Due to a very weak sterling and favourable tax rates, Maltese English school students plan to leave for the United Kingdom. However, observers have yet to note a trend that can predict Maltese students are favouring the United Kingdom.
In Malta, language travel services have a huge VAT of seven per cent for students and 18 per cent VAT on all other services.
Statistics show that students in 2014 increased by 3.4 per cent in Malta. About 74,992 students arrived in 2014. By the end of the year, the number has reached 77,550.
According to a government spokesman:
“At the moment this shift is not yet being felt for the simple reason that sterling started taking a downward turn only recently. However, we are sure that if this pattern persists, especially if a Brexit occurs, tour operators and agents will be even more inclined to opt to send students to the UK as they have always done every time sterling weakened.
“In the UK, no VAT is levied and this already makes it more competitive. And now, the looming 50c per person per bed night tax that the government is so adamant on introducing will only serve to increase the competitive disadvantage of Malta as an ELT destination,” the spokesman said.