Gozo last year saw the largest increase in the number of tourists when compared to the previous year, Prime Minister Lawrence Gonzi said yesterday at a Marsalforn social activity.

All projects in Gozo which had created employment had been implemented by Nationalist governments and Gozo had always benefited greatly under PN governments, unlike what happened under Labour, he said.

Referring to projects which were inaugurated recently, such as the new Mgarr terminal, drainage water treatment and new roads, he said these had improved the quality of life in Gozo and the tourism sector, which had made the biggest leap forward in the Mediterranean. The government, he said, was committed to continue improving the sector.

Another sector which was benefitting as well, Dr Gonzi said, was the small and medium business sector, whose trading licence had been reduced by 25 per cent. There had also been a reduction in income tax, which would be repeated in coming years.

These initiatives had all led to economic expansion, the Prime Minister said.