Factsheet for case MT-2020-24/938 – Updated – measures in Malta
|Country||Malta , applies nationwide|
|Time period||Temporary, 08 June 2020 – 15 September 2021|
|Type||Other initiatives or policies|
Promoting the economic, labour market and social recovery
– Support for spending, stimulus packages
|Author||Luke Anthony Fiorini (University of Malta) and Eurofound|
|Case created||07 July 2020 (updated 14 July 2021)|
During the initial phases of the COVID-19 pandemic in Malta, several forms of enterprises were ordered to close their doors, resulting in no or limited business being conducted by these organisations.
As retail shops, restaurants and licensed accommodation were allowed to re-open once COVID-19 cases dwindled, these enterprises and their respective associations complained that business remained very poor, with some organisations stating that they were losing more money by opening. In view of this, Government announced that €100 vouchers would be distributed to all individuals aged 16 and over that can be used in a licensed accommodation, restaurants, bars or business that had closed due to the pandemic.
Every resident in Malta and Gozo aged over 16 years old will receive a voucher of €100 which can be used on Malta Tourism Authority (MTA) licensed accommodation, this includes hotels and holiday homes. The voucher can also be used at restaurants, bars and retail outlets. Specifically, five €20 vouchers will be issued to every resident, €80 can be used for accommodation, restaurants or bars, while the remaining €20 can be used in any retail outlets that were closed during the COVID-19 pandemic.
Whilst it was originally announced by Government that only individuals who are registered on Malta's electoral register would receive such vouchers, it was later clarified that foreigners who had a Malta residence permit will also receive them.
Distribution of the vouchers began on the 8 July 2020 via registered mail.
440,000 individuals residing in Malta are expected to receive vouchers worth €100. In September 2020 during a press conference, the Prime Minister, Robert Abela, noted that some 60% of the vouchers generated the same expenditure as 40,000 tourists did in August 2019.
The Economy Minister announced that as per 14 October 2020, 98% of Maltese residents, 65% of EU residents, and 83% of non-EU residents had received their vouchers. 81% of all distributed vouchers had been used: 2.23 million vouchers were issued and 1.81 million vouchers were used. It was also stated that the measure cost €44 million over a three month period. A total of 5,720 outlets received vouchers.
In June 2021, it was announced that the first round of vouchers had injected €37 million into sectors hard hit by COVID-19. Furthermore, the Prime Minister announced that the first round of vouchers had resulted in people spending an extra Euro for every Euro of voucher used.
Sector specific set of companies
||Applies to all citizens|
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Direct consultation outside a formal body||Direct consultation outside a formal body|
Social partners' role in the implementation, monitoring and assessment phase:
By means of a tripartite agreement, a package of measures to save jobs and organisations was agreed on 24 March 2020. This was the third but most significant package of measures announced by the Government. Following this agreement, social partners remained in direct contact with the government highlighting their proposals of what was felt was still necessary to save the Maltese economy and jobs. In view of this, on the 8 June 2020, the government announced a 'mini budget' to help the Maltese economy to recover from the effects of the COVID-19 pandemic. Essentially, this was the fourth package of measures announced by the government. The current measure formed part of this package. It has not been announced who will administer this measure.
The fourth package of measures, of which the current measure formed part of, received public support from an array of social partners. Those positive and vocal about it were primarily business associations, including the Chamber of Commerce, the Chamber of SMEs, the Malta Employers' Association, the Malta Hotels and Restaurants Association, and the Association of Catering Establishments. The latter two associations also expressed their specific satisfaction with the introduction of the voucher scheme which is expected to improve liquidity in their sectors whilst also improving perceptions of safety. The feedback on the overall package from unions was more mixed; The Union Ħaddiema Magħqudin (UHM) Voice of the Workers argued that only 6% of €900 million mini-budget will end up benefitting workers directly. Conversely, the General Workers' Union supported the package.
In September 2020 various employer associations called for the voucher scheme to be re-issued. The Malta Employer's Association called for their re-issuing but stated that some should be exclusively for retail and catering outlets. The Chamber of SMEs also called for them to be re-issued but asked for greater focus on retail and those providing services affected by COVID-19.
During a 15 October 2020 panel discussion of employer associations, a general consensus was expressed that the vouchers helped stimulate business, particularly in Gozo. Retailers however expressed hope that any future round of vouchers would be less biased towards restaurants and accommodation, with a greater proportion of the voucher being applicable to retail outlets.
|Economic area||Sector (NACE level 2)|
|G - Wholesale And Retail Trade; Repair Of Motor Vehicles And Motorcycles||G47 Retail trade, except of motor vehicles and motorcycles|
|I - Accommodation And Food Service Activities||I55 Accommodation|
|I56 Food and beverage service activities|
This case is not occupation-specific.
Eurofound (2020), Vouchers for use in businesses affected by COVID-19, case MT-2020-24/938 (measures in Malta), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.