Three years ago, the Labour Party – then the party in Opposition – had repeatedly promised that once in office; Gozitans would have better opportunities in Gozo. This promise was not an empty one. Neither was it made out of ignorance or arrogance without being aware what this in reality entails.
We were fully aware of the challenges ahead. We knew the numerous obstacles that we had to overcome to fulfil this promise. But we made this commitment because this was what Gozitans deserved.
Top of the list of the things to do, was that of instilling a sense of optimism again among Gozitan economic operators. For too long, Gozo had been considered as no longer attractive for establishing competitive economic activities. As a consequence, businesses were no longer investing in Gozo. The birth of new businesses was going down while the closure of existing businesses was going the opposite way.
The effects of this persistent slowdown in economic activity in Gozo were not limited only to the indicators such as the Gross Domestic Product or the average household income. The effects were more widespread. The lack of business generation impacted the demographic dimension as well, with Gozo experiencing a persistent loss of its active and young population on an incremental basis.
Gozitan youths simply stopped believing that their future lay in Gozo. They looked to the main island for better opportunities and they did their talking with their feet.
Thanks to the various initiatives, we are now seeing the desired results. Short-term indicators are highly encouraging. The number of tourists, both local and non-local, is on an upward trend. SMEs are thriving again, while foreign investment, absent for a quarter of a century, is finally being attracted to Gozo.
The number of passengers and vehicles commuting between Malta and Gozo is another important indicator. The numbers have increased for each of the past three years and this led to two distinct but related results. First, it increased the turnover of the Gozo Channel and with it an improvement of its financial situation. From a loss-making company, the company is now making a healthy profit of €1 million. This was achieved in less than three years. Secondly, it increased the internal demand for services and goods in the Gozitan economy and this left positive results in employment figures.
Indeed, employment which is more of a long-term indicator, is giving highly encouraging results. The latest figures for unemployment confirm this. Data for December 2015 shows that the number of persons registering for employment in Gozo stood at 648 compared to 765 registered in December 2014. This represents a decline of over 15 per cent or 117 persons.
The fall in the number of registered unemployment did not occur because the labour supply declined but was fully driven by an increase in employment. Employment figures show that the number of people gainfully occupied in Gozo increased by 1.8 per cent over the previous year, and over eight per cent higher when compared with 2013. What is even more interesting is the fact that the decline was registered in all age categories confirming that jobs are being created across the board, benefiting both young people that are seeking their first job as well as those in temporary unemployment due to employment mismatches.
We are not resting on our laurels. We could have congratulated ourselves given that in less than three years we have achieved more than the previous administration had achieved in more than five years. But this is not our way of doing things.
In November of last year, we announced a scheme whereby Maltese residents could travel to Gozo during the weekend and pay a reduced fare. This scheme proved successful and was extended to this year. This will ensure that Gozo remains an attractive destination all year round, including the shoulder months, thus sustaining the island’s economy.
The initial results for the month of January are highly encouraging. Figures indicate that both the number of passengers and vehicles, excluding commercial ones, doubled compared to the same period last year. Such an increase in traffic will help the company maintain its financial position while Gozo as a whole will benefit in a variety of ways, due to the multiplier effects of such increased requests for goods and services.
Last year was a successful year for both the ferry service and the Gozitan economy as a whole. Thanks to this and similar initiatives, we will work to have the same results for the current year.
Dr Refalo is Minister for Gozo