The Gozo getaway may provide a useful break for many Maltese but as the summer season gets into full swing, bona fide businessmen are concerned about unlicensed properties.
The owners of four villas in Gozo were fined almost €2,400 by the court last year after the Malta Tourism Authority (MTA) discovered they were renting out their properties without being in possession of the necessary licence.
The charges were part of the authority's drive to identify unlicensed self-catering apartments, farmhouses and villas being rented out to foreigners and Maltese.
According to the authority there are 795 licensed self-catering units in Gozo. With just over 4,000 beds this makes the sector an important mainstay of the Gozitan tourism industry.
In fact, there are more beds available in self-catering units than in hotels, particularly after a number closed down due to poor off-season business.
However, the licensed stock may only paint half of the picture according to licensed operators who spoke to The Sunday Times on condition of anonymity.
Estimates point towards as many as 3,000 beds in unlicensed properties, creating unfair competition for bona fide businessmen.
"These unlicensed properties do not pay taxes, have no public liability insurance and are not expected to adhere to health and safety standards," one operator said.
The MTA is aware of this situation, although it desists from giving an estimate of the number of unlicensed properties.
A spokesman said the authority not only acted on reports but was also proactively searching the internet for websites that advertise these properties and physically inspecting areas where they are found.
"More than 46 websites advertising over 1,000 farmhouses, villas and apartments have been identified. At the height of this exercise 200 of these properties were not registered or licensed. This number has been drastically brought down and we are currently investigating around 30," the spokesman said.
However, operators also criticised the discrepancy that exists between the licence fee paid for properties that are rented out to foreigners and those rented out to Maltese.
While the licence fee and MTA contribution for all types of units catering for the domestic market is €16, the fees for operators catering for foreign clients shoot up dramatically.
Villas and farmhouses rented out to foreigners pay a licence fee and contribution of €500 while the cost for apartments varies from €291 for a one-bedroom apartment to €352 for a four-bedroom flat.
In some instances, operators claim, properties licensed for the domestic market may also be used to house foreigners - undercutting businesses that specifically target the foreign market.
The Tourism Parliamentary Secretariat confirmed that a number of meetings with Gozitan operators had been held on the issue and the MTA was discussing with the Finance Ministry on how best to change the licensing fee structure and introduce more harmonisation and minimise discrepancies.
Gozo self-catering units
Domestic market
A total of 293 villas, farmhouses and apartments with 1,297 beds are licensed for rent to Maltese clients. These pay a flat licence fee of €1.74 and a contribution of €14.56.
Foreign market
A total of 170 villas and farmhouses with 1,127 beds are licensed for rent to foreigners. Similarly, there are 332 apartments with 1,613 beds.
The licence for villas and farmhouses is €296.99 and the contribution amounts to €203.82.
The cost of a licence for rental apartments varies depending on the number of bedrooms with the maximum fee being that of €235.85 for a four-bedroom, or more, apartment. The contribution is a flat €116.47 irrespective of the number of bedrooms.
ksansone@timesofmalta.com