National reform programme 2008-2010 Malta - European Commission

It will also look at refining and adjusting current initiatives to better reflect the changing
scenario in which these enterprises operate. These measures will then be developed into a
Small Business Act for Malta to be given the standing of a law where considered necessary.
Tourism
The tourism industry is one of the main pillars supporting the Maltese economy. The Maltese
Government will continue to invest in the tourism sector with a view to improve its tourism
product. Such investments have already contributed towards registering positive results with
an increase of 1.2% 43 and 22.8% 44 in inbound tourists and cruise liner passenger traffic
respectively, in July 2008 when compared to July 2007. Within the next three year cycle, it is
the intention of the Government to continue investing within the tourism sector. In fact,
Government has embarked on a number of tourism projects including the upgrading of
tourism zones and beaches. Furthermore a capacity building exercise will be undertaken with
a view to ameliorate the local tourism product.
Public Land Transport Reform
The Public Land Transport reform has been identified as one of Government’s priorities for
Malta in the coming years. In the past years, Malta has been driven by the liberalisation
principle. This policy has been applied successfully in various industry sectors.
Notwithstanding this policy, a number of public land transport sectors have traditionally
operated in closed markets. These sectors ‘inter alia’ include the taxi service as well as the
unscheduled transport sector. Within these sectors new entrants to the market are effectively
closed due to the current restrictions. This also inhibits the creation of new employment
opportunities in this sector.
It is the intention of Government to liberalise these sectors. The liberalisation of taxis, mini
buses and coaches operating within the unscheduled market will render these sectors more
efficient and competitive thus contributing towards increased demand and expansion. In turn,
the increased economic expansion in this area will lead to the creation of employment
opportunities. It is expected that visible results from this measure will be seen by the end of
2010.
With regard to the Public Scheduled Transport, the Government intends to embark on this
reform in order to increase the efficiency of this transport structure, which apart from offering
a better service to users and increase employment, will also promote a modal shift from
private to public transportation, thus reducing the number of vehicles in use concurrently on
private roads. Moreover with liberalisation, this sector will be fully exposed to the competition
forces, thus allowing market players to enter the market.
It is expected that due to the complications arising from this reform as well as any changes
envisaged in the public transport vehicles, this measure will extend beyond 2010.
Services Directive
The Government of Malta is fully aware of the importance of a correct and timely transposition
of the Services Directive in order to ensure the free movement of services in the internal
market and as another significant tool for the reduction of administrative burdens.
43 News Release: Departing Tourists: July 2008 (154/2008), National Statistics Office. Available online from:
http://www.nso.gov.mt/statdoc/document_file.aspx?id=2312 [Accessed on: 18 th September 2008]
44 News Release: Cruise passengers: July 2008(147/2008) National Statistics Office. Available online from:
http://www.nso.gov.mt/statdoc/document_file.aspx?id=2304 [Accessed on: 18th September 2008]
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