The Malta Institute of Management held the second annual MIM Yacht and Superyacht symposium at the Westin Dragonara.

The symposium was attended and addressed by prominent players in the industry. It was also addressed by the Minister for Finance, Prof. Edward Scicluna through video conference.

During the symposium a study on the economic impact of the industry in Malta was presented. It resulted that the sector gives nearly a 1% contribution to the Gross Domestic Product.

Malta is historically a maritime hub. Its trade and commerce have always been surrounded to its geostrategic location. We all know this is a major advantage, however, it certainly puts Malta subject to what is going around. We have seen this in various sectors. Unfortunately in recent years this volatility may be also attributed to some security issues that came up in the Mediterranean including the international problem of immigration from the African Continent.

The Superyacht industry in Malta certainly began a new era with the privatisation of the super yachts facility previously held by the Malta Drydocks as may be seen from the above graph.

One would have expected a larger number of bidders at the time of privatisation given the advantages Malta offers. However, given the issues that this facility and the adjacent yards had in the past particularly related to political matters, there was great concern on the feasibility of the same. Today, we can have a different outlook as the facility is fully functional in a sustainable manner.  

Certainly, it is an industry that needs better policies and directions. We need to address the weaknesses in the provision of ancillary services which are on many occasions missing.  

In a period which is all the more challenging for Malta, particularly on issues related to the financial services industry, this and other sectors become considerably more important.

In planning the direction and policies we cannot but consider other discussions taking place including discussions on Outside Development Zones.

Whichever direction and decisions there will be controversy. The issue is where to strike the balance. Our shores are limited. We need more berthing places and facilities. We wish to keep untouched ODZs yet we do not want to disturb residential areas.

In the past, this country turned down projects in the sector due to residents' complaints. Yet it ignored such complaints in other sectors such as the fish farming industry.

We may face conflicts between sectors but with an open mind and considering our limited resources a balance for the benefit of all may be found.

The industry needs to work hand in hand. Competition is healthy in such a sector but so is collaboration and mutual respect. Government needs to not only be more open for new investment in the area but proactively incentivise the sector.

Over the past few months the message given by Parliament was not the best it could have been. We certainly need to discuss certain issues like matters on Panama Papers. This may have not been addressed in the most appropriate manner. There are other issues that need to be discussed including this sector.

The consultation process has not been at the levels one would expect for an industry that has the potential for growth as will be highlighted in the aforementioned study.

In the coming weeks, the MIM will be presenting the government and the Opposition the aforementioned study for their evaluation and consideration.

The MIM gives particular thanks to Palumbo Superyachts who believed in the initiative and supported the institute in ensuring that this does actually turn out into a unique annual event in the Mediterranean.