As permanent residents decline and short-term accommodation rises in Floriana, questions are emerging about what this shift means for businesses operating in the locality, from hospitality and retail to long-term investment for developers and urban planning.
Speaking to WhosWho.mt, Floriana Vice Mayor James Aaron Ellul and Mayor Nigel Holland outlined growing concerns about declining permanent residency, rising short-let accommodation, and changing housing dynamics that they say are reshaping the identity of the locality.
A locality with shrinking residential numbers
James Aaron Ellul / Facebook
There are 106 Malta Tourism Authority (MTA) licences for holiday furnished premises in Floriana, with a total capacity of 262 people. In addition, the locality includes two guest houses, 23 boutique hotels and Tritoni Guest House, with a combined capacity of 66 beds. Two large hotels, the Grand Hotel Excelsior and The Phoenicia Malta, are also technically located within Floriana, together accounting for approximately 1,130 bed spaces.
While tourism contributes to economic activity, local leaders argue that the balance between temporary and permanent residents is increasingly uneven.
“The problem has been a long time coming,” Mr Ellul says. “The people of Floriana are feeling the loss of community. They are feeling the loss of life, and something needs to happen soon.”
Floriana’s population currently stands at roughly 2,000 residents, but the council representatives say numbers have been steadily declining.
Short lets: economic benefit, social cost?
Mr Ellul acknowledges that short-term rentals have brought certain benefits, including property restoration and reduced abandonment in some areas.
“These short lets are helping the local economy and have supported restoration projects,” he says. “They have also reduced some issues like abandoned properties and even pigeon problems.”
However, he adds that the growing prevalence of temporary stays is affecting the social fabric of the locality.
“People are coming to live in Floriana for around two weeks. They aren’t living in the locality long term, and the identity is not being transferred,” he says.
He points to cultural indicators as evidence of change, noting that fewer balconies are decorated during local feasts compared to previous decades: a symbol, he said, of declining local participation.
“We can’t let Floriana become just a postcard,” he adds. “It’s very beautiful, with many gardens, but it’s becoming less habitable because properties are either not affordable or not adequate for modern living.”
Housing design and affordability challenges
Both local leaders highlight structural housing issues that complicate efforts to attract younger residents.
Many properties in Floriana consist of older layouts with multiple floors and narrow staircases, making them less practical for modern family living or ageing residents.
“People today are not only looking for a house: they are looking for practical spaces, often single-storey apartments,” Mr Ellul says, noting that some properties offer several rooms stacked vertically, which may be less attractive to buyers.
Accessibility is another concern, particularly in peripheral streets where installing lifts or stair lifts is often difficult due to the building’s constraints.
Mr Ellul suggests that government and private developers could collaborate on schemes that preserve historic façades while rebuilding interiors to modern standards, an approach he believes could help revitalise residential life in the area.
Calls for policy balance
While tourism infrastructure remains prominent, both leaders stressed that large hotels themselves are not viewed as problematic.
“The large hotels are part of our economy and our locality,” Mr Ellul says. “They are not in residential areas and they serve an important function.”
Instead, he argued that the issue lies in the rapid growth of short-let accommodation with limited regulation and insufficient safeguards for residential balance.
“I don’t blame those applying for permits,” he says. “But the local plan was not safeguarded enough.”
Among proposals discussed are stronger incentives for developers to build residential units, and additional support for first-time buyers purchasing in the port region.
“We should help developers see the potential of Floriana as a residential area,” he adds.
A wider trend
Mayor Nigel Holland says the current situation has developed gradually over decades, linking it to broader demographic shifts across Malta’s harbour areas.
“This didn’t happen overnight,” he says. “After the Second World War, populations in the port regions began decreasing. Some people left and never returned.”
He also points to rising housing costs and a shrinking rental market as factors discouraging younger residents from settling in Floriana.
“Renting is not feasible for many young couples because prices are so high,” he says.
While significant embellishment and restoration projects are ongoing, Mr Holland said population renewal should remain the priority.
Mr Ellul says the issue extends beyond Floriana and reflects a wider imbalance in Malta’s urban development.
“In Malta we have a population crisis in the sense that some localities are overcrowded while others are emptying,” he says. “You can have localities expecting tens of thousands of residents, while Floriana could fall to 1,500 people in a few years.”
The Floriana Local Council plans to hold a national conference at the end of April to discuss the theme, aiming to explore policy solutions that balance economic activity with community sustainability.
Ultimately, the discussion raises a wider strategic question: if historic localities lose the everyday life that gives them authenticity, will they continue to hold the same long-term value for visitors, investors and businesses?
