The GRTU yesterday unveiled the results of a survey it conducted among its members.
The survey, conducted in January, collected the responses from 200 participants who accessed the survey by means of a token they were sent. The token was to ensure that no one replied to the survey more than once.
The basic question the survey asked was to compare the 2014 sales to the 2013 ones. A relative majority of the respondents replied that sales had increased.
25% replied that sales had increased by up to 20%, 9% by up to 20% and 2% by up to 30%. On the opposite side, 22% replied that sales had decreased by up to 10%, 9% by up to 20% and 2% by up to 30%. 31% replied sales had remained the same.
Splitting the respondents according to their combined values gave a not so different reply: 37% replied that sales had increased while 32% said that sales had decreased. Once again, 31% said sales had remained the same.
When the respondents were restricted to retail outlets only, 40% replied that sales had decreased and only 25% said sales had increased.
Those who reported sales had increased, ascribed this to changed line of business, new product lines, promotions etc.
They also mentioned:
• Change in business strategy, or location, increased level of professionalism and networking
• New business opportunities such as exports and new areas such as the film industry,
• Use of government grants
• Change in government
• Valletta is growing stronger as a commercial centre
On the contrary, those who reported a decrease in sales blamed the introduction of new regulations, increased local competition, sales lost to online shopping and illicit trading.
They also mentioned:
• Change in people's lifestyle
• Wardens pestering clients
• The scrapping of old cars and
• Lack of consumer confidence.
As to their expectations for 2015, 36% said this year will be better and only 17% said it will be worse, with 47% saying it will be the same.
57% said they plan to keep the business the same size it was in 2014, 31% looked forward to expanding the business and only 5% replied they planned to downsize the business and 1% to close it down.
They also mentioned:
• Restructuring and rebranding
• Including other lines of business and export; and
• Trying to save my business.
The respondents were also asked about key events in the course fo a year.
They said they are affected by the annual Budget (60%) but 29% said they were negatively affected by this year's budget and 15% said the budget had had a positive effect.
Asked to explain, those who said the Budget had impacted negatively on their business mentioned:
• A small COLA increase which led to less spending power
• Excise duties on ammunition, wines, tyres and lubricants
• Fuel price did not decrease but increased
• Increase in road licences
• All these excise duties will only aggravate the problem of unfair competition
• Few incentives to industry
• Measures regarding employment of people with disability
• Increase in running costs
• Increase in tax of cement
• Change in taxation system when selling property.
Those who feel the Budget will have a positive impact on their business mentioned:
• Reduction in electricity prices
• Tackling unfair competition by sea
• Removal of eco tax
• Promotion of certain specific sectors
• Extension of certain schemes
• Reduction of road tax for small engine capacity motorcycles
• Addressing transport issues ease deliveries
• Everyone subject to VAT regulations
• Stamp duty for fist time buyers
• The scrappage scheme.
As to concerns for 2015, the respondents mentioned, in order of preference:
• Unfair competition
• High fuel costs
• Parking in all localities, especially in commercial areas and Valletta
• Reduction in bureaucracy and government administrative charges
• Easier access to funds and grants
• Eco tax
• Saturation of market
• Issues in relation to public procurement (fairness)
• More help for Gozo businesses
• Tackle dominant position players and their charges
• Help to compete online
• Hawker permits
• Attracting better quality tourists
• Labour force limitations and lack of skills
• Postal charges to export
• Late payments
• Student card issue
• Rent laws
• Reducing heavy vehicle licences
• Wardens
• Loading and unloading issues
• Car scrapping scheme to include also commercial sector
• Opening hours (bars want extended opening hours).