Since the housing prices are considered to be barely sustainable, the high selling prices for housing units that prevailed throughout 2013 and 2022 have given rise to concerns about housing affordability.

The report noted that in 2021, the median 2-young adults household could just afford a 115 square metre apartment. This is based on estimates of the borrowing capacity of two individuals that take on a loan for 35 years at the prevailing average interest rate on home loans.

A similar calculation for a one-adult household shows that the maximum affordable house price falls significantly short of prevailing market prices. Since first-time buyers constitute an important source of housing demand, these considerations are important in forming expectations about future developments in the Maltese housing market, the report said.

Financial services firm Grant Thornton Malta and real estate agency Dhalia joined forces to present an insightful study on the Maltese property market, which for the first time presents a factual and in-depth understanding of this major economical pillar.

The findings of the study were presented during an event on Tuesday organised at Magazino Hall in Valletta, which saw the participation of stakeholders in the property and construction industries and local authorities.

The study presented information on a number of topics, including housing supply and demand, the housing market outlook for 2022 – 2024, housing price sustainability, and gross rental yields.

Consultant Daniel Gravino presented the findings of the study, starting with the Selling House Price Index.

Gravino explained that that the Selling House Price Index measures the rate of change in the selling price of housing units in Malta over time..

Housing prices doubled in 2022 when compared to what they were in 2013

The findings show that between the first half of 2013 (2013H1) and the first half of 2022 (2022H1) house prices increased by 100%. This means that, on average, a property that sold for €100,000 in 2013H1 would have been selling at €200,000 in 2022H1. This represents a significant increase in house prices that coincided with fast economic growth and a strong influx of foreign workers, the report said.

Gravino noted that this, however, was not a period of even growth. The Selling House Price Index increased by around 20% between 2013H and 2016H1, and by around 50% between 2016H1 and 2019H1. Following this period, house price growth slowed down considerably.

The largest house prices increases occurred between 2016 and 2019.

Gravino further explained that in the second half of 2019, the annual growth in the Selling Price Index turned marginally negative and grew slowly in 2020H1.

In part, these developments were the result of the uncertainty caused by the political turmoil in the latter months of 2019 and the introduction of a series of restrictive measures in March and April of 2020 in relation to developments resulting from the COVID-19 pandemic, Gravino said.

The report highlighted that a similar trend is observed in the number of final deeds of sale reported by the National Statistics Office (NSO), as these dropped by 21% in 2020 when compared to 2019; mainly reflecting developments that occurred throughout the first half of that year.

In the following periods, activity in the housing market picked up again as many property seekers sought to benefit from stamp duty exemptions that the government introduced as part of its Covid-19 economic recovery plan.

A survey carried out among 268 respondents in June 2020 shows that these measures would likely incentivise as many as 57% of property seekers to either ‘buy sooner’ or ‘buy more expensive’ than they originally intended, or both, the report said.

In line with these expectations, NSO reports that 3,978 promise of sale (POS) agreements were signed in the first quarter of 2021 alone. Activity picked up to such an extent that the volume of POS agreements in the first quarter of 2021 exceeded pre-pandemic levels.

The study found, however, that in 2022H1, growth in the Selling House Price Index was marginal, in part reflecting a decline of around 33% in the number of POS agreements when the first quarter of 2022 is compared to the same period in the previous year.

Meanwhile, Gravino also spoke about the findings of study related to the Rental House Price Index.

He said that the Rental Price Index increased significantly, because a housing unit that rented for €500 per month in 2013H1 would have been renting for €710 per month in 20221H1.

According to the report, the Rental Price Index increased by 42% over the nine-year period to 2022H1.

It was also highlighted that when the number of foreign nationals residing in Malta started to grow at a very fast pace – from 2016 onwards – rent, instead of ownership, became an increasingly popular choice.

In part, this tendency to rent rather than buy is likely the result of economic immigrants thinking of Malta as a temporary place of residence.

Following a sustained period of growth in rental prices, came a steep fall.

In 2020H1, listed rental prices were around 10% lower than the prices charged during the comparable period in the previous year. By 2020H2, the Rental Price Index had declined by as much as 16% over the same period in the previous year, the report said.

“The key insight of this is that the lower rental rates and relatively stable house prices suggest that property investors believe the dip in rental prices to be temporary. Therefore, one ought to expect further downward pressure on prices,” Gravino said.

Speaking about Housing Supply, it was noted that Permits for new housing units increased substantially since 2016, amounting to 20k in 2018 and 2019 alone. These add to the housing stock with a time lag of 1-3 years after the issuance of the permit.

In contrast to previous years, in 2020 and 2021, additional housing supply outstripped additional demand, thereby putting downward pressure on prices.

However, the situation is complicated by international developments that have impacted the global economy. In particular, the cost of raw materials used in construction has soared. Conservative estimates indicate an increase of circa 20% over a very short period of time that will push house prices upwards. A eurozone interest rate rise in response to high rates of inflation may put additional downward pressure on house prices as it translates into higher borrowing rates for both first time buyers and investors. The future for the housing market is challenging, the report said.                                

Speaking about Gross Rental Yields, Gravino noted that grow rental yield for the average housing unit from 5.3% in 2019 to 4.6% in 2021. Depending on the locality, it varies between 3.9% and 5.6%.

Meanwhile, when looking at the increase in selling and rental prices, the document states that what may seem as a moderate increase in property prices at face value is actually a substantial increase in the price per square metre of floor area.

Another distinguishing factor calculated between the two indices is advertised price point and the actual selling price. The publication concerns itself with the actual transacted price and this affects the outcome of the Maltese housing market study.

Prior to the presentation of the study, Grant Thornton Partner and Head of Advisory George Vella, followed by Dhalia Chairman Chris Grech opened the event in the presence of Economy Minister Silvio Schembri and Planning Minister Stefan Zrinzo Azzopardi.                                      

The two industry veterans discussed what prompted both organisations to work on this ambitious and first-of-its-kind study of the property market in Malta and Gozo.

The report combines different factors pertaining to house prices collated by Dhalia’s network of agents. This information was then categorised and analysed by Grant Thornton’s data analysts with the result presenting a faithful picture of the property market, which not only takes into consideration the location of a property but also its specific features. Such methodology allowed measuring the rate of change in the selling and rental prices of housing units in the country over time.          

“This report seeks to understand the key determining factors of the property market. Without a thorough understanding of the behaviour and impact of these factors, it is highly difficult for anyone to form any meaningful insights and opinions about this extremely important industry,” Vella said.        

Dhalia Chairman Chris Grech, who was speaking on behalf of Dhalia CEO Alan Grima, said that the data being layed out today is the foundation of the sector as there are many other aspects to consider. However, this report will add context and insight on the selling and renting of property in Malta and Gozo.

He noted that Malta’s faces a bigger challenge that it needs to address because over the years development was not organised in a rural and urban system, but rather Malta has mixed use in closed areas.

Data of this sort is expected to be presented every six months, possibly exploring other aspects as well.                             

The post Market housing prices in Malta and Gozo ‘just sustainable’ first appeared on The Malta Business Weekly.

The CEO of the Federation of English Language Teaching Organisation Malta (Feltom), Caroline Tissot, said that although there are a number of factors to consider, English language schools in Malta this year are expecting a positive summer season as “the number of attending students are looking healthy”.

She added that despite the improvement in the situation, one cannot go as far as to say that things have returned to normality. The industry has suffered tremendously in the last two years as numbers dropped as a result of the Covid-19 pandemic.

English language schools were among those hit the hardest as schools were firmly shut, with no indication as to when they would begin operating again. Following the introduction of the vaccine against the virus, schools were allowed to open, but they had to operate for fully-vaccinated adult students. This situation had changed once again in July 2021 when Malta closed ELT schools again following a rapid growth in Covid-19 cases.

The Malta Business Weekly reached out to Feltom to find out the kind of summer it is expecting to have this year. Tissot said that “at face value, when considering the lifting of restrictions internationally, we can safely say that the situation has improved, but I would not go as far as saying that things have returned to normality”.

The legacy of the two pandemic years, which wreaked havoc on various aspects that impacted the industry, are still being felt. For example, the flight routes are not all open, cost of flights have increased dramatically, inflation has risen sharply and equally important is the lack of human resources. As has been widely reported in recent days, the delay in the issuing of visas is hampering the industry too, Tissot said.

She added that “notwithstanding these factors, the numbers are looking healthy and we are looking forward to a positive summer”.

Due to the English language school closures, during 2020 and 2021, the institutions experienced financial loss. Asked on whether Feltom believes that this summer will make up for it, Tissot explained that although that would be the outcome everyone wishes for, it will be possible to have a better understanding of the financial situation later in the year.

“This year a new trend is being observed where schools are receiving last minute bookings brought about by the uncertainties which are also a result of the ongoing war in Ukraine,” she said.

In 2021, the number of students attending English language courses stood at 27,853 which is equivalent to an increase of 68.9% over 2020. Asked on the number of attending students this year, although an exact figure was not provided, Tissot said that the numbers are looking as healthy as pre-Covid.

While bookings are being received and classes are filling up, the prospective students’ cautious approach to bookings makes it hard to predict an actual figure, she said.

Meanwhile, with regard to Covid-19 related restrictions, Feltom will not impose any measures on its members and schools.

“However, everyone is well aware of the recommended guidelines issued by the Public Health authorities and each school may choose which measures it wishes to implement, if any at all,” Tissot said.

ELT students will not be asked to present a vaccine certificate, as Feltom argued that the virus does not discriminate between tourists, locals and ELT students who are themselves part students and part tourists.

Like every other summer, the majority of students usually hail from European countries and this year will be no exception.

In addition, “Malta attracts students of all ages as we see professionals ranging from MEPs to business owners, to medical professionals and engineers, to mention but a few. Our rich culture, history and food are unique aspects that attract them to Malta. We also have the young learners who travel to Malta to improve their English language skills, but who also enjoy the beaches and the entertainment during their breaks. Some also choose to travel as a family”.

With regard to the duration of how long the students are expected to stay in Malta, Tissot said that this very much depends on the time of year, but during summer, an average stay would be approximately three weeks.

The industry has also had to deal with host family issues. A number of reports were made by families who have said that they will not be taking in any students this summer as they fear that the students will have Covid-19.

Asked on Feltom’s confirmation on this matter and on whether they are experiencing any difficulties, Tissot said that over the last couple of years a reduction in the number of available families was experienced. This is also the case with the ELT industry on a global level.

“There are various reasons why people have chosen not to renew their licences and some may have expressed their concerns. One must also remember that the Covid-19 virus has not been eradicated locally and it is present among us,” Tissot said. 

She added that another point to consider is that many ELT students are also vaccinated.

Tissot encouraged families to reconsider hosting students as it offers many benefits, including establishing friendships and learning about new cultures, while earning additional income.

The post ELT industry ‘cautiously’ expecting a positive summer – Feltom first appeared on The Malta Business Weekly.

This was announced yesterday by Minister for Transport, Infrastructure and Capital Projects Aaron Farrugia together with Malta Public Transport Chairman Felipe Cosmen.

An investment of €1 million was allotted to these fully electric buses which will be operating on public transport routes in Malta.

Malta Public Transport launched Malta’s first fully electric bus in conjunction with Transport Malta and TAM-Europe in 2020. The Vero 9 model went on a trial period to test the performance of the 100% electric engine on Maltese roads.

There are currently six electric buses being used for the park and ride service in Gozo. The two new buses will be used in Malta.

Addressing his first press conference as Transport Minister, Farrugia said that “transport plays a vital role in our society and our economy, and our quality of life depends on an efficient and accessible transport system.

It also leaves a significant impact on our environment, and with an increasing demand for greener transport services, we need to ensure that our national transport system is well equipped to address these challenges.”

Farrugia explained that Malta’s current bus fleet is mostly made up of the latest environmentally friendly buses, but it is now time to shift to the next level to electrically powered buses.

He said that more electric buses will be added in the coming months.

“Today’s investment is only the start of the decarbonisation plan and will be further complemented by the free public transport scheme which will be introduced on 1 October of this year, where public transport will be free for all Tallinja cardholders.

Taken together, these measures will ensure a better and cleaner future for us all,” Minister Farrugia said.

For his part, Felipe Cosmen noted that Malta Public Transport is proud to be part of the solution to reduce emissions on our islands through continued investment in clean public transport solutions.

Cosmen explained how the company constantly carries out market research to evaluate solutions that offer convenient and reliable alternatives to private transportation.

The group’s international experience allows it to share its extensive knowledge of the transport industry and adapt it to Malta’s needs.

Since the start of its operations in 2015, Malta Public Transport has overhauled the existing fleet with more than 300 brand new buses fitted with the latest Euro 6 engines, making it among the youngest and cleanest public transport fleets in Europe.

“Public transport is an important player when fighting climate change. We are not only committed to operating in an environmentally friendly manner, but also believe in leading by example, and this investment clearly demonstrates the fact that sustainability will always be high on our agenda,” Cosmen said.

He added that “we are committed to fight against climate change, but this can only be possible with the cooperation from the public.”

The post Two new electric buses launched by Malta Public Transport first appeared on The Malta Business Weekly.

He added that mask wearing remains recommended and said that this measure is being lifted because 70% of the Maltese population will be vaccinated with the Covid-19 booster vaccine by the end of this week.

Speaking on Thursday, Fearne announced some changes to the Covid-19 restrictions.

From Monday, he said that spectators will also again be allowed at sporting events as long as they have a valid vaccination certificate.

Mass events will have to remain seated for now, and the 1am closing time for establishments remains in force.

Since restaurants will now only be accepting vaccinated people, they can do away with the two-metre rule and operate at full capacity, according to the license they possess, he said.

The health authorities will be publishing a full list of the venues where a vaccine certificate will be required to enter later today, Fearne said. 

Employees working within the venues on the list and who have direct contact with clients will also be required to prove their vaccine status. However, as of yet, there are no plans to make this obligatory or to introduce mandatory Covid-19 vaccination, he said. 

Employees who have direct contact will be given until February 1 to get vaccinated against Covid. 

Fearne added that these measures can continue being relaxed once the number of people who receive the Covid-19 booster vaccine has increased. 

Meanwhile, Fearne also gave an outline of a number of categories who are exempted from a number of Covid restrictions.

People who have been abroad and who have not had the opportunity to receive the booster will given a grace period until the February 1 to come to Malta without a third dose, whilst after February 1, the quarantine period will be removed for those people travelling to Malta specifically to receive the Covid-19 booster. 

In addition, staff working in the venues which will be on the list and who do not have direct contact with clients will also be exempted from showing their vaccine status.

Those aged between 12 and 18 years, will not need to show the booster vaccine certificate. Children under the age of 12 and pregnant women who are in their first trimester and test positive, thus were not able to take the booster vaccine, are also exempted. 

Fearne also said that people who could not receive the vaccine for medical reasons, such as anaphylaxis, will be allowed to enter such establishments without the vaccine certifiicate as long as the person gets a certificate from their doctor and from the Superintendent of Public Health.

People who recently tested positive for Covid-19 and who cannot take the booster for now will also be exempted. As a method of proof, these people will make use of the Covid-19 application, Fearne said. 

He highlighted that Malta isn’t the only country to put these measures into force, saying that Germany, France, Italy, Greece, Austria, Denmark, Ireland and Estonia have also put similar measures into place. 

Countries like the Netherlands have not put similar measures into place as instead they have had to go into lockdown and shut down a number of establishments. 

“We do not want this from happening. As long as people get vaccinated with the booster there will not be a need to take such drastic measures,” he said.

Fearne referred to a statement published by the World Health Organisation’s regional director Hans Kluge, who warned that some EU countries are still yet to experience the worst of the pandemic.

The WHO expects that half of the people residing within the EU will have the Covid-19 virus.

Asked by The Malta Independent on whether the health authorities are concerned with such a statement and whether Malta’s hospital system is equipped enough to handle this Covid-19 wave, Fearne insisted that “the Covid-19 booster is the solution.”

“Although 70% of the population will have received the third vaccine jab, we need to keep a close eye on the situation on our community, and the population needs to remain cautious and responsible,” Fearne.

Speaking about those people who died whilst positive with the Covid-19 virus, Superintended of Public Health Charmaine Gauci said that the overall majority had underlying health conditions.

However, some had not received the vaccine, some had both and there were also some who had the Covid-19 booster. Despite this, it was said that without the vaccine the number of deaths would be much higher.

Asked on whether the health authorities are considering revising the current quarantine rules if herd immunity in the community increase, Fearne said that “now is not the time to do that.”

With regard to whether the recovery pass is only applicable to those who tested positive through a PCR test and not for those who tested positive through a rapid test, Gauci explained that the recovery certificate is only issued by the EUDCC and according to EU rules, as of yet, a person who tested positive through a rapid test is not eligible for a recovery certificate.

However, these people will still be able to enter the establishments by showing their PCR or rapid test upon entry. The important thing is that whoever is responsible for checking these tests, ensures that the test is not older than six weeks, Gauci said.

Fearne noted that the active Covid-19 cases in Malta are of the Omicron variant, as “nine out of the ten cases in Malta are of this variant,” he said.

He once again appealed to the general public and urged everyone to get the Covid-10 booster, saying that “science is not a popularity contest.”

“The booster side effects are minimal and whoever thinks that the side effects are worse than the virus is wrong,” Fearne said.

The post Mask wearing rules to ease; two-metre distancing in restaurants to be removed first appeared on The Malta Business Weekly.

Sport Malta to invest in more sports facilities

A new income tax rate of 7.5% for artists will be introduced from basis year 2022.

For the purpose of artists’ income tax, the government will introduce a mechanism that sets artists’ income over an average of 3 years.

The government will be allocating €1 million to create a guarantee scheme for independent artistic activities with the aim of helping producers and promoters to recover costs that cannot be recovered due to the unexpected restrictions that may be necessary if circumstances change.

In addition, the government will continue strengthening the aid scheme for seats that cannot be sold in the event of new restrictions on events. To this end, a total of €2 million has been invested.

The government will also create a support scheme for independent art projects to be run by the Malta Council for the Arts. Another €2 million have been allotted to this scheme.

The Government will continue to help and incentivise artists, producers and promoters of artistic, cultural and entertainment activities so that they too can continue to fully contribute to the artistic and economic recovery of the sector.

Sports

From next year, Sport Malta will continue to invest in more sports facilities including the Marsa Complex and the Olympic-sized swimming pool in Cospicua

Work will also be carried out on the waterpolo pitch in Marsaskala, Valletta and Marsaxlokk.

A new football stadium will be built for Msida St. Joseph.

For rowing enthusiasts, Sport Malta will also invest in a national rowing tank and enable the training of this National sport.

The Outdoor Velodrome project will be incorporated into the phases of the ongoing project in Ta ’Qali.

Work on the Aquatic and Sports Centre is progressing at a rapid pace. Through this investment, Gozitans will be enjoying an Olympic level swimming pool as well as a new sports pavilion in the heart of Victoria, Gozo. This is the largest investment for the sports field ever made for Gozo.

The Marsa Complex will continue to extend the facilities provided to accommodate a gymnastics centre where athletes will be able to carry out their training with adequate and safe facilities.

Broadcasting

Investment from PBS will progress for a modern TV House with the aim of better serving its stations.

An investment for a television stage will also take place, whilst a Malex House with production facilities will be developed to welcome a new newsroom along with news studios.

The post Arts and lifestyle: New income tax rate of 7.5% for artists first appeared on The Malta Business Weekly.

Anti-racism strategy to be implemented

The government is carrying out work on drastically reducing the number of people living in the Marsa migrant centre. This process is at an advanced stage with the aim of completely shutting down the centre.  

Among the measures the government has implemented towards reducing irregular immigration, it will continue to strengthen the human resources of the Immigration Police and the Agency for International Protection.

In addition, the government envisions to generate this area and make it possible for facilities and space in this area to be used by organisations, children, and young people. This will be done without putting a burden on other localities.

Community Policing & Armed Forces of Malta

Over the next year, the Community Policing service will be extended in various localities including Żabbar, Xgħajra, Marsaskala, San Ġwann, Żebbuġ, Gżira, Msida, Pietà, Mosta, Mġarr, Żurrieq, Safi and Kirkop.

With an investment of around €50 million, the Armed Forces of Malta’s Maritime Squadron will be getting a new patrol vessel. This vessel will be the largest of its kind in Malta and will strengthen the surveillance in Maltese waters and border protection.

Civil Protection to further invest in resources

The Civil Protection Department will continue investing in resources. These include the replacement of vehicles by purchasing new trucks, vans specially designed to serve Malta’s narrow roads, investing in vehicles with which workers can better reach high-rise buildings and investing in modern technology as well in protective clothing for officers.

Legal Aid & Security

The government will continue investing in legal aid to create a digital system where prospective clients eligible for legal aid can apply online, as well as from the service.gov hubs located in different regions and villages around Malta.

Meanwhile, security will remain one of the main pillars of the Maltese government.

Victim Support Agency

In 2022, the Victim Support Agency will be further strengthened and will continue improving its services within the areas of victims’ rights, while remaining more efficiently accessible, and increasing the workforce and professionals serving in it.

Equality

Within the field of equality, the government will continue working on keeping Malta among the most inclusive in Europe. Initiatives will be implemented including an equality brand that certifies local companies, the empowerment for diversity project and expanding the program ‘I belong’.

The government will also be implementing an anti-racism strategy together with the social partners and the media.

Animal Protection and Rights

In 2022, the government commits to prepare a national strategy for the protection and welfare of animals. Over the next year, the government will begin exploring the possibility of opening a modern rehoming centre for animal adoption, including street animals.

The post Security and migration: Marsa migrants centre to be shut down first appeared on The Malta Business Weekly.

Malta to have a non-permanent seat in UNSC in 2023 and 2024

Development of first rehabilitation centre at CCF for 140 people

The Attorney General’s Office will be given additional prosecution functions in coordination with the police, the Finance Minister announced.

This will be in line with a view to developing a specialised prosecution service in the Attorney’s General’s Office, while allowing the police to focus on offence investigations.

This is to provide a better-quality prosecution service and reduce delays within the criminal justice system.

One of the budget’s proposals for 2022 will entail the development of the first rehabilitation centre within the boundaries of the Corradino Correctional Facility. This centre will cater for around 140 people.

The government will continue working on strengthening rehabilitation services.

The retirement age of judges and magistrates within Malta’s judiciary has been extended, whilst new appointments have also been made within the Judiciary.

The workplan drawn up for the Maltese authorities to address the action plan provided by the FATF is serving as a guideline for the investigative work of authorities. The ongoing collective work being carried out is expected to yield the desired results, Caruana said.

Throughout 2021, the Maltese government worked on ensuring Malta’s compliance with the recommendation put forward by the Venice and Greco Commission. This was done by carrying out reforms which address the recommendations made by Moneyval.

With an investment of more than €2.2 million, the government strengthened the structure of the Asset Recovery Office by implementing measures which provide the recovery of the proceeds of crime.

Meanwhile, within the field of Civil Procedure, a law came into force aimed at reducing the work pending before the Court of Appeal. This was done by providing the possibility for the court of appeal to give a hearing only in those cases where it considers that this is necessary.

The government also sought to reduce the outstanding work by increasing the compositions of the Court of Civil (Superior) Appeals in order to speed up the appeals process and serve the citizen between and within a reasonable time.

Throughout 2021, the first collective agreements were signed for Disciplined Bodies with an investment of over €15 million so that now the 5,000 workers who make up the Disciplined Bodies have better working conditions and rights.

The strategy of transforming investment in infrastructure, specialized equipment, new vehicles and human resources training is being implemented.

Foreign relations

With regard to Malta’s role in the United Nations, preparations will be intensified in June 2022 so that for two full years – 2023 and 2024 –  Malta will have a non-permanent seat within the United Nations Security Council (UNSC).

The government has invested heavily in providing humanitarian assistance in regions affected by disasters or crises. This was carried out in countries such as India and the Dominican Republic, Libya and Tunisia.

This commitment through the Development Assistance fund will continue to be sustained over the coming years.

In addition, over the coming year Malta will continue to be an important voice in favour of multilateralism. The government believes that the platform of international organisations should be used to reach pro-peace compromises.

The post Governance: Attorney General office to take on additional prosecution functions first appeared on The Malta Business Weekly.

The fast ferry service kicked off around five months ago and is operating between Valletta’s Grand Harbour and the Mġarr Port in Gozo.

This newsroom got in touch with the respective authorities for an update on the usage of the fast ferry service.

From the figures presented by Transport Malta, a total of 42,424 passengers made use of the fast ferry service in June. This led to a total of 1,086 trips covered by the fast ferry.

In the month of July, the fast ferry saw an increase of 16,144 passengers when compared to the previous month as a total of 58,568 passengers made use of the service.

A total of 1,381 trips were covered by the fast ferry in the month of July.

Meanwhile, the number of passengers continued to increase in August as 73,104 passengers made use of the service, covering a total of 1,406 trips.

The main purpose of introducing this service was to improve the quality of life for Gozitan workers. During its inauguration, Prime Minister Robert Abela had said that this service would significantly reduce travelling time for Gozitan workers who work in Malta. The fast ferry service has a 45-minute travel time.  

The service makes use of terminal facilities in Mġarr and in Valletta – in the area known as Ta’ Liesse – facilities which were built following a €5 million investment by the government.

The post More than 170,000 passengers used fast ferry service in first three months of operation first appeared on The Malta Business Weekly.

In June, Malta opened up for tourism, allowing tourists who are both fully vaccinated and unvaccinated to enter the country. However, Malta then began to see an increase in positive Covid-19 cases in July. As a result, new rules came into effect on 14 July, only allowing people with a recognised vaccination certificate to enter the country without the need to quarantine.

The Malta Independent contactedFATTA President Iain Tonna to better understand the effects of this decision on locals travelling abroad and cancellations.

He noted that the reason for cancellations might not only be due to travel restrictions, but may also be due to other reasons as well.

Under the current travel restrictions, all unvaccinated people must quarantine for 14 days upon arrival. This new restriction might also pose a problem for families whose children are still in the process of getting inoculated but would not be in time for their vacation.

Tonna explained that families in this situation chose to either cancel their holiday or postpone it to a later date when their children are fully vaccinated in order to avoid mandatory quarantine upon arrival.

At the beginning of the summer season, a positive trend in bookings was noted.

“The response from the public was probably even slightly better than we were expecting,” Tonna said.

“We cannot be certain that the cancellations happened due to the new travel restrictions alone. We believe that this happened because of an array of reasons, including the increase in active Covid-19 cases in recent weeks as well as the scepticism and fear felt by people to travel.” 

As of 26 July, the number of Covid-19 active cases stands at 2,262. This number dropped slightly as 94 new cases were registered and 126 people recovered.

Air Malta had said that booking activity from the local Maltese market had not previously kicked in and currently shows no sign of doing so.

The travel agents’ association was asked whether they felt the same way with regards to the response of people residing in Malta travelling abroad. 

In reply, Tonna highlighted that “the response and interest to travel from the public was quite positive and better than we expected. However, many people still left it to the last minute to book, therefore the fear and scepticism to travel is still present.”

“Initially we thought that the response from the public to travel following the opening up of tourism would be better than our expectations. The increase in positive Covid-19 cases did not help as we’re now estimating that the number of locals travelling abroad in the summer season will probably be worse than last year,” Tonna said.

Asked whether the association is concerned, Tonna remarked that people are being very cautious when it comes to travel. “It is very difficult to predict which way the situation will go as this all depends on the number of active cases as well as the perception of the public.”

He added that although the number of active cases increased, one was focusing more on hospitalisation and mortality rates. Unfortunately, in recent days this has changed as the number of Covid patients who are being treated at Mater Dei Hospital increased from 19 to 39 patients in two days.

“We are currently waiting to see what will happen in the next few days in order to determine whether this is a one-off trend or whether the Covid numbers will start increasing again, even in terms of hospitalisations, as this will then become a problem,” Tonna said.

Speaking about the overcrowding at the Malta International Airport, which was caused due to passengers having to wait as long as two to three hours to get through the terminal, Tonna said that this situation has now been addressed.

Minister for Tourism Clayton Bartolo had said that the airport would have a three-fold increase in the number of desks and people working to reduce this overcrowding.  

“Although the situation hasn’t been resolved completely, it is being addressed. Unfortuantely, some might still have the perception that the situation is still not under control and fear spending such a long time in a closed off area,” Tonna said.

With regard to the Seniors’ Market, Tonna said that this age group remains cautious to travel as they adopted the ‘we will wait and see’ approach. 

Meanwhile, the majority of locals who are travelling seem to be heading to countries which are close to home.

Tonna noted that “countries like Greece, Cyprus and Italy are experiencing a demand. Sicily is also another destination that locals seem to be leaning towards as many opt to use their own vehicle to travel, thus having better control over who they come in contact with.”

The post Pace of new bookings by Maltese slowed down drastically – travel agents association first appeared on The Malta Business Weekly.

Over the past year, tourism was among the sectors most affected by the Covid-19 pandemic due to an increase in active Covid-19 cases, travel restrictions as well as other precautionary measures. With the roll out of the Covid-19 vaccine, local businesses are trying to move forward with hopes of getting back on their feet following a pandemic.

Speaking with the Malta Independent, Muscat said: “We are not worried about closures, but we are more concerned with the fact that we are being deprived of potential foreign tourists who cannot travel to Malta because they are still not vaccinated against the virus.”

Under the current travel restrictions, all unvaccinated people must quarantine for 14 days upon arrival.

Asked whether the association saw an increase in cancellations following this change in policy by the health authorities, Muscat said that the situation fluctuates, as since things are constantly changing one cannot identify a clear-cut pattern of what is happening.

Muscat added that while a number of tourists have been entering Malta according to the current travel restrictions, it is nothing compared to the number of tourists who visited Malta in 2019. “Nonetheless, some tourists are still here, which is positive to see.”

“We can only hope that the present situation improves at a slow and responsible pace. It is crucial that as a country, we are careful and cautious and avoid making hasty and rushed decisions which will only cause confusion,” Muscat said.

He explained that members of the GTA report a number of cancellations made mostly by foreign families. “The reason is that, since many families might have children who are 12 and who are still unvaccinated, the new travel restrictions pose a problem as these families would have to go into mandatory quarantine upon arrival.”

On a more positive note, Muscat highlighted that cancellations made by foreign tourists are being substituted by the demand from the domestic market.

Consequently, he also noted that bookings made by Maltese residents compensate for the cancelled bookings made by foreigners, but said that this does not compensate for the bed nights.

Muscat explained that “when foreign tourists visit Malta, their duration of stay would probably be between five to seven days, whilst when Maltese visit the island of Gozo, their stay would probably be over the weekend, thus for two to three days. Therefore, although bookings made by Maltese citizens compensate from the aspect of arrivals, they do not compensate from the aspect of bed nights.”

The local market will never fully compensate for the foreign market, Muscat said.

Asked for an overview as to what Gozo’s tourism industry is like, Muscat remarked that although a number of restrictions have been eased in terms of travelling, many people are still sceptical and do not feel safe to travel to another country just yet. Consequently, people opt to take a holiday break and visit Gozo instead.

Meanwhile, he said that when people visit Gozo this is reflected in restaurants. “These businesses are trying their utmost to move forward, and they now have the possibility to do so. The Covid-19 government vouchers have also been of great help for food establishments,” Muscat said.

Overall, he expressed his hope that the situation gathers momentum, in the sense that more people will get vaccinated and the number of active cases will decrease.

“At this stage, we are building confidence in the hopes of returning to a steady normality but at a slow pace. We should not be adventurous, but instead ensure that all precautionary measures are respected and followed. As long as the health situation is under control, the tourism industry will continue working,” Muscat said.

The post ‘Gozo will not return to a state of closure, Covid-19 vaccine is our weapon’ – GTA first appeared on The Malta Business Weekly.