English language schools claim eco-tax increase ‘undermines’ sector

The Federation of English Language Teaching Organisations Malta (FELTOM) has strongly objected to the Government’s decision to triple the eco-contribution from €0.50 to €1.50 per tourist per night, as announced in the 2026 Budget.

The federation said the measure, which it says was introduced without consultation, risks doing serious harm to the English Language Teaching (ELT) sector, the broader tourism economy, and Malta’s reputation as a quality destination for educational travel.

The tax applies to all visitors aged 18 and over, including adult language students – a growing segment within FELTOM-accredited schools.

These learners typically stay for several weeks or months, contributing significantly to the accommodation sector, local commerce, and cultural activity.

“Penalising them undermines one of Malta’s most sustainable tourism niches,” said the organisation, warning that a three-fold increase in nightly charges puts Malta’s competitivity at risk and “reducing both length of stay and overall spending.”

FELTOM’s key concerns:

• The increase was imposed without consultation with stakeholders.
  
• It disproportionately impacts 18+ long-stay students who already contribute more economically and socially than short-stay tourists.
  
• It risks reversing recent recovery and growth trends within the ELT sector.
  
• The measure ignores the sector’s sensitivity to even minor price shifts.
  
• The eco-tax revenue should be transparently reinvested in the localities where it is collected, improving sustainability and community outcomes.

FELTOM calls on the Government to:

• Explain the policy rationale and data supporting the increase.
• Demonstrate how the additional revenue will directly benefit tourism and education quality.
• Suspend implementation for accredited educational visitors pending impact assessment and stakeholder consultation.
• Establish an urgent roundtable with FELTOM, the Malta Tourism Authority, and related sectors to design a fair, evidence-based approach.

FELTOM said it supports Malta’s environmental goals, and proposed a fairer system including exemptions or reduced rates for long-stay accredited students, capped contributions for repeat visitors, and a tiered model balancing sustainability with competitiveness.