Tourism Minister Clayton Bartolo announced the scheme on Friday, saying that with most Covid restrictions expected to be lifted by June 1, tourists booking summer holidays directly through local hotels would receive the handout.
World Travel and Tourism Council data show the tourist industry directly and indirectly accounts for more than 27 percent of Malta's economy, but the sector has been destroyed by the Covid-19 pandemic.
The country attracted more than 2.7 million foreign visitors in 2019 but figures have fallen by more than 80 percent from the virus was detected in March 2020.
Bartolo said tourists booking at a five-star hotel will get 100 euros from Malta's Tourism Authority, which will be matched by the hotel for a total of 200 euros.
Tourism Minister Clayton Bartolo said "The scheme is aimed at putting Malta's hotels in a very competitive position as international tourism restarts"
Near about 35,000 visitors will be benefitted under this scheme.
Malta has the highest virus vaccination rate in the European Union, having given at least one dose to 42% of adults.
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