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A detailed history about Malta's Film Commission (MFC) and the financial incentives

​Updated July 2025


The Maltese islands have been a popular destination for foreign film shoots since as early as 1925, when "Sons of the Sea" was filmed there. This trend continued in 1930 with the British film "Tell England" (also known as *The Battle of Gallipoli*), which came to Malta's shores. A significant milestone occurred in 1952 when the island was featured as itself in the war film *A Malta Story*.

However, it was not until after 1964, in the absence of an indigenous film industry, that an organized film servicing industry began to take shape in Malta, albeit in an ad hoc manner. This development was spearheaded by the founding of the Malta Film Facilities (MFF), later renamed Mediterranean Film Studios (MFS). The facility included a large water tank with a natural horizon, making Malta an attractive destination for water-based films. The concept for MFF originated from Benjamin "Jim" Hole, with support from Maltese construction manager and future studio manager Paul Avellino.

Despite its lack of sound stages, Mediterranean Film Studios became state-owned and dominated the film servicing industry for over 30 years. During this period, producers filming in Malta typically set up their own bank accounts and operations on the island, often using the water facility even if they were working entirely on location. Management of the facility was comprised of political appointees, given its government-owned status, which led to fluctuations in its operational success over the years.

In 1994, the Maltese government began to assess the film industry with the goal of privatizing the facility, aligning this objective with its national policy and the requirements for eventual European Union membership. Until that point, MFS had functioned as both a water tank provider and, in some respects, as a service provider. In the absence of a formal film commission, the facility also took on a commission-like role, effectively acting as the government's film liaison office, alongside the Department of Information (DOI).

In 1997, the island's first production manager, Malcolm Scerri-Ferrante, advocated for the urgent establishment of a film commission by submitting an official proposal to the Prime Minister. Initially, there was no positive response; however, the situation changed when Branko Lustig, the line producer for *Gladiator*, informed Tourism Minister Karmenu Vella about the necessity of a film commission. By early 1998, Lustig had met with the management of Mediterranean Film Studios to prepare for his DreamWorks project. Displeased with MFS's monopolistic control over location permits and its assumption of authority in the film industry, he opted to set up *Gladiator* independently of MFS—a rare move at the time, following a precedent set by *Merisairas*, which was filmed in 1994 by Scerri-Ferrante and a few films produced before 1964.

Minister Vella began exploring the establishment of a film commission, but progress stalled due to the government's impending election. After a new government was formed in 1998, Scerri-Ferrante resubmitted his proposal to the new Prime Minister, who forwarded it to his Parliamentary Secretary, Dr. Austin Gatt.

Dr. Gatt, who had previously served as the Secretary General of the Nationalist Party, had developed a relationship with Winston Azzopardi, a local businessman involved in catering and operating a cafeteria at the Cirkewwa ferry terminal. Azzopardi had been instrumental in helping the Nationalist Party acquire foreign programs, including the hit series *Friends*, by attending the MIPCOM market in Cannes each year. With a background in filmmaking—having taken a film course in New York—Gatt recommended Azzopardi as Malta's first film commissioner in a memo to the Prime Minister in 1999.

The Prime Minister approved this recommendation, and the new parliamentary secretary for the economy, Dr. George Hyzler (Jnr), took on the responsibility of establishing the new film commission. To announce Malta's first film commissioner, Hyzler and Azzopardi chose to hold a press conference at the world-famous water tanks owned by Mediterranean Film Studios, as MFS was then the only publicly recognized film entity in the country.

Therefore, the Ministry, through Hyzler's communication officer Oliver Mallia, asked MFS's newly appointed production manager Malcolm Scerri-Ferrante whether a press conference could be held on the studio premises to promote the importance of the film industry. To MFS's surprise, the press conference announced the establishment of the film commission and the appointment of the commissioner. Despite being taken aback by the agenda of the conference, MFS management was pleased that the government had taken steps to acknowledge the importance of the film servicing industry. They spent the next six months assisting the fledgling commission with publicity materials and supporting the commission's first participation in a Location Expo in Los Angeles. Although the intention was initially to share a booth, the relationship proved to be less than harmonious, with both entities ultimately managing their own booths on the day.

In the following years, Hyzler adopted a very hands-on approach toward the film service industry, often intervening personally when red tape became overwhelming for productions. It is fair to say that the driving forces behind the commission were Luisa Bonello—the commission's coordinator, who was hand-picked by Azzopardi—and Oliver Mallia, who had served as Hyzler's communication officer until then.
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Three years later, in 2002, to facilitate the financing structure for Warner Bros.' next movie, the country's first film commissioner, Azzopardi, offered to be a "co-producer" of "Troy," enabling the producers to benefit from the Sale & Leaseback incentive offered in the UK. This required the film to be made under the European Convention on Co-Productions if filming was to take place in Malta. Once this intention was solidified, parliamentary secretary Hyzler felt it was unethical for Malta's film commissioner to also co-produce a film while receiving a generous salary in addition to his public work. Therefore, Hyzler decided to have the final word on this contentious matter and requested the resignation of the commissioner.

Despite this star-studded feature becoming a box-office failure, "Troy" had a significant impact on the local economy. After the filming, Azzopardi transitioned to become a fully-fledged production service provider. Fifteen years later, he directed both a short and a feature film, which received positive reviews, starring his son, actor Joe Azzopardi. His feature, "The Boat," remains the first 100% Maltese film to be sold so widely abroad. The void left by Azzopardi as film commissioner was filled by Oliver Mallia, who had spent three years actively involved with the commission's coordination and had developed a strong passion for the film industry.

After nearly five years of hard work by the Malta Film Commission to introduce solid and attractive financial incentives, no legislation had been introduced since its inception in 1999, despite extensive lobbying from the two main private stakeholders at the time, Mediterranean Film Studios and The Producer's Creative Partnership. Many blame this delay on Finance Minister John Dalli, who would not concede even complimentary police assistance, despite promising to consider this in 2004 after meeting with Mark Huffam and Malcolm Scerri-Ferrante on behalf of a Universal film. However, it is worth noting that Minister Dalli is credited with granting an ad hoc incentive to Warner Bros. for "Troy," which was based on 10% of employee wages. Dalli even flew to Los Angeles with his wife to meet with studio executives.

Unfortunately, when it came time for the government to make the payments, there was a substantial delay. Warner Bros.' lawyers arrived in Malta to meet with the minister, who was unavailable due to house visits (it was election time). Only after the intervention of the new Prime Minister, Lawrence Gonzi, did Warner Bros. receive their payments. While this unfortunate incident cannot be undone, it is important to note that today's financial incentives are now written into Malta's legislation and approved by the EU. The process has been smooth, with no  failures since the incentives were officially introduced in 2005.

By 2004, the new Prime Minister, Dr. Lawrence Gonzi, had taken over responsibilities in the finance ministry, raising hopes that film incentives might finally be included in the country’s new budget. At that time, Malta's film servicing industry was beginning to lose its competitive edge abroad. The situation was so dire that PCP's Malcolm Scerri-Ferrante wrote a letter to a local newspaper shortly before the new budget announcement in parliament. In the letter, he appealed to the Prime Minister to finally introduce the long-awaited incentives, emphasizing that, given the current international film climate, Malta’s film servicing industry stood to lose even more ground.  ("considering the current international film climate, Malta’s film servicing industry stands to become even more unpredictable and volatile if serious incentives are not introduced this time around." )  Meanwhile, the film commission was also appealing to the Prime Minister through internal channels and providing a report about the multiplier effect.

In early 2005, the announcement of the country's new budget turned out to be a poorly executed attempt. Even reputable auditing firms described it as "very confusing." Their best interpretation resulted in ineffective and meager incentives, leading Scerri-Ferrante to write directly to Prime Minister Gonzi. In the letter, he explained that the new incentives would have little impact on the industry and that the country would be better off allocating its incentive funds towards a small national film fund rather than giving minimal support to foreign producers, who would not be enticed to Malta by such a small rebate. Following the film commission's recommendations, Scerri-Ferrante suggested a minimum rebate of 20%, with an additional incentive for films that showcased Malta as Malta.

Fortunately, the government listened this time and took into account the advice from its film commission. Five months later, during Spring 2005, the new Minister for the Film Industry, Dr. Austin Gatt, participated in a radio talk show hosted by Joe Grima. Scerri-Ferrante was called for live comments about the state of the industry. During the show, Minister Gatt assured him that the new incentives would be implemented "almost word for word" as per his letter to the Prime Minister.

Although this seemed too good to be true, Minister Gatt kept his promise and became the first minister to introduce solid incentives for the film industry. By the end of 2005, thanks to the hard work of the Malta Film Commission, he implemented an official cash rebate of up to 22% of local expenditure. Finally, after years of lobbying, Malta could compete effectively on the world stage. As the saying goes, better late than never.

The Malta Film Commission studied incentives from other countries and structured Malta's incentive program in a seamless and professional manner. Notably, it was designed as a cash rebate rather than a tax credit. However, one potential issue with its setup is that its administration was placed under the Malta Film Commission rather than being managed by a separate entity. This arrangement concentrated too much power in the hands of one individual (the commissioner), increasing the risk of abuse in areas where regulations might be unclear.

While Minister Gatt gained credit for introducing the island's first film financial incentives, which bolstered his reputation as one of the few politicians who gets things done, his ministry was unfortunately also responsible for the destruction of the film studio's valuable production offices and workshop building, which was government-owned and leased to the studio. Due to several rent arrears, Dr. Gatt allowed, if not instigated, the eviction of the building and endorsed its demolition to make way for his pet project, the development of a 'Smart City' with Middle-Eastern investors. To this day, the Smart City project has not come close to achieving its goal of becoming an IT hub generating hundreds of new jobs; it remains primarily a real estate venture, and the land where the production building stood remains undeveloped. Additionally, the Minister was responsible for unexpectedly initiating a court case against the studio, which led to its eventual eviction due to further land lease arrears. The lengthy court case, which spanned nearly a decade, resulted in the freezing of all investments in the studio by its owner and potential investing partners.

Commissioner Oliver Mallia was well-known for his passionate commitment to promoting film in Malta and for addressing various challenges faced by producers. However, in 2007, he abruptly resigned from his position as film commissioner to oversee a large Spanish production titled "Agora." To facilitate this transition, he established a new service company called Cinebiss in partnership with a local businessman, who would later become the chief of staff for the new government administration six years later.

At the time of Mallia's resignation, Minister Gatt believed that any delay in stepping down could lead to a scandal due to the apparent conflict of interest. With a budget of 50 million Euros, "Agora" was set to become Spain's most expensive production at that time, featuring an international cast and aimed at worldwide distribution. Unfortunately, despite being well-made, the film did not achieve commercial success on an international scale. However, it did create nearly a year’s worth of jobs for local crew members, particularly benefiting construction workers.

In 2007, Malta began to attract a significant wave of films, largely due to new financial incentives that had been introduced two years earlier. This marked a turning point for Malta, as it started to gain serious recognition on the global film map.

The departure of Oliver, the previous commissioner, created a vacancy that was filled by Luisa Bonello. Until then, Bonello had served as the commission's coordinator since its inception and was also a key part of the commission's backbone, alongside Oliver. She was known for her hard work and played a pivotal role in encouraging the first season of HBO's "Game of Thrones," which turned out to be a high-profile series. Remarkably, the film commission operated efficiently with only two full-time employees, including the commissioner, and managed all marketing efforts for the film servicing industry. This included attending several foreign markets and events while administering the same financial incentives they continue to offer today.

In February 2011, while the film commission was overseen by Finance Minister Tonio Fenech, Bonello voluntarily resigned, stating she wished to move on. Her departure was seen as a setback for the film servicing industry due to her successful tenure. She was succeeded by Peter Busuttil, then a board member of the commission, who was known for organizing various entertainment events and had a background in theater. Additionally, he was a longtime friend and confidant of the minister.

After Busuttil's appointment, leading film service providers formed an informal association to support government policy-making. However, their efforts were quickly consumed by issues relating to Busuttil’s conduct as the new film commissioner. Despite numerous testimonies and high-level meetings—including discussions with Prime Minister Lawrence Gonzi and Finance Minister Tonio Fenech—no changes were made to address the concerns. In March 2012, Minister Fenech informed Malcolm Scerri-Ferrante, representing the association, that without "proof of financial irregularity," he saw no reason to replace the commissioner. The government did make one positive change by hiring Susan Ronald, who was recognized for her organizational skills—something that was found to be lacking in the incumbent commissioner.

During Busuttil’s tenure, the commission received substantial EU funds for training, but these were primarily directed toward creative workshops for scriptwriters. As a result, there was little emphasis on training for non-creative roles, which were essential for the growth of the film servicing industry. This became a critical oversight since 2005, as the cash rebate alone was insufficient for the industry's development. Consequently, Malta could only service one large production or two small to medium-sized productions at any given time. As a result, some key technicians and production personnel had to be imported when more than two productions were occurring simultaneously. Typically, a third production in Malta required a significant number of foreign crew members, considering the population of just 500,000.
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In 2013, the majority of Maltese voters expressed their dissatisfaction with a government that had been in power for nearly 16 years. There were widespread accusations of arrogance and overconfidence. Film service providers voiced their frustrations about the film commission's conduct and the government’s indifference towards their issues. As a result, the electorate chose to support a new government. Six months later, Engelbert Grech was appointed as the new film commissioner.

At that time, Grech had established himself as a respected cameraman, editor, and producer in the local audiovisual scene. He was particularly noted for a war documentary that he produced independently and successfully sold overseas. During Grech's tenure as film commissioner, he effectively rectified the shortcomings of the previous administration. His office took over the management of the water tanks, previously operated by the private company Mediterranean Film Studios (MFS), following a court ruling in August 2014 that terminated the government’s land lease due to ground rent arrears.  

A public tender issued in 2015 to privatize the water tanks was unsuccessful, despite strong interest from bidders, including Pinewood Studios. Ultimately, the government decided to retain ownership of the studios, citing national interest and unresolved agreements with the final bidders. This unsuccessful tendering process led the film commission to take on the unusual and permanent role of studio manager, effectively giving them the added responsibilities of a service provider alongside their primary duty of promoting the country and streamlining processes for visiting productions. Until 2024, the commission also administered the Malta Film Fund, which aims to support the small but growing indigenous film industry.

In December 2017, Engelbert Grech resigned to give away to the newly appointed  Johann Grech, who is not related. Engelbert revived his former advertising production company after serving as commissioner, transforming its primary focus into a service company that caters to foreign producers, utilising his experience as commissioner.  

Johann, the new commissioner, has a strong background in marketing and public relations. He previously interned in the office of former UK Prime Minister Tony Blair before becoming the head of marketing for the Maltese government. Since taking office, Grech has successfully secured significant government investment for upgrading the water facility, positioning it for a future handover to the private sector. He also managed to increase the film commission's budget tenfold. One of his first achievements was to raise the rebate for film productions from 27% to 35% and then to 40%. He eventually managed to remove the small caps on the eligibility of foreign costs whilst still creating a 1:3 multiplier effect on the local economy according to press releases. The new commission has established a guiding mantra: "If you can imagine it, we can make it happen." In an interview with The Hollywood Reporter in June 2025, Johann announced ambitious plans for the next 400 years, including the construction of a sound stage, confirming blueprints are now in place.
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Updated July 2025 
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      • Malta locations from select movies
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  • Tanks
    • Tanks
    • Water SFX Videos
    • A short history of Malta's water facility
    • A history of world tanks and miniature filming techniques
  • Rebate
  • Why PCP?
  • NEWS
    • TLG talks to PCP founder about his 25 year career
    • Industry fixes on the way for Malta
    • Papillon in Malta
    • Underwater in Gozo
    • The Ghosts of Porto Palo
    • Chanel returns to same tank after two decades
    • Secret Life of Dogs
    • A tepid start to 2016
    • Water tanks for sale
    • Incentives increased!
    • 2014 - A year of change?
    • Malta promises positive developments
    • Increasing incentives for Malta
    • 2012 set to be a calmer year
    • A turning point for Malta's film Industry
    • Making the challenging Volvo commercial
    • Malta - A small island with a big industry
    • Crafting an indigenous industry for Malta
  • Contact