The Federation of English Language Teaching Organisation Malta (FELTOM) has estimated the financial impact of 4,000 student cancellations will result in a devastating €3.4 million loss for the local economy.

Over the past two weeks, FELTOM has mobilised all its resources to be able to address the current Coronavirus global epidemic and how it has affected the English Language Teaching (ELT) industry.

On Wednesday, Prime Minister Robert Abela announced that aside from Italy, the government has introduced a travel ban to and from Spain, Switzerland, Germany and France.  Such a travel ban will ultimately affect the ELT industry.

FELTOM described the situation as “the perfect storm” for all English Language teaching organisations.

The sector was the first to start feeling the effects of this epidemic, effects that were confirmed by a survey carried out by Deloitte amongst FELTOM member schools which represent 85% of the total ELT industry in Malta, the federation said. The report showed a cancellation  rate in March and April in excess of 40% and a progressive slow-down in booking place which has already reached 45% for the summer months.

FELTOM described the findings “very worrying”.  The estimated financial impact of 4,000 student cancellations will result in a devastating monthly financial loss of €1.4 million for FELTOM schools and a €3.4 million loss for the local economy.

“The cancellation trend is persisting. The same survey estimates that 6,000 student cancellations will equate to a debilitating monthly loss of €2.1 million for the schools and €5.2 million for the economy.”

The industry has always been an important contributor to Malta’s tourism industry and the economy at large with an average of €137.2 million generated every year according to Deloitte’s 2019 report. The sector employs around 2,000 people according to the NSO’s 2018 statistics, not to mention the hundreds of host families and rental accommodations that are being impacted.

FELTOM has, to date, held a meeting with the Minister responsible for Tourism to discuss the implications the situation has been having on the sector. It will also be meeting with the Minister of Education to voice similar concerns. A formal position paper outlining the needs of the industry has been submitted to the government.     

“The English Language School operators have always contributed to the Maltese economy, generating employment and revenues permeating various fields of the Maltese economic fabric. Teachers, office and ancillary staff, group leaders, host families, transport providers, guides, restauranteurs and other service providers will undoubtedly all be adversely affected,” the federation said.