Hoteliers and restaurateurs urged the government on Saturday to stop encouraging the development of new hotel rooms and review rented accommodation and catering licensing protocols.
In a statement, the Malta Hotels and Restaurants Association (MHRA) acknowledged the tourism boom's significant boost to the island's economy over the past decade.
However, it warned that the rapid growth has led to overcrowded destinations and anti-social behaviour.
It urged the government to "take decisive action to elevate tourism standards".
"Addressing unlicensed accommodation and enforcing health, safety, and taxation standards is crucial for a level playing field and competitive tourism sector.
"The government must align inter-ministerial policies and halt incentives for additional hotel rooms development, review protocols for the management of rented accommodation and the licencing of catering establishments. While data analytics is important here, political will is the most critical," it said.
Two years ago, Deloitte’s Carrying Capacity Study had noted that an uncontrolled influx of tourists would severely strain infrastructure, damage sites, and frustrate both residents and visitors, MHRA said in the statement.
"MHRA had warned the government about these potential impacts, yet our concerns were not heeded. Last year, MHRA also put forward several suggestions to the government on tackling sustainable tourism through policy and enforcement.
"However, to date, we have received no feedback on these proposals. MHRA’s concerns remain that these issues will harm the hospitality sector and diminish tourism’s economic benefits."
MHRA president Tony Zahra urged tourism stakeholders to collaborate on managing current and future visitor flows by focusing on return on investment as individual enterprises and as a destination as a whole.
The association called on the government to prioritise investments in public infrastructure and spaces: "Issues such as dirty streets, contaminated seas, power cuts, uncontrolled traffic, and delays in infrastructure projects need urgent attention.
"A zero-tolerance policy towards pollution and antisocial behaviour is essential to protect Malta’s reputation. Additionally, balancing accessibility with the preservation of Malta’s heritage is vital."
The government, it added, must also focus on building a tourism-ready workforce and avoid "knee-jerk reactions" to the influx of third-country nationals.
"Measures should ensure the attraction of foreign workers who align with Malta’s improved productivity and economic goals and emphasise its Mediterranean identity."