Issue link: https://maltatoday.uberflip.com/i/1545385
THERE was a time when Mal- ta's film industry was viewed as a welcome visitor. A production would arrive, create activity for a few months, spend money across the econo- my and then move on. The ben- efits were real, but they were often temporary. Good years were followed by quieter years, and the industry struggled to establish itself as a consistent contributor to Malta's long- term economic growth. That Malta no longer exists. Today, film production has become one of the country's most effective foreign direct in- vestment, generating sustained growth, attracting internation- al capital, driving infrastruc- ture development and creating value across multiple sectors of our economy. The numbers tell a remarka- ble story. An independent study con- ducted by the Chief Officer for Economics at the Central Bank of Malta Dr Aaron G. Grech found that Malta's film indus- try has cumulatively generated more than €1.5 billion in gross value added for the Maltese economy, with over €1.2 bil- lion of that value being creat- ed since 2018 alone. The same study concluded that annual economic value generated by the sector increased from ap- proximately €30 million before 2018 to around €173 million every year thereafter. The film industry today con- tributes almost six times more economic value to Malta than it did previously. The impact becomes even more significant when viewed against Malta's wider economic performance. Research based on National Statistics Office data found that film produc- tion contributed an average of 0.28% of Malta's gross value added between 2005 and 2017. Since 2018, that figure has ris- en to 0.83%, reaching a record 2.16% in 2023. Remarkably, al- most one-fifth of all economic growth recorded in Malta dur- ing that year was generated by film production activity. We often talk about quality over quantity, and film produc- tions are certainly a prime ex- ample of that. What makes this success particularly important is that the benefits extend far beyond the studios themselves. When an international pro- duction chooses Malta, the economic effect is felt through- out the country. Hotels accommodate hun- dreds of cast and crew mem- bers. Restaurants, cafeteri- as and catering companies experience increased demand. Transport providers, shipping companies and logistics oper- ators become critical partners. Construction firms build sets and specialised facilities. Retail businesses supply everything from equipment to daily ne- cessities. Among the crew are numerous high-net-worth in- dividuals who spend extended periods living and working in Malta. The same economic study identifies accommodation and food services, wholesale and retail trade, transportation and storage among the sectors ben- efiting most significantly from film production activity. To- gether, these sectors account for a substantial share of the industry's overall economic footprint. This is precisely why coun- tries around the world compete aggressively to attract interna- tional productions. In Malta's case, the return on investment is particularly compelling. According to the same study, tax revenues generated by film activity consistently exceeded the cost of the rebate scheme. Between 2018 and 2025, the industry generated a net fiscal benefit of €94 million for the Government after all rebate payments had already been made. This compares to €35 million generated during the entire period between 2005 and 2017. Success, however, cannot be measured solely by today's achievements. The global de- mand for content continues to grow. Streaming platforms, international studios and ma- jor broadcasters are investing billions annually into new pro- ductions. Countries that pos- sess the right infrastructure, expertise and reliability will be best positioned to benefit from this expansion. This is why Malta must con- tinue thinking ambitiously. The planned Land-Sea Super Stage represents exactly that ambition. It is designed to build on Malta's unique strengths by combining large-scale land and marine production capabilities within a single integrated facil- ity. Rather than attempting to replicate larger countries, Mal- ta is focusing on creating infra- structure that amplifies what already makes us distinctive. Our predecessors had the vi- sion to build facilities that es- tablished Malta as a respected production destination. We now have a responsibility to build the infrastructure that will ensure Malta remains com- petitive for future generations. It demonstrates that a small island nation can compete in- ternationally through vision, consistency and excellence. Most importantly, it proves that strategic investment, when combined with long-term plan- ning and effective execution, can deliver extraordinary re- turns for the entire country. Film production has become far more than an industry, it has become one of Malta's eco- nomic engines. And the most exciting chapter is still ahead of us. 7 maltatoday | SUNDAY • 14 JUNE 2026 OPINION A billion-euro success story Johann Grech Malta Film Commissioner Ridley Scott (left) returned to Malta to direct Gladiator II two decades after the original, alongside Hollywood stars Paul Mescal (Right), Pedro Pascal, Denzel Washington, and Connie Nielsen Film production has become far more than an industry, it has become one of Malta's economic engines