In 2020 the Maltese government issued 2.23 million, €20 vouchers. Out of these 2.23 million vouchers, 1.784million vouchers were to be spent on hotels and restaurants (80%) and 0.446 million vouchers to be spent on retailer shops (20%). Assuming that by the end of 2020, redemption rate was 90% (by 14th October, 81.2% of vouchers had been used), a total of just over 2million vouchers had redeemed, resulting into a €40.14 million cash injection into the economy. Moreover, people using these vouchers would be expected to spend more. In actual fact, according to Government statistics, for every red €20 voucher (hotels and restaurants) used, there was an additional average expense of €7.16, whilst for every blue €20 voucher used, the additional average expense was €16.42[1].


Therefore, the voucher scheme had a direct impact on the hotels and restaurants of €43.7 million and a direct impact of €14.6 million on retail outlets, resulting in a total direct impact of €58 million. In order for these sectors to produce goods and services they require inputs from other sectors resulting in multiplier effects in the economy. The table below shows the increase in output that each sector had to make to cater for this increase in final demand generated by the voucher scheme. Total direct and indirect impact (type I) amounted to €108million resulting in a multiplier effect of 1.85. When induced affects (type II) are taken into account, the resulting increase in total output amounted to €145million yielding a multiplier effect of 2.49. Induced effects take into account the income earned from employment saved by the voucher scheme. These results were calculated using the Supply, Use and Input Output Table for 2015 issued by the NSO in 2021.

Capture 2

When it comes to gross value added (GVA), the voucher scheme directly and indirectly (type I) increased GVA by €37.7 million. The direct, indirect and induced impact (type II) on GVA was that of €50.6million.

Type I Type II
GVA 37,706,682 50,633,124

Further to the increase in output and the increase in GVA, the voucher scheme also had an impact on employment. This scheme helped to directly and indirectly safeguard the employment of 1,159 full time equivalents (FTE). When induced effects are taken into account, a total of 1,515 jobs in terms of FTE were saved.

Type I Type II
Employment (FTE) 1,159 1,515

To recap, the voucher scheme costed the government €40 million, but increased the total output within the economy by €145 million, generated €50.6 million in GVA and safeguarded the jobs of 1,515 full time equivalents.


[1] PRESS RELEASE BY THE MINISTRY FOR THE ECONOMY, INVESTMENT AND SMALL BUSINESSES: By 1st September, around 57.8% of vouchers were redeemed, generating a spend of €37.3 million, PR201651en, 03/09/2020