Tourists who book a stay of at least three nights directly through a Maltese hotel will be eligible for the financial handouts, with rebates rising according to the category of accommodation.
Tourists who opt for a five-star hotel will receive 200 euros, rising to 220 euros if they choose to stay in a hotel on Malta's sister island Gozo.
Tourists in four-star hotels will receive 150 euros while those at three-star hotels will receive 100 euros.
The 3.5-million-euro scheme is part of a 20-million-euro drive that the Maltese government is undertaking in the hope of reigniting the tourist season in time for summer.
Travel and tourism directly accounted for 16% of the country’s GDP in 2019, according to the World Travel & Tourism Council. Airport traffic was down more than 75% last year, as a result of the Covid-19 pandemic.
Malta is hoping to market itself as one of Europe’s safest destinations this summer, with the country currently leading the EU's vaccination charts.
As of Friday, more than 230,000 vaccine doses had been administered in the country of 500,000.