Malta’s biggest Airbnb operator: ‘Reform is needed, but not at the cost of a functioning market’

Malta’s largest Airbnb lister, 360 Group, has offered a mixed reaction to the Government’s newly tabled short-term accommodation reforms.

Speaking to MaltaCEOs.mt, 360 Group CEO and Director Matthew Zammit outlined the company’s position on the measures, which include a proposed three-month “cooling period” when switching a property from long-term rental (LTR) to short-term rental (STR), and a requirement for owners’ contact details to be displayed publicly.

The amendments aim to raise standards and bring order to a rapidly expanding market, yet operators argue the proposals risk missing the mark.

360 Group lists over 650 properties and generates around €1.7 million in Airbnb revenue according to Amphora Media. The company operates across three streams: full property management, where owners hand over operations for a fee; subletting, which guarantees owners a fixed monthly income while 360 uses the property for STRs; and a development arm focused on new builds and conversions.

Mr Zammit says the company is not opposed to reform – in fact, he welcomes it. But he insists that regulation must be structured so as not to weaken the sector or undermine investor confidence.

Cooling-off period: ‘Regularisation yes. Impeding the free market no.’

Mr Zammit’s strongest objection concerns the proposed three-month cooling period, arguing it is “equivalent to telling property owners to leave their property empty for three months and incur significant financial losses.”

“Three months out of twelve represents roughly 25 per cent of annual income – potentially more depending on the season,” he says. “There are certainly more reasonable methods to achieve the same objectives without penalising owners to this extent.”

He argues the rule should be removed entirely, or at most reduced to one month, which would still allow time for licensing, refurbishment, and raising standards without causing unnecessary disruption.

His sentiment echoes other industry operators’. Another property management CEO, Cecil McCarthy of CasaRooms, warned that landlords could easily go around this measure by opting to pay the €200 fine associated with the late registration of LTR leases.

Instead, Mr McCarthy proposes a far more stringent measure to genuinely curb speculation and create housing stability. “If a property is registered with the Housing Authority for an LTR lease, the operator should be restricted from re-entering the STR market for a minimum of twelve months.”

Contact details: agreement, with a GDPR caveat

On the requirement for owners’ or managers’ contact details to be publicly accessible, the property CEO is broadly supportive.

“Becoming a host inherently means offering a 24/7 service,” he says. “Neighbours must have the ability to contact the owner or property manager whenever necessary.”

However, he cautions that placing contact details on the exterior of the building raises GDPR concerns.

A better alternative, he suggests, is to place them at the door of the apartment itself, where guests and neighbours can easily access them without exposing personal information unnecessarily.

Zoning: ‘A threat to investment stability‘

Mr Zammit is firmly opposed to the introduction of geographic zoning for short-term rentals.

“Such a measure would undoubtedly create instability, particularly from an investment perspective,” he says. “No investor would purchase a property if an entity such as the MTA could revoke their operating permit at any time.”

He proposes a compromise: apply zoning only in non-touristic areas. This, he argues, would allow for greater control where needed, without freezing investment in established tourism zones.

The question is, are there any non-touristic zones left in Malta?

Market outlook: stabilising but still growing

Despite concerns that Malta’s STR market is nearing saturation, he says the industry remains “strong” and continues to grow.

“Currently there are approximately 7,300–7,600 active and bookable properties on Airbnb, based on real data from live market pricing,” he notes.

The market, he adds, has been gradually stabilising – “the natural cycle of any market”– but demand remains robust.

Waste management and eco tax: “Integration is essential”

Mr Zammit emphasises that waste management must be treated as a core part of short-let licensing.

“I firmly believe that a structured waste management system should be integrated directly into the licensing process,” he says. “This is essential not only to raise quality standards but also to reduce issues that may arise with neighbours.”

He also argues that responsibility cannot fall solely on private operators: Government needs to upgrade collection systems in touristic hotspots, where twice-weekly black bag pickup is “no longer sustainable.”

Waste is a huge sore spot for Malta. According to the latest figures from the National Statistics Office, Malta generated 2.9 million tonnes of trash in 2023, a whopping seven per cent increase from 2022. This could have increased significantly in two years, with Malta still benefitting from the post-pandemic explosion of travel.  

On the eco tax, he calls for clearer vision and transparency on how funds are allocated.

“A portion of these funds should go directly to local councils to strengthen village infrastructure, support increased tourism activity, and ensure higher-quality services,” he says.

The coming weeks will paint a clearer picture on whether these reforms will change.