Speaking during the Malta Hospitality Forum, Bartolo said that the cruise liner expectation set for this year is a significant increase from the 800,000 tourists that came to Malta last year.

Moreover, he also said that in the coming weeks and months, the government will also be holding talks for the long-haul market when it comes to air connectivity, with countries such as the US, Japan, Australia, and those in the Gulf. With this, Bartolo said that the tourism industry will enjoy more opportunities for people to choose Malta as their destination.

In general, Bartolo said that the tourism sector, for the first quarter of the year, had superseded figures achieved in the same quarter of 2023. Moreover, he said that in terms of air connectivity, the country has also increased connections with the UK, which Bartolo described as being “our biggest market.”

He said that the government is working towards diversifying its source countries to welcome tourists from more places, as well as also diversifying the age distribution and the motivational spectrum for tourists to come. He said that this current generation of tourism industry is the first with the widest array of data intelligence which can be used to do things in a more sustainable way.

The minister said that in order to future-proof the tourism industry Malta also needs to invest more in public cleanliness. On this the government is investing €6 million in cleanliness equipment to be used in tourism zones, “setting the bar higher”.

Moreover, on new niches, he said that the government is underway with negotiations to open military tourism. He said that currently the ministry is taking stock of what Malta can offer for this new niche, in order to offer it all year round.

Bartolo said that to attract more quality tourists, quality and quantity need to go hand in hand by offering new experiences whilst also remaining sustainable. As an example, he said that there could be situations where a tourist would be recycling in a five-star hotel, whilst also eating at a family-run restaurant rather than a luxurious option.

“We all need to do our part for visitors to exceed expectations,” he said.

Jumping onto the skills card, which is now obligatory for every employee working in the hospitality industry to have, the minister said that this is one of the characteristics for quality service to elevate across all levels. In general, he said that in order to future-proof the tourism industry, whilst remaining sustainable, one needs to always keep the economic, social, and environmental aspects in mind simultaneously.

Present for the forum was also PN’s shadow minister for tourism, Mario de Marco, who said that the government, unlike any other sector in Malta, invests in the tourism industry for an immediate return on investment. Describing the sector as the goose which lays the golden eggs for the economy, de Marco said that “we need to be careful and protect that proverbial goose”.

He said that certain elements of the Maltese tourism product are suffering from “tourism fatigue”. He questioned whether the Malta International Airport was expanded enough as it is to cater for the tourists if they increased and also questioned how the country would cope with an increased number of tourists.

On parts which could improve to offer a better touristic experience, de Marco highlighted the country’s infrastructure, public transport, the health sector, energy generation, and the waste management system. He said that if the increasing arrivals keep growing together with the population, the economic model needs to start diverging from its dependency on the high labour intensive market as intensive platonic can negatively affect the tourism industry indirectly, which in turn will cripple the economy of the country. De Marco noted that since a decade ago, Malta has increased meaning that the infrastructure needs to better cater for the people.

The PN MP also made reference to Malta’s potential carrying capacity of 4.7 million tourists by 2027, following a study done in 2022 by the Malta Hotels and Restaurants Association, in collaboration with Deloitte Malta. However, he said that despite the study going in the right direction, there was very little discussion on the figures. Despite not advocating for a cap on tourism capacity, de Marco noted that Malta needs a planned approach on the matter, and set realistic targets.

De Marco also questioned the Malta Tourism Authority’s marketing strategy, and asked whether it was still feasible for the government to invest in recurring funds and check on the cost of benefit. He added that the MTA has no objective transparency criteria, “resulting in lack of accountability”. The PN MP urged for a discussion on the matter to discuss the issue which he hopes will lead to a more equal level playing field for competitors.

Moreover, he said that air connectivity should be given more importance, given that it is one of the main pillars for the tourism industry. Whilst noting that KM Airlines cannot be compared to Malta’s previous national airline, he said that more needs to be done to avoid the same fate of bankruptcy. “Sometimes we have to follow rather than lead,” he said, whilst questioning whether it was time for Malta to spread its air market share with other airlines like in other countries.

On his end, MHRA President Tony Zahra also commented on this aspect and said that “it’s clear decision makers need to take decisions which might not be very pleasant.” Zahra said that, when it comes to tourists, “the American market is the best market, people spend the largest amounts of money.”

Commenting on the future-proofing of the hospitality industry in general, the MHRA president said that the problems within the industry lie in the very basics. He said that industry operators need to ensure they are offering the best hospitality experience by having well-trained people who are customer-facing, who smile, give good service, and find purpose in their job. Zahra also mentioned artificial intelligence as a tool to better curate customer profiles.

“Adapt and adopt, otherwise we are going to be left behind,” he said.

Key Findings from the Hotel Performance Results for Quarter 1 and Restaurants Survey

In a report by Deloitte Malta, data showed that in comparison to the first quarter of 2023, the first quarter of 2024 saw an increase in tourist arrivals by 17.7%. The number of nights tourists chose to spend also saw an increase of 31.3% for the same period.

In the same quarter, when compared to 2023, tourists preferred to spend their nights in collective accommodation, which saw an increase in market share to 58.4% from 55.3% last year.

In a survey involving 46 hotels for the first quarter of 2024, 18 of which were located in the Sliema-St. Julian’s area, figures showed that tourists preferred to stay in five-star hotels. Presenter Financial Advisory Leader Matthew Xuereb said that five-star operators have seen rates approaching pre-Covid levels in the first quarter of 2024.

Despite having a more rapid recovery post-Covid-19 pandemic, four-star hotels led in their average daily rate, which increased by 13.7% during the first quarter of this year compared to 2023. The four-star hotel category also led in non-accommodation income, with a 12.2% increase compared to 11.1% in five-star hotels. In the three-star category, there was only a 0.8% increase.

Overall, the most significant payroll cost increase was seen in the three-star hotel category with a 29.3% rise for the same period, followed by a 15.7% increase in five-star hotels and a 10.7% increase in four-star hotels.

In the restaurant survey, a total of 45 restaurants participated. Xuereb noted that given the lack of participation, these results are not representative of the industry.

Figures showed that 60% of respondents came from family-owned restaurants, with 63% of these stating they were first generation. In the first quarter, these restaurants reported under 50 daily covers, with fewer than 100 over the weekend. When compared to 2023, restaurant owners reported the same median spending of €25-€35 per person in the first quarter of 2024.

Additionally, these restaurants employed 80% of their personnel who are non-Maltese. Figures show that 62% of these employees have spent more than two years with the same establishment, and overall their employers are rather satisfied with their performance.

The post One million cruise liner tourists expected in 2024, and a new military tourism niche, Minister says first appeared on The Malta Business Weekly.

“There was excessive overdevelopment,” he said in an interview.

Borg noted that prior to the government’s introduction of a scheme reducing stamp duty on Gozo property purchases from the standard 5% to 2% back in 2017, the property market was stagnant.

He mentioned that during this period, other factors, such as the introduction height limitations on buildings, also played a role. Additionally, activists have claimed that developers were exploiting this clause to maximise the number of floors in a single project.

When it comes to property buying, following the introduction of these measures, Borg mentioned that for a long time, Gozo was topping the charts every month.

In fact, the highest number of promises of sale agreements in Gozo occurred during the Covid-19 pandemic in 2021, with 2,323 agreements. Borg also highlighted that during this period, the quality of property built decreased as developers squeezed in more floors and rooms wherever they could in their projects.

“The Chamber is not against development but in favour of good and sustainable development,” he said.

The Chamber’s real estate subcommittee also noted a difficulty in selling properties built during this peak, as such properties lack quality, he said.

Although the Chamber is in favour of the government’s removal of the 2% blanket incentive, Borg mentioned that it was also advocating for other measures to replace it. However, following the removal of the incentive, the government did not come up with a replacement. Borg suggested that potential replacement measures could include incentives for property owners who choose to build single houses instead of blocks of flats, or incentives for developers to construct sustainable apartment blocks, thereby promoting quality development.

Borg mentioned that there are other issues, such as the fact that when it comes to planning, Gozo is considered on par with Malta. He explained that the Gozo Regional Development Authority (GRDA) has proposed a paper tailored to Gozo’s context. For instance, one of the GRDA’s policy proposals is the establishment of a design advisory committee specifically for Gozo.

The PA also issued new design guidelines for Gozo “but more needs to be done”.

Following the removal of the 2% incentive, Borg noted that there was a slowdown in the Gozitan property market.

He said the Chamber is not against the new building policy, which will require new buildings to have a façade made out of stone, with the same rule applying to the back of a building if it overlooks an Outside Development Zone (ODZ) area. However, also in this case it noted that more needs to be done.

Borg acknowledged that the establishment of the GRDA was a positive step. However, he mentioned that the authority currently lacks power in policy areas.

“It seems that the element of Gozo being a region is still not integrated in the national policy process,” he said.

Gozo connectivity

Borg believes that without a permanent link between Gozo and Malta, there should be heavy investment in the vessels that serve as transportation means, and possibly an increase in the fleet of ferries.

At present, four vessels regularly operate between the two islands, although there are times when the number is reduced to three when one of the ferries is undergoing maintenance or repair work.

With the idea of having a permanent link – be it a bridge or an undersea tunnel – shelved again, the Chamber is calling on the government to provide a long-term plan and for a decision to be taken on the investment that needs to be made on transport services between the two islands.

Borg said that if the government is to invest in the Gozo Channel fleet, it must start thinking about it now because the three main vessels are now close to being 25 years old.

Given the increase in traffic between the two islands, also as a result of the increase in population and tourism numbers, the addition of a fourth vessel to ply regularly between Mġarr and Ċirkewwa was needed. The Nikolaos was leased and added to the Ta’ Pinu, Gaudos and Melita vessels, although the former is used sparingly.

He emphasised that any new vessels that join the fleet must be accessible to everyone and adhere to certain pollution reduction standards. Added to this, there must be an investment in the two ports, those of Mġarr and Ċirkewwa, so as to be able to meet with the demand and improve the facilities available.

The Chamber, however, still believes that a certain form of permanent link needs to be constructed, with a tunnel seen as the best option. He referred to underwater tunnels that link the Faroe Islands to facilitate transport, adding that their construction did not “result in excessive development”.

“It seems that there is no political will,” he lamented when asked why despite being endorsed by both the PN and PL, it was never started.

Speaking of other decisions that need to be made regarding services linking the islands, Borg referred to the Gozo Fast Ferry and emphasised that the timetable needs to become more reliable. He emphasised the problem of gaps in the winter schedule, which can occasionally extend up to four hours.

Tourism in Gozo

Asked about the tourism situation in Gozo, he spoke about significant changes, particularly during the Covid-19 pandemic. He noted the importance of domestic tourism, not only during this time, but even in the pre- and post-pandemic years. Regarding domestic tourism, he mentioned that some people visit Gozo all year round but tend to avoid certain important periods, such as during the Santa Maria feast in August.

Borg noted that the traveller profile is constantly evolving. He said that, overall, travellers are reducing their stay in Gozo but may be increasing the frequency of their visits throughout the year. Regarding foreign travellers to Gozo, he said that the numbers have not yet returned to pre-Covid levels.

With reference to this year’s summer expectations, he said that domestic tourism appears to be a consistent trend, remaining stable. With regard to foreign tourism, he noted that at this stage there are many uncertainties, but necessary marketing efforts are underway.

He said that the absence of specific niches in Gozo, such as scuba diving or unique reasons for travelling to the sister island, makes promotion more challenging. Regarding potential sectors that could serve as a “main selling point” on their own, Borg highlighted Gozitan culture. Despite the island’s developed cultural calendar, which provides an enriched experience for tourists and locals alike, Borg noted that “these niches take time to build”.

Other niches include hiking and walking. Borg emphasised that for these niches to be sustainable, proper maintenance is crucial, such as the cleaning of paths and ensuring full access to hikers. Currently, they encounter certain issues because some of the pathways intersect with private property, thereby limiting accessibility. Borg proposed resolving the issue by implementing a compensation mechanism, wherein the owner of the private property would receive financial compensation in exchange for granting access. Additionally, Borg mentioned that climbing and abseiling were once popular activities, but similar issues arose due to private property concerns.

More powers to Gozo

As a community, Borg also raised the question of whether Gozo should be granted more powers as a region. He mentioned that this concept is still up for discussion, but it’s certain that these powers would be overseen by the Gozitans through structures situated in Gozo.

He mentioned that more often than not, the approach of national entities regarding how certain projects might affect Gozo comes as an afterthought. Borg explained that according to the laws of the GRDA, every government entity proposing a specific law or policy must conduct a regional impact assessment to determine how such policies or rules would impact the island.

He mentioned that over the years, various experiments were conducted regarding entities representing Gozitan interests, such as the Gozo Civic Committee in the early 1970s, which was later replaced by the Ministry for Gozo in 1987.

Borg said that back in 1864, Gozo formed its own Church diocese because the Gozitan Church was not being properly served during that time period. He noted that this diocese is still operating to this very day and it turned out to be a very fruitful move. Evidence of this is seen in the culture attributed to Gozitan churches and Catholic traditions that have emerged over the years.

“I think we should follow those steps and ask questions, because sometimes we expect (authorities) from Malta to tell us what to do,” he said.

Small supermarkets

Borg was also asked whether there was still a place for small supermarkets in Gozo.

He acknowledged that it is already a difficult situation for small supermarkets to survive in Gozo because bigger chain stores offer better prices. However, he noted that despite not serving as the main supermarket for most citizens, they are still more accessible for everyday basics, especially for the elderly who may not have access to transportation. Borg proposed that the government could offer incentives to support these supermarkets, as they play a vital role within the community.

He emphasised that Gozo doesn’t need to replicate Malta and that there are other opportunities that can benefit the island. As an example, he mentioned the Queen Mary University of London campus in Gozo, which is testament to this.

Borg said that this investment is testimony to how successful a project in Gozo can be. He added that the Campus is now at full capacity, accommodating around 300 students. He noted that when it comes to Gozo, an investment does not have to be large-scale, as it would be easier to adapt to the smallness of the island.

The post Development in Gozo has not been sustainable, GBC CEO says first appeared on The Malta Business Weekly.

41% of the total investment derives from EU funds, it was said.

During a press conference, Energy minister Miriam Dalli said that the aim of this plan is to increase the country’s water supply, whilst improving quality and keeping the economic plan in mind.

The comprehensive plan will address challenges from 2023-2033 such as water scarcity, climate change, and the need for efficient drainage management, said the Minister.

The plan will also establish a strategic framework for investment in water production and distribution, as well as wastewater treatment, with the aim of meeting the increasing demand for this resource from the population.

Approved by the Cabinet, some of the projects in the plan include the regeneration of the water network, the renovation of several reservoirs, the upgrading of several reverse osmosis plants, the treatment of drainage and the introduction of micro tunnelling, amongst others.

Amongst other set goals for the plan, there is a target to increase new water production to 109 cubic kilometre per three days, from the current 75 cubic kilometre, and the harmonisation of water quality.

The minister said that despite tap water being treated and in line with EU regulations of which standards make the water potable, there is still a problem with how it tastes in several localities. She said that the further a household is from a reverse osmosis the worse the water quality is.

In efforts to address this, Water Services Corporation CEO Karl Cilia explained that the plan is to mix every water source in the Ta Qali water reservoir before it is redistributed to households.

“In compliance with EU regulations, the new national investment plan strengthens our water infrastructure and paves the way for a more efficient and sustainable water management system, with more environmental benefits. This is a commitment to the health, environment, and the well-being of future generations of our country,” said Dalli.

Cilia said that the Corporation is at a crucial moment in the management of water resources. “This plan is a proactive demonstration of our dedication to ensuring the highest standards of water quality and service. Our emphasis on technology and innovation will lead us to unprecedented levels of efficiency and sustainability.”

The 10-year plan ensures Malta’s alignment with European standards in water management and promotes the concept of a circular economy by encouraging resource recovery and the reuse of reclaimed water. With the support of the Ministry, the Corporation secured €126 million in EU funds to finance part of this plan.

The year 2023 was a significant year for the Water Services Corporation, marked by a series of record achievements that highlight its central role in the management and sustainability of Malta’s water resources, it was said. These include a record reduction in Non-Revenue Water (water produced but lost before reaching the consumer), year after year, with a further reduction of 3.5% compared to the previous record year. Network efficiency has now reached 72.7%, up from 52% in 2011. There was also a record reduction in water leakage, with an Infrastructure Leakage Index of only 9.5% of water production compared to 13% in 2013. There was also a record resolution and payment of cases of excessive water use, reducing them to less than 100 cases. They also said that there was a record production of 36.7 million cubic meters of water, the highest in the last 20 years, to meet the growing demands of the economy and the tourism sector. In addition, there was also a record supply of 1.6 million cubic meters of new water to the agricultural community, and there were unprecedented low levels of chlorine in water, with a 30% reduction in 2023, they said.

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Addressing the media, Ellul said that the aim of the new regulations for temporary work agencies is to provide a legal robust framework that assures “that this practice is done in accordance with laws regulating employment, including employees work conditions and the ethical recruitment”.

It was explained that this law will come into force on the 1 of April of next year and that the applications from future regulated temporary workers agencies will start being received as from 1 January.

All companies need to have their licence by June of 2024.

Lawyers explained that this new law promotes visibility and monitoring on all operators within the sector. Additionally, it aims to assure that only non-European workers that the country needs are brought over, whilst safeguarding their wellbeing by criminalising abuses.

As a direct consequence, companies that do not have or violate this licence will be disqualified from public procurement contracts and will not be authorised to bring in workers from outside the European Union.

Moreover, agencies that violate immigration laws or labour laws and are not compliant will have their licences revoked.

What do these new regulations say?

Employment agencies need to apply for a licence every year (€3,000 for the first time and €1,500 with each renewal).

There is an obligation for each agency to have a competent person who must be Maltese or European and have a number of years of experience and/or an HR degree.

Due diligence will be carried out, with the assistance of the Police, on applicants, the competent person, and company directors before the licence is issued.

The agency must operate from an approved fund according to the law;

The agency must have a bank guarantee (not applicable to agencies offering only recruitment) of €20,000 + 2% of the payroll. This is intended to ensure compliance by any employment agency during the licence term and to secure payment for employees who end up without a job.

Agencies that lose their licence will be blacklisted and will not be eligible to bid for government tenders or recruit workers from outside the EU.

Temping agents cannot request any payment from employees to come to Malta. They cannot employ individuals when they are aware that these individuals are paying money to guarantee and get the same job.

Agency Identita will not accept any applications for a single permit from an agency that does not have a licence, the regulations say.

There will be ‘harsh’ fines and licence revocation for those who do not comply with licence regulations or operate without one. Immediate license suspension will occur in certain severe instances.

Repeat offenders will have their licences revoked. Fines range from €5,000 to €30,000 for those who fail to comply with legal measures.

It will not be possible for individuals or companies to use the services of agencies that are not authorized to do this work.

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He said that for 2023, the growth rate stands at 3.9% whereas for the next year it is expected to go up to 4.4%. 

The minister said that in comparison to other big countries such as Germany, where the economy is expected to grow by just 1.5% for next year, Malta’s growth rate has been possible thanks to many factors such as the ongoing subsidies on energy and fuel prices, which are currently serving as a cushion for inflation. 

Commenting on this, he said that these government subsidies should not be taken for granted, as if “the government were to decide to remove them”, everyone would feel its repercussions, especially on electricity bills. 

On the same theme, Caruana also said that the fuel costs are still very high and if the government were to remove the current subsidy “there are going to be ramifications.” 

“If we decided to stop the subsidy, you would see the price at the petrol pump go up by 45 cents immediately”. 

He said that to cover the high spikes in prices of fuel and energy, the country has spent a total 1.5% of its total gross domestic product for this year. For 2024 it is planning to spend a total of 1.7% of the GDP which amounts to an estimated €100 million. 

However, commenting in general he said that these government initiatives cannot be “normalised.” 

He said that in 2022, the increase in expenditure reflected the government subsidies on energy, food and Covid-19 support measures, which altogether amounted to 7.2% of the total expenditure for the year. 

However he added that now the country needs to change “its attitude with substantial effort”, to combat these “consequences brought by the Ukraine war.” 

The minister said that keeping this number is dependent on the employment sector as “it is the motor of it all.” 

He said that currently Malta is in third place on a European level when it comes to employment rates. 

Presented figures show that the labour market participation rate increased to 80% in 2022, which even surpassed the average European rates. 

Commenting on the country’s deficit, Caruana said that despite the several government subsidies, Malta’s deficit percentage decreased from its 2021 7.8% to 5.8% in 2022. 

For the upcoming year, Caruana said that in order to adhere with EU fiscal targets, the country is planning to decrease its deficit to 4.5%. 

Despite this deficit target the minister said that it the government with its “prudent spending” needs to ascertain that when another economic ‘attack’ hits the country it is “financially stable enough to meet it.” 

On debt, Caruana said that nearly all European member states registered a decrease in debt gross domestic output (GDO) ratio over previous years. However, when it comes to European average Malta has managed to keep its percentage ration below the average 60% standing at 53.2% for 2023. Despite this this number is expected to increase by a little over 1% (to 54.5%) for the upcoming year. 

Also present for the launch were several stakeholders who raised several other questions especially concerning the cost-of-living adjustment measures for the upcoming budget. 

In its pre-budget document, on Tuesday the Chamber of Commerce proposed for there to be no tax on the COLA adjustment. 

When asked about this, the minister said that if he were not a politician he would immediately say yes, however “as a politician I have responsibilities and the 4.5% deficit target needs to be reached,” whilst also not excluding it as a possibility as the budget document is still not ready. 

Moreover, the minister also confirmed that the upcoming COLA increase will be higher than last year’s, which stood at €9.90. He also warned that the increase is to be paid in full by the employer and that “if any proposal reaches my desk for government to absorb part of this increase it will simply join other papers in the in-tray and remain there.” 

Although revealing almost nothing from the upcoming budget document, Caruana said the upcoming budget had to be also taken on a more ‘global’ note. 

“The perspective along the years started taking a new facade and from this year continuing on last year, it is going to change because it is not just about changing the money,” he said. 

“Microeconomic matters and politics have changed the scene a lot, and as a Minister for Finance I have been focusing along the last few weeks on how this country is going to position itself when compared to other countries on several themes,” he continued.

In giving a wider explanation, he said that the European Union is planning to increase its member states, “ending up with more than 30 member states, by the end of the decade” with a focus on the green economy and energy. 

As an example for how rapidly things are changing, Caruana said that unlike previous years, where agreement between members on EU negotiations took several years, “this year in a few months we managed to agree on the new rules governing the fiscal sector.” 

“We have to start thinking that the Budget is not only going to affect just us, but we need to prepare it for the upcoming challenges,” he said.

The post Malta is set to keep long term economic growth trend of 4% – Finance Minister first appeared on The Malta Business Weekly.

The Chamber was reacting to warnings by Finance Minister Clyde Caruana that inflation is here to stay for an indefinite period.

When he addressed the Malta Council for Economic and Social Development a few days ago, Caruana said that the inflation rate, which stands around 5-6%, will take a long time to return to the normal 1-2%.

The Chamber was asked what the government could do to shorten the period of time for inflation to be brought down to more manageable rates. The government, the Chamber said, has limited its intervention to subsidising energy and some basic inputs, such as flour. There has been no intervention on transport costs to reduce imported inflation, no tweaking of the cost of living adjustment mechanism to avoid a wage-inflation spiral and no attempt to stimulate increases in interest rates or other policy measures that could dampen demand. These can all be done to mitigate inflation, the Chamber said.

“But the policy direction seems to be to let inflation persist to avoid the risk of any potential contraction in demand. And because inflation is also influenced by expectations, the more we say that we have to tolerate a higher level of inflation to continue growing the economy, the more likely it is that we will have higher levels of inflation irrespective of whether the economy grows as predicted or not,” the Chamber added.

The biggest risk of this strategy is that we become uncompetitive in the long-run. While other countries continue to have similar rates of inflation, we can sustain the inflationary pressure, but the moment other economies respond to higher interest rates and manage to bring their inflation under control, we have no levers available to do the same. So it is imperative that we do all we can to remain below the inflation rate of competitor countries, the Chamber said.

The government can be proactive in mitigation inflation without running the risk of slowing down the economy. Such initiatives should centre around improving efficiency and productivity in the public sector, incentivising work, shifting government spending from recurrent expenditure to investment in infrastructure that can reduce costs and improve the efficiency and productivity of the whole economy, and ensuring that public funds are wisely spent.

Specifically, the Chamber said that the government should:

i)          Curb superficial recruitment in the public sector and make sure that everyone who has a job in the public sector is doing something that is useful, is adequately qualified to do it, is doing it for the number of hours for which he/she is paid to do it and is being paid at market rates not at a premium;

ii)         Revise tax bands to provide for an increase in the disposable incomes of low to medium earners without fuelling further increases in labour costs;

iii)        Make sure that there is no systematic abuse of social benefits;

iii)        Invest in technology to improve public service delivery and enforcement, including tax compliance;

iv)        Implement measures that will reduce the number of cars on the road and reduce congestion, such as introducing on-street parking fees in congested areas to encourage use of public transport and shared mobility;

v)         Upgrade the energy infrastructure to reduce costs related to disruption of business, loss of perishable goods and damage to equipment due to power cuts;

vi)        Ensure that all public procurement is carried out transparently and diligently, both during the tendering stage as well as during delivery and servicing, to guarantee the best value for taxpayer money and to promote businesses that provide quality goods and services at a competitive price;

vii)       Avoid providing services that can be provided efficiently, reliably and competitively by the private sector, and intervene only where the market fails to provide adequately for the social, economic and infrastructural needs of the country.

TMIS also reached out to the General Workers Union for its input on the subject.

In its answers to the same question, the GWU said that reducing inflation and bringing it back to a target range of 1-2% is a complex economic challenge that requires a combination of fiscal, monetary and structural policies.

The GWU also pointed out that “the government, like any other government, can take certain action to help decrease the recovery time for inflation to return to the desired level”, adding that given Malta’s small size and open economy, international factors can significantly impact the rise in the cost of living.

At some of its proposals, the GWU said that the government can engage in international cooperation and trade agreements which in turn can help mitigate external inflationary pressures.

It noted that the Central Bank of Malta can use its monetary policy tools to control inflation, such as adjusting interest rates.

“If inflation is above the target range, the Central Bank can raise interest rates to discourage borrowing and spending, which can help lower demand-pull inflation,” the GWU said.

Moreover, it said that the government can use fiscal policy to influence inflation as well. For instance, continue to absorb the difference in prices in energy, fuel and cereals prices.

“This has helped immensely families and business and it was part of the accelerated recovery of the Maltese economy,” it said.

Last year, this was the GWU’s main proposal and this year the union is also proposing that this policy is extended to next year.

In other suggestions, the union said that the government may also consider price controls on essential goods through indirect policies to prevent excessive price increases.

“In our pre-budget document we proposed that the government introduces incentives for the set-up of price comparison websites. We also proposed soft loans for business so that they can buy for a whole year and in return they must keep prices stable. From an employee’s point of view, the main tool to fight inflation is the cost of living adjustment.”

The post Long-term high inflation could make Malta uncompetitive – Chamber of Commerce first appeared on The Malta Business Weekly.

In a press conference on Thursday, the minister said that the primary vision for this policy is to offer energy sources which are affordable, clean, diversified, while also energy provision for the country.

She said that this is the first time that a public consultation is being done on such a policy, all in efforts to promote the private investor’s inclusion, as it promotes transparency.

“This step is a good one for the politics of clean energy of the country,” she said.

Dalli urged anyone who is interested to be active in the consultation process to do so in the coming four weeks, as the consultation phase closes at the end of September.

She said that the policy will be updated according to the comments received through the consultation.

On his behalf, and in giving a technical briefing head of the Water Services Agency Sandro Lauri, said that this strategy complements the government’s commitment towards a cleaner energy system.

He said that this strategy is a low carbon development strategy, a measure which was also promised in the electoral manifesto. This policy also promises to work with the private sector for the investment in a floating wind and solar system.

Lauri explained that Malta’s surrounding waters have been identified as an investment opportunity for the renewable energy sector, as it was identified that investing in more solar panels on land would be too costly.

He said that currently only 10% of all the country’s energy usage is coming from solar panels, whilst the remaining 90% is dependent on fossil fuels.

Apart from being costly, solar panels take up space, especially on private roof tops and are only providing a clean energy source alternative during the day.

He said that works on the identified new opportunities which Malta’s surrounding waters bring have started last year, wherein the government has done a market consultation process to seek what are the interest levels in this new sector.

In what he described as an “ad hoc policy”, he said that from the analysis and research done, the future renewable energy sources have been planned in areas which minimise the impact on other ongoing maritime projects.

In total there have been identified six key areas, which have been purposefully planned to be 25 nautical miles far from land, where there is minimal nautical activity.

He said that although “such projects will be floating” it does not mean that they can be done everywhere.

Moreover, the areas have also been identified where there is prominent wind, to make the best use out of this new technology.

On the consent needed for such offshore investments, Lauri said that there will be a one stop shop which will cater for all the investor’s queries and permissions needed.

Lauri also said that on its end Enemalta has already identified three sites for the connection of the grid, which are Maghtab, Marsaskala and Delimara.

On the price selling point, the minister said that the government is looking at the possibility of acquiring it through what are known as Performance based agreements, which ultimately will be bought by Enemalta.

One of the press conference attendees remarked that he is in the know of an English company which is already in speaking terms with entities to invest in the offshore energy, and asked how the ministry is going to ensure that small companies are also included.

On her end Dalli denied such a claim and said that the policy is still in its initial stages and that she is not informed of such “talks happening.”

Asked on the timeframe for when Malta will be seeing its first offshore investment, she said that it is heavily dependent on the expression of interest from private investors in the coming months. Moreover, she said that such major projects take up several years, which sometimes are also split into several stages.

The post Six areas identified for offshore renewable energy projects, as plan is launched for consultation first appeared on The Malta Business Weekly.

The current laws on masons are around 140 years and “are in need of an update”, the minister said, adding that the future laws will allow for a “more legally structured licence”.

Following the public consultation for the licensing of contractors, which entered into force via a legal notice last week, the minister said that it only made sense that there is a reform also in the licensing of masons, as the two professions go hand in hand.

Present for the press conference was also Building and Construction Authority CEO Jesmond Muscat.

In giving a breakdown of the proposed license and objectives, Muscat said that these new laws will give a more transparent system on how one should apply for the licence, what qualifications one must have, or what kind of information one must have to appear before the board in order to be granted the licence.

The laws will also provide a better licensing process that reflects the current scenario of building activity which have well evolved since the original masons licence has been in place, and define the criteria and necessary skills required by a person to operate as a mason. It also covers future masons, training obligations to ensure that new licence holders and current licence holders continue to improve their skills and are made aware of best practices and new building technologies.

Furthermore, the laws also shed light on new enforcements to take place when masons do not abide with the licensing regime.

As per consulatation paper responsibilities of the masons wiill be to:

•             Abide by the conditions of the licence and any orders, directions or requirements which may be imposed by the Authority;

•             Ensure that the execution of any works conforms with the practices, guidelines and regulations pertaining to the trade of mason that may be issued by the Authority;

•             Abide and conduct any building works according to the specifications issued by the perit in charge of the project;

•             Be present on the construction site throughout the duration of the building when the licensed mason is assigned to supervise the construction works and be responsible for works executed by persons engaged by the licensed builder.

Moreover, transitory measures will also be provided for those who are in possession of a licence under the current regulations which are still valid by the the end of the year 2023 or the year 2024. These licences will remain valid under the new licensing regulations but will be renewed under the new procedures.

These new licences will be issued by a newly established masons licensing committee, whoch will be composed of 5 members, with 2 members shall be architects, one of whom having practiced the profession for at least 10 years.

Other functions of the future committee constitute the implementation of BCA board including the organisation of the examination; and the drawing and presentation of  reports to the BCA Board concerning laws and regulations and Licensing process, such as holding consistent refresher courses.

In order to obtain a licence future masons will need to have a basic knowledge in geometry, health and safety on the place of work and in sound knowledge of the local building technology.

Eligibility for applicants is as follows:

•      Applicant who has reached the age of eighteen and be in possession of a certificate of competence as follows:

a) Mason’s qualification or an equivalent certification, or;

b) An award authorised by the National Commission for Further and Higher Education, or;

c) Proof of any other qualifciations in the relevant field of practice recognised by the MQRIC.

•      In case the applicant does not have any of the qualifications or certification mentioned above, the Committee may consider the knowledge, competence or experience of the applicant in stone works (masonry work) as a comparable qualification and this through an examination in theory and practice.

•      Applicant may be requested to attend courses when the Authority considers that new practices and competencies and regulations have been introduced.

•      Refresher courses will be organized for all masons who will be applying for the Mason’s Licence.

The post Public consultation on licensing of stone masons launched first appeared on The Malta Business Weekly.

In an interview with The Malta Independent on Sunday, Muscat said that a survey carried out among the association members, which was published earlier this month, established that tourism operators are concerned with overdevelopment in Gozo.

Apart from having to inform their guests about inconveniences such projects taking place nearby could cause, business owners believe that this is going to change the Gozitan characteristics for which the island is known and marketed for, he said.

“We can’t let Gozo become like Malta,” he added, “as this will not only affect the island visually but will also have a negative impact on the experience of the tourist.”

Over the past years, Gozo has been at the centre of controversy as development projects have continued to eat into the land. Places like Xlendi and Marsalforn have lost their uniqueness and picturesque qualities as more and more buildings have been constructed in what were once quaint summer villages. And, as more years go by, this development is spreading to others areas on the island.

In the interview, Muscat said that sectors involved in the tourism sector should refrain from increasing their prices across the board; instead, price adjustments should reflect the direct impact that inflation has on the specific service or product.

Muscat was speaking to The Malta Independent on Sunday on the association’s recommendations to businesses in order for Gozo to remain a competitive tourist destination.

He said that this summer is the first full summer without restrictions since the Covid-19 pandemic broke three years ago.

“Thus, we are expecting around the same influx of tourists we had pre-pandemic,” he said, adding that one of the main contributing factors for the island’s popularity will be its usual distinctiveness.

He was echoing what was said by Gozo Minister Clint Camilleri last week in an interview with this newsroom. Camilleri said that Gozo “is expecting a strong summer”.

Muscat said that in order to remain competitive, apart from businesses controlling their pricing, the connectivity between the islands should continue to be assisted by government. Thus, he positively welcomed the idea that the two companies which offered a fast ferry service has now merged into one. He said that apart from removing negative competitive factors such as pricing and scheduling, the service is now more financially sustainable, through government financial assistance.

Moreover, he said that the company should target to offer a reliable service from Valletta, such as the one currently offered by the Gozo Channel company from Cirkewwa, which he noted offers uninterrupted service and only stops operating during some hours in severe weather conditions.

According to NSO statistics, the number of passengers using the Gozo Channel service has so far increased when compared to 2022. The NSO said last April that the total number of vehicles and passengers travelling between Malta and Gozo in the first quarter of the year had increased significantly, with 1,254,008 passengers being carried on 8,742 trips.

Commenting on this, Muscat said that it must be kept in mind that the number of commuters is mostly made up of people who travel between the two islands for work or business purposes, which means that the number of travelling passengers is not necessarily a gauge that can be used to calculate how many tourists visit Gozo for a day or those who stay over for a night or more.

Muscat said that the idea to have an airstrip in Gozo, apart from enhancing tourism opportunities, will open up new job and business opportunities for the island.

Zeroing on tourism opportunities, he said that apart from bringing Gozo closer to the Luqa airport, thus facilitating and easing the tourist transfer to Gozo as well as increasing the island’s competitive level, the airstrip can also be an opportunity to connect Gozo directly with neighbouring islands and countries in the Mediterranean.

He said that the initial service, which is to offer internal flights to create a link between the Islands, should be reliable and also affordable in efforts to attract the consumers, both foreign and local.

Remaining on the subject of connectivity, Muscat re-confirmed GTA’s position on the government proposed tunnel between the two islands, saying that the association is still against the project as proposed.

The government has said recently that the building of the tunnel to Gozo is not a priority for the time being. The project has been on the cards for decades, but although studies have been made, no administration has as yet come forward with a concrete plan to establish the connection.

GTA believes that the islands would benefit more from a connecting railway system that would only carry people rather than vehicles.

Muscat said that an under-seabed road would worsen the traffic situation, especially in summer.

“There are already traffic problems in Gozo during the summer months as a result of the number of vehicles crossing the channel,” he said.

Muscat said that although the usual tourist resorts such as Xlendi and Marsalforn are the first to fill up, for the past recent years tourists have moved to other areas all over the island. Apart from the traditional hotels, Gozo is now offering accommodations such as holiday homes, flats, farmhouses, bed and breakfast and houses of character.

Muscat was also asked about pre-budget proposals.

He said that the GTA will be proposing a set of measures focusing on the marketing of the island as an all-year-round tourist destination, human resources and the environment.

He said that an industry with a work force made up of mostly foreign workers (70%) should still try to give the full authentic Gozitan experience. GTA will be proposing to the government that foreigners working in Gozo, not only in the catering industry, should be given courses that enable them to integrate themselves more in the Gozitan way of life.

On marketing strategies, Muscat said that GTA is proposing schemes for tourists to come to the island all year round, but especially during the low season.

The post ‘We can’t let Gozo become like Malta’ – GTA CEO first appeared on The Malta Business Weekly.

The strength of common values should lead Europe towards more cooperation and  opportunities for the “benefit of our citizens”.

The Prime Minister said that this is a time where global scenario cross roads  have changed significantly since the last CELAC Summit that took place eight years ago, as new challenges emerge. Key to more robust and resilient societies and economies is the balance between sustainability, economic resilience, and competitiveness, he said.

The summit was attended by 27 Leaders of the countries of the European Union with Heads of Government or Representatives of 33 states of Latin America and the Caribbean.

During this Summit, Abela said that the strength of ties between the countries, both in bilateral and inter-regional relations, and the partnerships in areas of common interest should lead to more opportunities for the mutual benefit of EU countries and other states.

As for open trade, Abela said that it presents strong potential to strengthen commercial relations and create new jobs, with Malta also supporting the work of the European Union to strengthen these relations.

Abela also said that growth and economic recovery must ensure that they do not leave unwanted effects on the environment by contributing to climate change, and that Malta as an island has specific realities that must be safeguarded.

The consequences of climate change were also on Malta’s agenda in the Presidency of the United Nations Security Council as sustainability is crucial for the green and digital transition, and this renewed partnership ensures a greater effort in favour of these transitions, he said. Abela said that this is also in line with the priorities of the Maltese Government that while the economic success achieved in recent years was and is still the foundation of positive change in every area of life, “we are investing in a brighter Malta with an investment in the environment of our country, whilst keeping  the quality of life at the centre of our work”.

The Prime Minister concluded that this Summit of geo-political importance as it shows how a strong relationship between countries leads to more stability, peace and also addresses global challenges such as climate change and environmental protection.

The post Watch: Prioritizing sustainability and economic resilience – PM’s focus at Brussels summit first appeared on The Malta Business Weekly.