Malta’s 2050 vision unveiled: Less construction, more tourists, manufacturing

• Economy will ease to slower rate of 5% over next 10 years;
• Tourism numbers planned to increase to 4.5m;
• Construction growth to slow, focus on 'vertical expansion';
• Land reclamation considered for 'range of uses'.

Malta will slow down its construction sector and focus on financial services, high-end manufacturing and aviation over the next 25 years, the government promised, unveiling its much-vaunted Vision 2050.

The vision pledges to deliver a “healthy quality of life for all,” saying it will shift the country’s economy to focus on seven economic sectors which will grow by 140% over the next decade.

These seven sectors - shipping, aviation, financial services, high-end manufacturing, tourism, gaming and construction - will be worth €18 billion by 2035, the government said, more than double the current €7bn.

And while the economy will continue to grow, it will do so at a slower rate than the frenzied pace experienced over the past decade.

Malta’s economy grew by an average of 10% a year since 2013, but will grow at a steadier pace of 5% per year between now and 2035, the government said, aiming to a hit a target of €38bn, up from today’s €20.5bn.

Malta’s shipping and maritime sector will almost double its growth by 2035, establishing new trade routes and building a new freeport terminal on reclaimed land.

Financial services will establish themselves further as a key driver of Malta’s economy, rising to 13% of Malta’s economy (from the current 10-11%) and adding €5 billion to Malta’s coffers by 2035, the vision says, promising to focus strongly on attracting fintech companies to Malta.

High-end manufacturing, particularly in the fields of semi-conductors and pharmaceuticals will also be given a boost, with the vision promising to embrace automation to increase value.

Tourist numbers will also grow, rising from 3.6m last year to 4.5m in 2035. But tourists will be spending more money in Malta, the government believes, with expenditure per night set to double to €285.

The vision also mentions a mass transportation system, with more detailed plans for this expected to be unveiled once the vision's final document is published at the end of the year.

The government also promises to make land reclamation a priority, exploring the possibility of using reclaimed land for a range of uses, including moving industrial projects from the mainland to reclaimed land.

'Vertical expansion'

And while construction will remain key to Malta’s economic success, the government says it will “manage” the sector, aiming to slow its growth from the 10% over the past decade, to somewhere between 6% and 7% over the next 10 years.

Dubbing it “smart construction,” the vision promises to prioritise renovation while incorporating “vertical expansion” in certain unnamed areas.

The vision will now be open for public consultation until September 9, with a final document expected to be published by the end of the year.

It features 90 actionable initiatives, with the government promising that the public will be able to track the progress of each in real time.

The vision will eventually be implemented by a dedicated team under the supervision of the prime minister, who described it as “an invitation to think boldly about the future of our country”.

“We want to define the bigger picture, Robert Abela said.

“It is about building a more coherent future, where progress in one area reinforces progress in another”.

Economy Minister Silvio Schembri, who led the drafting of the vision to date, said the vision “places greater value on well-being, education, sustainability, innovation, inclusion, and quality of life”.

The PN said the vision was a "step in the right direction" but warned government it needed to deliver instead of offering "more empty promises and long-term plans that never see the light of the day".