The Malta Independent 13 May 2024, Monday
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Reaping The fruit

Malta Independent Friday, 2 November 2007, 00:00 Last update: about 18 years ago

Three years ago, when the tariffs charged by Gozo Channel Company Limited were increased – they were staggered over a period of time – the government was attacked from all quarters because, it was said, such a decision would have killed Gozo’s economy as fewer people would have travelled to the sister island.

The government was also accused of taking anti-social measures, hitting Gozo in particular by discouraging Maltese people from taking their short breaks there as they normally do. It was said that disaster would have hit Gozo and that its economy would not have survived.

Apart from the Malta Labour Party, both the Gozo Business Chamber as well as the Gozo Tourism Association had aired their disapproval on such price increase. They had painted a very gloomy picture of what would have happened, little realising that if the government had not lifted its finger, there was a risk that the company would have had to be closed.

Jobs would have been lost, and the problem of transportation between the two islands would have isolated Gozo and the Gozitans.

In an editorial published on 23 April 2004, The Malta Independent had said that the “short-sighted will point fingers at the government for increasing the tariffs”, adding however that one needed to look at the wider picture, including the need to put Gozo Channel Company Limited back on its feet, in financial terms.

Today, three years down the line, Gozo Channel has moved away from making steep financial losses to a substantial profit. And the number of people and vehicles crossing over between the two islands has increased too, as have the number of trips.

Perhaps the Gozo Business Chamber and the Gozo Tourism Association should acknowledge that they were wrong, three years ago, to think that the increase in the price of ferry tickets introduced would have been a disaster for Gozo’s economy. To expect the MLP to do likewise is another matter.

From a loss of Lm988,000 (EUR2.3m) registered in 2003, which was the peak of the company’s difficulty, the projected profit this year is expected to be in the region of Lm750,000 (EUR1.75m). The number of trips between 2006 and 2007 increased by three per cent, that of passengers by 8.1 per cent and that of cars and cargo by 10.1 per cent. This is a massive turnaround indeed.

What has happened at Gozo Channel is the perfect example that where there is a commitment to a cause, and all concerned pull the same rope, there is a strong chance that improvement is registered. Let us not forget that, throughout all this, the Gozo Channel fleet has been totally changed, and people today travel on safe, comfortable boats.

Today, Gozo Channel is in a stronger position and last Monday a new set of incentives were announced to further encourage people to travel to Gozo, over and above those that have already been in place for the past years.

For example, all elderly people who hold a kartanzjan (elderly card) can travel free of charge, while other initiatives were introduced for the winter season, traditionally the weakest in terms of people who visit Gozo. Hotels and restaurants taking part in the Gozo Channel schemes will no longer pay their registration fee of Lm75 (EUR175).

These measures are being introduced to further encourage people to travel to Gozo, especially during the so-called leaner months.

These and other incentives are possible because Gozo Channel has managed to turn the corner. This would not have been achieved without the difficult decisions that were taken three years ago. The company is now reaping the fruit of those bold moves.

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