Way Forward Daniel Borg Chief Executive Officer Standing Committee - - PowerPoint PPT Presentation

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

THE WAY FORWARD

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“ At the same time I hope that, with the converging ng commitmen ent

• f all politica

cal and economic c 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 solidar arity ity and creativi vity will be needed to resolve this problem”

Pope Francis (2020), Angelus Saint Peter Square, Sunday 2 August 2020

GOZO’S UNDERLYING ECONOMIC STRUCTURE

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GOZO’S UNDERLYING ECONOMIC STRUCTURE

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64 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 64%

GDP per capita

GDP per capita in Gozo at Euro 15,997 is 64 % of the national economy (2018)

60.3%

Upcoming Deposits

GOZO’S UNDERLYING ECONOMIC STRUCTURE

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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

T

• urism

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

CURRENT BUSINESS SENTIMENT

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WHAT IS THE SECTOR IN WHICH YOU ARE OPERATING?

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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

HOW HAS THE OUTBREAK OF THE COVID 19 AFFECTED GOZITAN BUSINESS?

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6.70% 4.40% 20% 22.20% 46.70%

1 (No Effect) 2 3 4 5 (Very Negative)

THE IMPACT OF THE COVID 19 WAGE SUPPLEMENT ON GOZITAN BUSINESSES

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57.80% 11.10% 31.10% Positive Negligible or minimal impact My business was not entitled to benefit from this incentive

THE IMPACT OF THE RENT REFUND SCHEME ON GOZITAN BUSINESSES

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22.20% 13.30% 64.40% Positive Negligible or minimal impact My business was not entitled to benefit from this incentive

THE IMPACT OF THE ELECTRICITY BILL REFUND ON GOZITAN BUSINESSES

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26.70% 33.30% 40.00% Positive Negligible or minimal impact My business was not entitled to benefit from this incentive

THE IMPACT OF THE VOUCHER SCHEME ON GOZITAN BUSINESSES

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35.60% 15.60% 48.90% Positive Negligible or minimal impact My business was not entitled to benefit from this incentive

THE IMPACT OF THE OTHER MEASURES ANNOUNCED BY GOVERNMENT ON GOZITAN BUSINESSES

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25.00% 75.00% Positive Negligible or minimal impact

WAY FORWARD

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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

• ther categories of

workers The Government should issue another round of vouchers in order to stimulate the economy

WAY FORWARD

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MAIN MEASURES BEING PROPOSED BY THE GBC

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Trans nsport and Connectiv ivity ity

• 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 ic Infrastruc ructur ure

• 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. Sustaina inabil ility ity

• 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 l 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..

THANK YOU