Eighteen hotels are expected to avail themselves of two policies to expand their operations at a projected total cost of €100 million over four years, Tourism Minister Edward Zammit Lewis said.

Replying to a Parliamentary question by Nationalist MP Ćensu Galea, the minister said that, so far, one application had been approved under the first policy in October 2013 and nine, received last September and October, under the second policy, which was more flexible than the first.

The applicants include a four-star hotel in Gozo which is still to be constructed.

Dr Zammit Lewis said the upgrades were expected to result in an increase of 0.4 per cent in employment and a 0.3 per cent increase in GDP.

Asked what that meant in figures, the minister said he was speaking on the strength of a report by two Central Bank of Malta economists with predictions of uptake of the height limit adjustment policy.

The policy was not limited to hotel height increases but also included product and amenities enhancement.