Tourists to pay more for fast ferry to Gozo

A comprehensive guide to all measures related to Gozo in Budget 2027

More outpatient clinics, expanded hospital facilities, new electricity cables are among the measures promised for Gozo in the next year’s budget. But with €141.27 million in government expenditure allocated to the island, what will actually change for Gozitans over the next year?

Finance Minister Clyde Caruana announced Budget 2027 on Monday evening, outlining plans that also include higher ferry fares for non-residents travelling between Malta and Gozo.

Here’s the breakdown

The allocation is 15.7% higher than the €122.08 million allocated to Gozo in 2026. Recurrent expenditure is expected to rise by 13.4% to €107.18 million, while capital expenditure will increase by 23.8%, from €27.5 million to €34.09 million.

Reacting to the budget, Gozo Minister Clint Camilleri described the allocation as the largest ever for Gozo. The figures cover government expenditure on the island, but do not in themselves represent a separate fund available for new projects.

Gozo General Hospital to expand services

The government will continue implementing the master plan for Gozo General Hospital, with plans to add nine outpatient clinics, open a room for minor procedures, expand operating theatres and establish a dedicated women’s health area.

The government says expanding medical services in Gozo will reduce the need for Gozitan patients to travel to Malta for treatment and strengthen the hospital’s role alongside Mater Dei Hospital

Furthermore, on Wednesday during a press conference Health Minister Ian Borg said the General Hospital regeneration plan must be drawn up this year.

He also highlighted the completion of the Gozo helipad, which he said has reduced patient transport times by 10 minutes.

Two new electricity cables planned

Enemalta has launched the process to lay two new 33kV submarine electricity cables between Malta and Gozo, aimed at increasing the capacity, resilience and security of the island’s electricity supply.

Technical studies are also under way for a possible new 132kV interconnection between the two islands.

The projects form part of the government’s plans to strengthen electricity infrastructure and address supply requirements.

Tourists to pay more for Gozo Channel

The budget includes higher Gozo Channel fares for non-resident passengers and vehicles, with the government arguing that existing tourist fares are low.

The revised fares will see a non-resident adult ticket increase from €4.65 to €11, while a child’s ticket will rise from €1.15 to €7.

Vehicle fares will also increase. A vehicle with its driver will cost €22, up from €15.70. A vehicle with its driver and one adult passenger will cost €33, compared with €20.35.

A vehicle carrying its driver, one adult passenger and one child will cost €40, up from €21.50.

Tourists using the fast ferry between Malta and Gozo will pay an additional €3 per trip.

The government expects the revised tourist tariffs to generate around €13 million in additional revenue, which it says will help support infrastructure operations and reduce the burden of subsidies.

The fare changes are aimed at non-residents, rather than the subsidised fares available to eligible residents.

Tourists to pay more in eco-contributions

Tourists staying in Malta and Gozo will pay higher eco-contributions from 1 January 2027, with the nightly charge rising to €8 per person in hotels and other collective accommodation, capped at €64 per stay. Guests staying in short-let apartments will pay €10 per night, capped at €80 per stay.

The changes are expected to generate around €182 million annually from tourist accommodation. Students attending English-language teaching schools will be exempt from the charge.

A €10 contribution will also be introduced for cruise passengers who disembark to visit Malta before returning to the same ship. The charge will not apply to passengers whose cruise starts in Malta.

Visitors to Comino will also face a new €5 eco-contribution, which will be integrated into the existing booking system for access to the Blue Lagoon.

Gozitan workers among 205,000 local employees

Caurana said during his speech that the number of local Maltese and Gozitan workers in the labour market reached approximately 205,000 by the end of 2025.

The government also identified the economic and social sustainability of Malta and Gozo as a central policy objective.

Caruana said the pressures placed on infrastructure and public resources should not be borne solely by Maltese and Gozitan taxpayers, but also by those contributing to those pressures.

The speech also highlighted the impact of global challenges and energy price stability on households, workers and businesses.

Free services restricted to eligible residents

The Budget also confirms changes to eligibility for several benefits and public services from January.

Free public transport, the atypical work cheque and free childcare will be restricted to Maltese and Gozitan citizens, EU resident citizens and qualifying long-term residents.

The measures will affect eligibility for services used by both Maltese and Gozitan households.

European Capital of Culture 2031?

A notable omission is any reference to Victoria’s European Capital of Culture 2031 designation. In an interview with MaltaToday, Victoria Mayor Brian Azzopardi said that specific funding for the initiative was expected to be included in Malta’s budget, as it had already been committed to in the bid book. However, it was never mentioned during Caurana’s budget speech.

Shadow minister says Gozo has been overlooked

Gozo shadow minister Frank Anthony Tabone said the island had been overlooked in the budget. He criticised the lack of a dedicated investment plan and clear commitments on major projects such as a new hospital, better roads, additional Gozo Channel vessels, an airstrip and improvements to Mġarr Harbour.

Tabone warned that higher accommodation eco-contributions and tourist ferry fares could make holidays in Gozo more expensive, potentially discouraging Maltese families and affecting businesses that depend on domestic tourism.

GTA warns higher charges could hurt Gozo tourism

The Gozo Tourism Association (GTA) warned that higher eco-contributions for short-let accommodation and increased ferry fares could put Gozo at a disadvantage as a tourism destination. It said around 72% of Gozo’s tourist bed capacity is in apartments, farmhouses and villas, meaning the €10 nightly charge for short lets, compared with €8 for hotels, would affect most visitors staying on the island.

The association also questioned why revenue collected from Gozo’s accommodation sector is not directly reinvested in the island, and called for fairer charges and more investment in connectivity and tourism infrastructure.

Gozo Business Chamber calls for assessment of tourism costs

The Gozo Business Chamber warned that higher accommodation eco-contributions and increased Gozo Channel fares could affect the island’s competitiveness.

The Gozo Chamber called for the combined impact on holiday costs to be assessed. It questioned why short-let accommodation would face a higher nightly charge than hotels and called for tourism revenue generated in Gozo to be reinvested directly in the island.

The chamber also raised concerns about higher work permit fees for non-EU workers, given staffing shortages faced by some Gozitan businesses.

It also called for progress on major projects including new Gozo Channel vessels, Mġarr Harbour expansion and the proposed rural airfield.

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