The tourism authority overshot its budget by more than €19 million in 2021, according to figures published this week.
The latest financial estimates, published on Monday along with Budget 2023, show the Malta Tourism Authority was projected to spend €95 million last year but overshot that by a whopping €19.5 million.
Government sources said this made it one of the worst offenders when it came to financial mismanagement in the public service.
Its approved allocation for 2022 stands at €108 million and it is still unclear how much it has overshot this by as that figure will only be formally published in Budget 2024.
MTA 'singled out' in review of spending
Earlier this year, however, Times of Malta reported that the authority had been singled out during a review of government expenditure carried out ahead of this week’s budget announcement.
In June, it was reported that the tourism authority was projecting to overshoot its Budget 2022 allocation by €21 million without having secured prior approval.
At the time, government sources said that although creditors were piling up for their payments, the finance ministry had not approved the extra expense.
The financial review, which covered the entire public service, was ordered by the government as part of a cost-cutting exercise to help cover the burden of subsidising utilities.
Tourism Minister Clayton Bartolo had defended the overspend, describing it as an “investment” in a key economic sector.
Meanwhile, the latest financial estimates show that the MTA has had its financial allocation increased by €11.5 million to cover 2023.
The MTA has repeatedly faced claims of financial mismanagement. In April, Johann Buttigieg stepped down as its chief executive after three years in the role.
No reason was given but it came at a time when the authority was facing criticism for the way it spends public funds.
The authority’s former head of events – Buttigieg’s second in command – was effectively demoted in January after Times of Malta exposed how he had booked lavish hotel rooms using taxpayer funds.
Lionel Gerada, who handled most of the tourism authority’s spending, was stripped of all decision-making powers and his role was subsequently abolished.
'Splurging on events and luxuries'
Tourism industry and even government sources have said the MTA appears to have splurged on “events, luxuries and sponsorships”.
These include overseas travel and pricey accommodation and entertainment for staff as well as exorbitant sums on MTA-organised events.
Tourism Authority staff repeatedly stayed in expensive Valletta hotels at taxpayers’ expense during entertainment events organised last year.
The MTA’s events team had decided to stay at the prestigious Phoenicia Hotel for the two-week duration of the Christmas attraction, Fairyland, which the entity had organised outside City Gate, in Valletta.
The authority also spent around €350,000 on promoting Malta’s entry to the Eurovision song festival in 2021.