […] would not lead to ipso jure [by law] termination, but one which is at the discretion of the grantor [government]”.

    It can be argued that archaeological finds are not as unforeseen as MIDI claims them to be. Attachments to the concession agreement include a report which mentions “many cemeteries on the island”.

    Manoel Island Malta

    Schedules attached to the contract allow the developer to address the discovery of archaeological remains by choosing to either rescind the concession over the affected areas, integrate the remains into the development if feasible, or—if the rest of the site becomes unsuitable—relinquish the entire concession. In such cases, the developer is entitled to a proportional refund and compensation for unusable improvements. A report by the Planning Authority shows that MIDI chose to integrate the cemeteries and convert them into a garden.

    The fact that Manoel Island contains cemeteries has long been known. A 1987 publication by Paul Cassar stated that “There were six cemeteries, at different periods of time, associated with the lazzaretto”.

    Planning Authority documents associated with MIDI’s 2017 development application clearly show that Superintendence for Cultural Heritage already flagged the likelihood of archaeological finds, as well as impact on Valletta’s UNESCO status.

    Article 13 of the concession contract says that “the time limits” can be extended by any “such period” or “periods starting three months” from the date a required application is submitted, until the date that application is granted. This provision applies on condition that the developer duly filed all required applications and provided all the information required for them.

    Manoel Island Malta

    Some of the procedural delays were caused by the court questioning supporting documentation. An environmental impact assessment was challenged in court due to an alleged conflict of interest; however, in 2023, the court ruled that the assessment was acceptable. Nevertheless, the Superintendence for Cultural Heritage was not satisfied with the photomontages and archaeological evaluations. 

    The Environment & Resources Authority also noted that a nature permit would be required. This shows that competent authorities repeatedly had to remind the developer of the standards required for this type of application.

    The question whether the delays are justifiable is ambiguous: if the government considered that delays up to 2023 were unjustified, it could have imposed fines, but in response to questions by the Times of Malta in 2024, MIDI did not admit to paying any fines and the government’s spokesperson did not answer the question. Neither MIDI nor the government replied to our questions directly.

    Neither the government nor MIDI clarified the stage the discussion on the delays is in. MIDI’s 2024 annual report mentions discussions with the government – something its CEO Mark Portelli also confirmed in his 2025 interview.

    The concession agreement contains several clauses that allow the government to ‘rescind’ (in full or in part) or ‘dissolve’ the concession contract. Regarding missed deadlines, there is currently no clarity from the government on its interpretation of whether project implementation delays are justified. Had the government imposed fines in 2023, it would be a clear signal. From MIDI’s responses to the media and the lack of mention of penalties in its annual report, it appears that no fines were imposed.

    Since 2017, it was flagged to MIDI that cemeteries on site will require archaeological examinations, as cemeteries on the site have been mentioned in multiple sources. The impact of views and vistas of Valletta has also been flagged in late December in the planning application process. MIDI had the option to exclude sensitive areas from the concession, but did not use it.

    As pointed out by MIDI’s lawyers, the interpretation of how the deadlines should be honoured is up to the government. From the limited communication on the issue from the government, it appears that, as a contracting side, it has accepted the delays and did not challenge or fine MIDI.
    Pending the government’s communication on its interpretation of the acceptability of the delays, the matter remains ambiguous.

    This project is supported by the European Media and Information Fund. The sole responsibility for any content supported by the European Media and Information Fund lies with the authors and it may not necessarily reflect the positions of the EMIF and the Fund Partners, the Calouste Gulbenkian Foundation and the European University Institute.

  • Fort Chambray: A Bad Deal For Malta

    Fort Chambray: A Bad Deal For Malta

    By Michaela Pia Camilleri obo The Daphne Caruana Galizia Foundation

    “The giving away of Fort Chambray and the surrounding land for the ridiculous amount of Lm10,000 a year… was and still is a scandal for many Maltese and Gozitan people.” This is how former Prime Minister Joseph Muscat described the sale of Fort Chambray before becoming Labour Party leader. Fourteen years later, he endorsed a new transfer to the Gozitan hotelier Michael Caruana.

    Now, the fort and the public are being sold down the river for a third time after parliament approved changes to the concession granted to Caruana in 2005. The changes, rushed through parliament without public consultation, allow him to sell his concession to a group of investors in negotiations over the site, after Caruana failed to honour significant parts of the public concession. 

    Last December, the Planning Authority gave the go-ahead to demolish the only British-era barracks in Gozo to make space for luxurious developments within the Fort. Several NGOs have appealed, and the hearing will be held on 25 March 2025.

     Why was Fort Chambray’s sale a bad deal for Malta?

    The site, covering an area of nearly 100,000 square metres, consists of three designated areas: a hotel area; a residential area; and “other areas”, being historical buildings found on the site, which include only British-era barracks in Gozo; a bakery built by the Order of St John; the polverista, built at the time for storing gunpowder; and the fortifications. 

    An analysis of Caruana’s 2005 contract by the Daphne Caruana Galizia Foundation shows that the PN government of the day, led by Lawrence Gonzi, granted Caruana a lenient contract.

    The agreed price for the land was low, €3.5 million for nearly 100,000 square metres of land, amounting to what would today be around €35 per square metre and an additional sum of around €2,300 per month in ground rent paid over 87 years.

    In 2005, Caruana agreed with the government that they would complete the project in three phases: 

    • Phase 1, which involved the construction of 80 apartments and villas overlooking the Mġarr Harbour area, was completed in early 2007, with the units promptly launched on the market.
    • Phase 2 would include additional villas and apartments, this time overlooking the Gozo Channel.
    • Phase 3 would develop a touristic area with a 6-star hotel.

    However, Caruana stopped investing in the site once Phase 2 was complete, leaving things as they were. 

    When contacted by the Daphne Caruana Galizia Foundation, Caruana said that on 24 January 2005, he settled all the contractual amounts due, as well as all the debts, including those racked up by previous concession owners. He also said that he has never donated to a political party.

    The Daphne Caruana Galizia Foundation’s requests to the Lands Authority and the Lands Minister Stefan Zrinzo Azzopardi to confirm that the payment of the premium of Lm1,500,000 and the annual temporary ground rent of Lm12,100 were all paid by Caruana and that no outstanding payments remained to be paid – were ignored. 

    Did Caruana breach the contract?

    Green: Phase 1, Blue: Phase 2, No colour: Phase 3. Photo: Din l-Art Helwa Ghawdex.

    The contract bound the developer to complete the development of the residential area in two phases: one not later than one year from the date of issue of a planning permit and the other not later than three years.

    While the contract does list penalties of Lm100 (€240) for each day of default in case of failure to complete the development within the time limits, it does not specify a deadline to obtain said permits, meaning that there was never any actual timeline for the project’s completion. 

    After Caruana withdrew his development permit applications, he was able to stop the clock. There were no clauses in the agreement explaining what would happen in such a case. 

    The developer also bound himself to, at his own cost, fully restore and maintain the historical buildings on the site. These buildings have been left in a state of disrepair. 

    The polverista. Photos: Din l-Art Ħelwa Għawdex.

    Regarding the hotel area, Caruana had one year to decide whether to build a hotel or another project. The hotel was never built. However, the contract was very weak, and he was only obliged not to leave the designated hotel area in a dilapidated state. 

    Where does this leave us?

    We are left with several questions. 

    Why did the government, first under the Nationalists and then under Labour, give away valuable real estate so capriciously and with such minimal obligations for the developer? 

    Why were both sides of the House of Representatives so quick to give it up once again instead of fixing past mistakes?

    We asked both the Labour Party and Nationalist Party whether any of the developers ever donated to them. We were met with no response.

    Michaela Pia Camilleri is the Research and Legal Officer for the Daphne Caruana Galiziia Foundation.