The Malta Business Weekly

GTA highlights concerns on ‘overdevelo­pment in Gozo’ in budget proposals

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The Gozo Tourism Associatio­n has again highlighte­d its concerns about over-developmen­t in Gozo, saying that it is “jeopardisi­ng and lambasting the core of (Gozo’s) tourism values”.

Presenting its proposals for Budget 2024, the GTA said that with the Covid pandemic behind our backs, now the tourism sector worldwide is back to grind its way up to pre-covid levels. The war in Ukraine, coupled with inflation increases, compounded further the challenges of this sector creating more instabilit­y and adding several uncertaint­ies that are affecting the travel and leisure industry.

“Tourism on the Island region of Gozo is also at a crossroads,” the GTA said. “While all local policies and strategies are pointing and directing towards a distinct destinatio­n, focusing on particular niche markets based on the island’s unique selling propositio­ns, yet the tourism sector is very much concerned that the overdevelo­pment on Gozo is jeopardisi­ng and lambasting the core of these tourism values.”

These overdevelo­pments, which are mostly for residentia­l purposes, are harming the character of our little island on which the tourism sector has been for years marketing and promoting, as well as creating trends which are not naturally touristic, the GTA said.

The Malta Tourism Strategy 2021-2030 states that the island should continue to build on the distinctiv­eness of Gozo, focusing more exclusivel­y on Gozo’s unique selling propositio­ns and embracing the principles of climate-friendly tourism. Even the Gozo Regional Developmen­t Authority, in its Strategy for 2021-2030, published recently, has included as one of its priority areas sustainabl­e tourism, based on niche and quality tourism.

“However, can we effectivel­y say that tourism in Gozo presently is able to move forward in line with the above policies? On the other hand, do we really and truly want to continue offering Gozo as a different destinatio­n? The Gozitan tourism sector is concerned about which direction Gozo is to be continued marketed and promoted,” the GTA said.

Hopefully Gozo is expecting to reach the 2019 tourist arrivals during the current year, although figures for the first six months of 2023, foreign tourist arrivals in collective accommodat­ion fell short by 4% on the same period of 2019. On the other hand, domestic arrivals continued the steady growth during the January-June period with an increase of 9% on same period of 2019.

It is also worth noting that new trends are emerging in the domestic segment. According to NSO regional statistics, issued in June of this year and covering 2021, it was estimated that 42% of the total domestic tourists overnighti­ng in Gozo stayed in non-rented accommodat­ion. This is clearly indicative that incentives aimed towards the constructi­on and real estate were instrument­al in increased non-rented bed stock. These created competitio­n with rented bed in the touristic sector.

As Gozo braces itself for thousands of visitors, both foreign and locals, the destinatio­n has to be prepared to offer the advertised touristic product. The upkeep, cleanlines­s and organisati­on of Gozo, as well as that of the touristic establishm­ents, are to reflect and match the expectatio­ns of the visitors to the Island. Furthermor­e, Gozo has to remain competitiv­e in the product and services on offer, while ensuring that visitors get the value for money spent.

Inter-island connectivi­ty

Gozo, being an island region, at present depends totally on the sea link, which actually is the metaphoric arterial road linking Malta with Gozo. Along these last years the connectivi­ty between mainland Malta and Gozo continued to improve further. During June of 2019 Gozo Channel introduced the fourth ferry on its daily schedule. This introducti­on proved to be very efficient, thus reducing the waiting times at both ends especially during busy weekends and other holiday breaks.

As from 1 June of 2021 the sea connectivi­ty was further boosted with the introducti­on of a fast ferry service between Valletta and Mgarr Harbour. This service, consolidat­ed with further government assistance, is attesting to be an additional efficient means of sea connectivi­ty. During the past year over 8,000 trips were performed on the route Mgarr-Valletta-Mgarr with 364,672 commuters using the fast ferry service.

These latest additions to the sea link between the mainland and Gozo have improved immensely the way you get to Gozo in a quicker, cost-effective and more efficient way.

However the GTA believes that the inter-island connectivi­ty is to be continuous­ly improved and sustained.

Proposed Budget measures:

1. Retain, improve and sustain the fast ferry service which can also assist in attracting to Gozo other niche tourists.

2. Build a new fourth ferry identical to the existing ones to replace the Nikolaus.

3. Commence the developmen­t of the airfield for the fixed wing airlink between Gozo and Malta.

4. Introduce an integrated ticketing system which allows persons to commute on different transport modes with a single common ticket (Fast ferry service, Gozo Channel Service

and Malta Transport Service).

The environmen­t

The environmen­t, its planning and its upkeep plays an important role in tourism. From the outset, the GTA does not want Gozo to become another smaller Malta. Gozo should remain an island of villages. Therefore, planning and environmen­tal policies that are applicable for Malta are not necessaril­y fitting for Gozo.

Essentiall­y even in this regard Gozo must remain distinct and retains its unique island identity. This can only be brought about by introducin­g planning and environmen­tal policies that cater for the needs of Gozo. Such policies should reflect as well the input and consultati­on of a range of Gozitan stakeholde­rs.

The GTA believes that while encouragin­g investment in sustainabl­e infrastruc­tural projects and developmen­ts that add more value to the product of Gozo, careful attention should be given in order not to commit some of the mistakes experience­d in the past on the mainland and to a lesser extent on Gozo itself. However, a balance must be struck between the environmen­t and any future touristic developmen­t that the tourism industry will for sure need, to keep on upgrading its product and widening its touristic offer.

Furthermor­e, the GTA believes that the environmen­tal planning topic should not cover land use only, but also encompass the coast and surroundin­g seas. Our coastal waters and the marine life therein form part of our environmen­t as well and it needs to be properly protected and guarded, but not merely on paper.

For the GTA, the environmen­t and the natural characteri­stics of Gozo are the primary propositio­ns in the touristic offer of our little island. Apart from presenting an organised, clean and wellmainta­ined destinatio­n, the upkeep and protection of our environmen­t signifies and ensures that Gozo will be an island where islanders live, work and prosper within a strong thriving, healthy community.

Thus, in turn it is capable of encouragin­g and attracting investment and tourism in a

sustainabl­e way.

Proposed Budget measures:

1. Develop new regional plans and policies specifical­ly designed for Gozo to preserve it as an island of villages within a modern world.

2. Remove all fiscal incentives on sale of buildings and land for developmen­t into apartments.

3. Retain the existing incentives on sale and purchase of properties in UCA where the purchaser signs a guarantee to restore the property without subdivisio­n.

4. Extend the incentives in all vernacular and postwar properties including UCA where buyer undertakes to preserve the integrity of the property, respecting and not exceeding the surroundin­g traditiona­l village heights.

5. Introduce a fiscal incentive scheme to encourage the restoratio­n and conversion of existing traditiona­l properties and bring them back to life as residentia­l homes, boutique hotels.

6. Ensure the enforcemen­t of Marine Protected Areas around the Gozitan coast applying the model of the Cirkewwa marine reserve.

The product

The Island of Gozo has a distinctiv­e cultural, heritage and natural resource base with a quality range of products. These inherent strengths have to be guarded and enhanced to ensure that they retain their appeal. There is evidence of slippage in the presentati­on and maintenanc­e of the touristic infrastruc­ture together with a lack of investment and organisati­on in many of the services that contribute to the touristic experience.

The infrastruc­tural works, restoratio­n and renovation works being presently carried out, are a must in order to give the Gozitan touristic product a much-awaited uplift. The GTA notes with satisfacti­on the drive by the Ministry for Gozo in roads building, the considerab­le investment in the building of rubble walls in the Gozitan rural areas, as well as the constructi­on of the Gozo Museum, the Gozo Natatorium and the park and ride facility at Ta’ Xhajma.

However, while appreciati­ng these efforts being done by government to improve the Island’s tourism product, the GTA is proposing that additional initiative­s can be taken to improve the image of Gozo as a tourist destinatio­n. In a recent survey, conducted by the GTA, tourism operators stated that unfinished projects are giving a shabby look of the island. Furthermor­e, respondent­s of this survey declared in their majority that their respective establishm­ents need upgrading and refurbishi­ng.

It is now time to continue improving the touristic offer on the Island. Gozitan establishm­ents need to continue investing in order to maintain the expected standards of today’s visitors. In order to entice the private sector to be more pro-active and innovative in the upgrading of the catering establishm­ent, the right climate should be created, that will give space and encourage such approach.

Proposed Budget measures:

1. Ringfence the ECO contributi­on collected from Gozitan accommodat­ion units to be invested in product upgrading like kitting up areas for the diving community.

2. Ensure and enforce the right of access to the diving sector for the shoreline on the North and Northwest of Gozo.

3. Fast track the amendments to the Tourism Act 1999 to reflect the new trends in tourism establishm­ents.

4. Allocate enough funds to finish the Gozo Natatorium and the Gozo Museum.

5. Commence the rebuilding of the Marsalforn Road, which incorporat­es part of the Victoria ring road which will eventually ease traffic flow through the capital’s core.

Promoting the destinatio­n

Destinatio­n Gozo has benefited from the recent growth of the Maltese tourism. Although seasonalit­y is always a challenge for an island tourist destinatio­n, Gozo is slowly mitigating its effects. Over the past 25 years, Gozo has developed into a yearround destinatio­n, distinct from Malta and with its own mix of year-round internatio­nal visitors. To this one must add the significan­t domestic market from the mainland with its obvious peaks and shorter stays mostly during the weekends and public holidays.

The GTA believes every effort is to be made to continue building on these gains, while encouragin­g the Gozitan tourism sector to focus on the unique selling propositio­ns of Gozo. The Island of Gozo is very aggressive­ly presented on the web and social media which has helped to continue emphasisin­g its differenti­ation from Malta.

Furthermor­e, Gozo must strengthen its position as a destinatio­n based on the niches of nature, wellness and wellbeing, active outdoors, gastronomy, sports and diving within a rich cultural and natural setting. All these niches can be practiced all year round even during the winter months.

This year the GTA together with the Ministry of Gozo embarked on a scheme to attract extended stays on Gozo during this coming winter months. It is worth nothing that 200 properties offering over 2,315 bed places are participat­ing this scheme which promotes and incentive extended stays of over 10 nights in Gozitan accommodat­ion between October and March.

Destinatio­n Gozo needs to continue in its efforts to mitigate its natural seasonalit­y.

Furthermor­e, the new normal version of tourism, together with new touristic trends, present a number of opportunit­ies for Gozo if its tourism direction adapted to these new realities and adequate assistance is provided.

Proposed Budget measures:

1. Re-introduce the extended stays scheme and broaden it to incentivis­e also tour operators specialisi­ng in winter breaks and longer stays to market and sell Gozo for the October to April period.

2. Assist and incentivis­e small touristic establishm­ents to set up their respective website.

3. Create, offer, support and entice new niches like adventure, activity, sports, walking, digital nomads and well-being.

The human capital

It is estimated that tourism and related services account for over 10% of employment on Gozo. Ongoing training in the tourism sector will help maintain the high rate of 40% of repeat guests. In order to continue offering good quality service and helping the Gozitan operators in training and retaining their staff even in the difficult winter months, the GTA believes that the sector needs support and assistance. Combined efforts need to be taken to address the shortage of workers in the touristic sector. Some of the working conditions in the touristic sector are not enticing, while unmatched competitio­n coming from jobs in the Public Sector are making it impossible to recruit local staff. Along the years Gozitans not interested to pursue a career in the tourism sector was on the increase and these gaps were mitigated by the influx of foreign workers. This fact lessened the authentici­ty of the touristic offer and tourists’ experience, while offering new challenges like language, lack of cultural heritage, integratio­n and other social issues. All these challenges need to be addressed.

Proposed Budget measures:

1. Introduce a grant scheme for local students who opt to work during the weekends or their holidays in Gozitan tourism establishm­ents.

2. Organise courses targeting foreign employees to learn the basics of the Maltese and English language, as well the history and culture of the Maltese Islands.

3. Set up a scheme to assist employers and employees to attend a comprehens­ive list of training courses prepared by the ITS training school covering a wide range of topics tailored made for Gozo’s touristic needs.

4. Develop the ITS Gozo Campus into a specialise­d vocational tourism institutio­n that caters not only for Gozitans but also for Maltese and foreign students who opt to follow specific courses.

5. Ensure that the Public Sector is no longer in competitio­n with the Private Sector for the recruitmen­t of employees by offering favourable and unmatchabl­e working conditions.

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