AX Group calls for destination hubs as part of tourism strategy shift in Budget recommendations

Creating destination hubs aimed at developing authentic visitor experiences is part of the AX Group’s proposals to shift Malta’s tourism strategy.

AX Group, a leading diversified group of companies operating in various sectors, including healthcare, hospitality, development, construction, real estate and renewable energy, was asked by this newsroom what its top three proposals for the upcoming Budget would be, to which it mentioned the development of a national employment and skills strategy, investment in infrastructure and shifting the tourism strategy to value added as the areas it believes should be given priority.

The group said that should the country adopt a strategy for each priority and implement a plan of action to tackle them, a balance would be struck between ensuring sustainable economic growth whilst ensuring improved quality of life for the residents.

Shifting the tourism strategy to value added

One priority, it said, is to shift the country’s tourism strategy to value added rather than volume.

AX Group highlighted that 2026 is expected to be another record year for tourist numbers, explaining that while this strategy significantly contributed to economic growth, it also exposed increasing pressures on infrastructure and residents’ quality of life.

“Since this is no longer sustainable our strategy should therefore focus less on increasing visitor numbers and more on increasing the economic value generated by each visitor.”

The group underlined that this will require a coordinated approach, encompassing amongst others - tourism policy, infrastructure investment, urban and environmental planning.

Here, it suggests that localities be developed around clearly designed identities and visitor experiences, creating destination hubs aimed at creating authentic visitor experiences which encourage visitors to spend more time, engage more deeply with the destination, and ultimately generate greater economic value.

As examples, Valletta, Mdina and Rabal could be cultural and heritage destinations, it said, while selected localities could be positioned around gastronomy, arts, wellness, maritime heritage, among others.

To create such hubs, it said, careful management and investment is required.

“For example, Valletta's cultural and historical significance should remain at the centre of its tourism offering. Activities that undermine its unique character, public enjoyment, or residential quality of life should be carefully re-evaluated against the long-term vision for the capital city.”

Similarly, it said, greater emphasis should be placed on cleanliness and maintenance, restoration and preservation of heritage assets, improved public spaces and streetscapes, and better destination management and visitor experiences.

AX Group highlighted that the private sector has invested significantly in new hotel developments, upgrades, and internationally recognised hospitality brands.

“However, the success of these investments ultimately depends on the quality of the overall destination experience because tourists the destination as a whole and not just hotels.” Further to the investment in infrastructure priority for which it also included a set of proposals, it said that Government should present a comprehensive programme aimed at upgrading Malta's tourism infrastructure and ultimately visitor experience.

“The tourism industry success should no longer be measured solely by the number of arrivals, but by the value created for the economy and the quality of the visitor experience.”

A national employment and skills strategy

Another of its proposed priorities is for the development and implementation of a comprehensive national employment and skills strategy that addresses both present and future workforce requirements. The group underlined three key objectives this strategy should focus on.

One objective would be to retain local talent by creating attractive career opportunities, improving productivity and enhancing the quality of employment.

Another would be to attract skilled talent, particularly from Europe and other markets, to address critical skills shortages and support continued economic growth.

The third would be to align education with the needs of industry, ensuring that students and future workers are equipped with the skills that businesses require today and more importantly tomorrow.

The group highlighted that the rapid advancement of AI and other digital technologies is fundamentally changing the nature of work.

“As a result, equal importance must be given to the continuous upskilling and reskilling of Malta's workforce. Lifelong learning should become a national priority, supported through coordinated efforts between Government, educational institutions, and industry. Support measures should be introduced to support businesses in this transition.”

Whilst various policy initiatives and strategies are currently being discussed, the country can no longer afford to focus solely on planning, it said, and stressed that the labour market is evolving at a pace that requires “immediate action, and hence the most important priority is therefore implementation.”

It suggests that the Government should establish a clear national action plan with defined deliverables, timelines, accountability structures, and measurable performance indicators, and that annual progress reporting should be introduced to ensure transparency and maintain momentum.

“Malta has reached a stage where success will not be determined by the number of strategies produced, but by the speed and effectiveness with which they are executed. The business community stands ready to contribute towards a collaborative national effort that equips Malta with the talent, skills, and adaptability required to remain competitive in the years ahead.”

Investment in infrastructure

Another priority is for a focus on infrastructure investment.

AX Group said that investment in infrastructure has not kept pace with the country’s requirements, noting that over the past decade Malta experienced significant economic growth and population expansion.

“To support continued economic growth and improve quality of life, Malta requires a comprehensive long-term National Infrastructure Investment Programme that is based on clear national priorities and supported by a robust implementation framework.”

AX identified a number of areas it believes should be given priority in this regard.

These include the modernisation of the road network to reduce congestion and improve connectivity; strengthening water and electricity distribution; investment in effective and sustainable mass transport solutions, upgrading tourism zones, public spaces, promenades, and visitor infrastructure; and improved cleanliness, maintenance, landscaping, and environmental management across urban and touristic areas.

The group said that commitment to investment alone, however, is not sufficient.

It said that the programme should be accompanied by a detailed national implementation plan which would establish clearly defined projects and priorities, target commencement and completion dates, KPIs and measurable milestones, public reporting on progress and delivery, and assigned ownership and accountability.

“Equally important is the alignment of all Government ministries and public entities. Infrastructure planning and execution should follow a holistic approach to ensure that all stakeholders work towards common national objectives and that investments are coordinated rather than fragmented.”