“We are in favour of competition,” said Malta Hotels and Restaurants Association (MHRA) President Tony Zahra in comments made to WhosWho.mt.

The Malta Tourism Authority’s (MTA) recent proposal to require neighbour approval for short-let accommodation licences has stirred a lively debate.

Some suggest that the move may unfairly favour the hotel industry by reducing competition. However, Mr Zahra was quick to dispel this notion.

“It’s very simple. Whoever is making that question is not aware of what hotels stand for, and we are in favour of competition,” Mr Zahra asserted, emphasising the MHRA’s stance on the need for regulation, not restriction.

“What we are not in favour of are unlicensed accommodation,” he added, addressing concerns about the impact of thousands of unregulated rentals across Malta.

With an estimated 4,000 unlicensed apartments operating in the short-let market, Mr Zahra stressed the importance of proper licensing, saying, “get those licensed!”

The proposed regulations would require apartment owners who wish to list their properties or sublet a spare room on short-let platforms like Airbnb to secure approval from their condominium neighbours.

This approval would be necessary for obtaining the MTA licence required to operate legally.

To protect landlords’ rights, the policy includes a provision allowing them to appeal a condominium association’s decision, helping to ensure the rule is not misused or unfairly enforced.

MTA CEO Carlo Micallef said that the measure aims to address mounting complaints from residents who face issues such as noise, litter, and high tenant turnover linked to short-term rentals within apartment blocks.

The regulation, Mr Micallef added, is intended to balance community concerns with the growing demands of Malta’s tourism industry.

Notably, properties with direct street access - such as terraced houses, villas, and maisonettes - are exempt from this regulation, a distinction Mr Micallef described as crucial for a fair application of the policy.

While some contend that these new requirements could stifle competition within the short-let market, the MTA maintains that the goal is to foster a balance between the needs of local communities and the demands of a robust tourism sector