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Rethinking our Economy: The Impact of
COVID-19 on the Gozitan economy and the
Way Forward
Daniel Borg
Chief Executive Officer
Standing Committee on Gozo Affairs – 16 September 2020
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THE WAY FORWARD 2
“At the same time I hope that, with the converging commitment
of all political and economic leaders, work might resume:
families and society cannot continue without work . . . It is and
will be a problem in the aftermath of the pandemic: poverty
and lack of work. A lot of solidarity and creativity will be needed
to resolve this problem”
Pope Francis (2020), Angelus Saint Peter Square, Sunday 2 August 2020
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GOZO’S UNDERLYING ECONOMIC STRUCTURE
3
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GOZO’S UNDERLYING ECONOMIC STRUCTURE 4
64%
Employment
In 2018, 64% of the people in full-
time employment in Gozo were in
the private sector, while 36 % were
in the public sector
Business Units
60.3% of the business units in Gozo
employed between 1 to 9 persons
(2019)
64%
GDP per capita
GDP per capita in Gozo at Euro
15,997 is 64 % of the national
economy (2018)
60.3%
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Upcoming Deposits
GOZO’S UNDERLYING ECONOMIC STRUCTURE 5
9.8%
Malta: 10.29%
7.5%
Malta: 3.5%
Contribution of Construction to
Gozo’s Regional GVA -Average Rate of Growth – GDP – Gozo
2014 - 2018
Tourism
Same day visitors (2019)
Foreign Inbound Tourists (2019)
Domestic Tourists (2019)
50%
215,272
180,979
1,346,550
8.9%
Malta: 4.6%
Contribution of Real Estate
Activities to Gozo’s Regional GVA -
Estimated Contribution of Gozo’ s GDP
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CURRENT BUSINESS SENTIMENT
6
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WHAT IS THE SECTOR IN WHICH YOU ARE OPERATING?
7
24% Tourism
18% Importing/Wholesaling/Retailing
18% Financial/Insurance/Legal/Health & other
Professional Services
11%
Manufacturing/
Exporting
7% Construction
5% Transport
2% Crafts
2% Agriculture/Fishing
13% Others
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HOW HAS THE OUTBREAK OF THE COVID 19 AFFECTED GOZITAN BUSINESS?
8
6.70% 4.40%
20%22.20%
46.70%
1 (No Effect)
2
3
4
5 (Very
Negative)
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THE IMPACT OF THE COVID 19 WAGE SUPPLEMENT ON GOZITAN BUSINESSES
9
57.80%
11.10%
31.10%
Positive
Negligible or
minimal impact
My business was
not entitled to
benefit from this
incentive
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THE IMPACT OF THE RENT REFUND SCHEME ON GOZITAN BUSINESSES
10
22.20%
13.30%
64.40%
Positive
Negligible or
minimal impact
My business was
not entitled to
benefit from this
incentive
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THE IMPACT OF THE ELECTRICITY BILL REFUND ON GOZITAN BUSINESSES
11
26.70%
33.30%
40.00%
Positive
Negligible or
minimal impact
My business was
not entitled to
benefit from this
incentive
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THE IMPACT OF THE VOUCHER SCHEME ON GOZITAN BUSINESSES
12
35.60%
15.60%
48.90%
Positive
Negligible or
minimal impact
My business was
not entitled to
benefit from this
incentive
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THE IMPACT OF THE OTHER MEASURES ANNOUNCED BY GOVERNMENT ON GOZITAN
BUSINESSES
13
25.00%
75.00%
Positive
Negligible or
minimal impact
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WAY FORWARD 14
75.60%
42.20%
64.40%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
The COVID-19 Wage
Supplement should be
extended beyond the
month of October
The COVID-19 Wage
Supplement should be
reviewed to include
other categories of
workers
The Government should
issue another round of
vouchers in order to
stimulate the economy
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WAY FORWARD
15
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MAIN MEASURES BEING PROPOSED BY THE GBC 16
Transport and Connectivity
• Continue with important projects for Gozo
including enhancing further maritime and air
links between Gozo and Malta.
• Continuation of the permanent link project
between Gozo and Malta.
.
Public Infrastructure
• The building of a new hospital for Gozo.
• The building of an underground multi-storey
parking in Victoria that would not impinge on
Victoria’s historic and authentic landscape.
• The building of a new breakwater for Marsalforn
Harbour.
Sustainability
• Replace the present leased ferry with a hybrid ferry.
This should also be considered for the other Gozo
Channel vehicles as a long-term approach when coming
to replace the existing fleet.
• Electric vehicles of Maltese residents crossing over to
Gozo are to pay a reduced fare. On the other hand
Gozitan residents with electric vehicles would cross for
free on Gozo channel ferries.
• Refund on electric vehicles for Gozo residents to be
raised to € 9,000 instead of the present maximum of €
7,000.
.
Digital Sector
• Provide a tax holiday for companies in the digital
sector to establish themselves here in Gozo.
• Grant a subsidy on rent for companies in the digital
sector which establish themselves in the Digital
Innovation Hub.
• Creating an eco-system of incentives specific for
Gozo, for business enterprises within the wide
spectrum of the digital technology sector alongside a
holistic strategy for Gozo in this sector..
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THANK
YOU