The Malta Independent 6 May 2025, Tuesday
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Is Gozo’s new airfield worth the investment?

Emmanuel J. Galea Sunday, 27 October 2024, 08:08 Last update: about 7 months ago

Gozo, Malta's more rural island, has long struggled with transport connections. Most travellers rely on the ferry from Cirkewwa or fast ferry service from Valletta to get between Gozo and Malta, but this can be slow and inefficient, particularly for commuters and tourists who prefer faster travel options. To address this issue, the Ministry for Gozo has suggested an extension of an existing heliport in Xewkija at Ta' Lambert to create a fully functioning airstrip. This new airfield would provide a direct air link between Gozo and Malta, offering a quicker alternative for both locals and visitors. It would also support general aviation activities, including private flying and recreational aviation.

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However, the proposal has sparked mixed reactions. Gozo Minister Clint Camilleri sees the airfield as a key step toward modernising the island's infrastructure, which would help boost tourism and the economy. Former Prime Minister Alfred Sant has expressed concerns, whether the airfield would be financially viable. Sant and others fear that, like past air services, this project could struggle to survive without government subsidies.

Let's consider the costs, benefits, and potential risks of this airfield to assess whether it could be a worthwhile investment for Gozo.

Project Costs and Benefits

The proposed airfield serves a range of users, from tourists and Gozitans travelling abroad to workers commuting to Malta. According to a report A Cost Benefit Analysis and an Economic Impact Assessment for an Airstrip Project on the Island Region of Gozo by E-Cubed Islands in February 2022 commissioned by the Gozo Regional Development Authority the total cost of the project will be €2.5 million. Of this, they would allocate €1.6 million to upgrade the current heliport into an eco-friendly airfield, while they would spend €861,000 on purchasing three nine-seater aircraft to operate the service. This report projects the airfield will attract interest from private aviation enthusiasts, who prefer Gozo's quieter airstrip, compared to the congested Malta International Airport (MIA).

Time Savings and Environmental Impact

One of the key benefits of the new airfield would be the time savings for travellers. Ferry trips between Gozo and Malta can take a long time, particularly during peak hours, while the air service would offer a much faster, more direct route. By spending less time in transit and having more time to be productive or enjoy their visits, both tourists and commuters may generate an economic benefit of around €1.2 million per year through this reduction in travel time.

The airfield could also contribute to environmental sustainability by reducing road traffic between the islands. Fewer cars making the trip between Gozo and Malta would mean lower fuel consumption and reduced carbon emissions. It's estimated that these savings could reach €61,130 annually. However, the planes themselves would generate some emissions, with estimated costs of €26,290 per year. Even after accounting for the emissions produced by the aircraft, the overall environmental impact would still be positive, as the reduction in road traffic emissions would outweigh the emissions generated by the flights.

Will the airfield be financially viable?

For the airfield to be financially sustainable, it will need to attract enough passengers to cover its operating costs, which are expected to be around €1.2 million annually. Early projections in this report mentioned above suggest there is strong demand from several key groups: tourists looking for a faster travel option, Gozitans who frequently travel abroad, and professionals who commute regularly between the islands. Private aviation enthusiasts could provide a steady stream of users for the airfield, further boosting its financial viability.

However, former Prime Minister Alfred Sant's concerns about the project's sustainability are worth considering. He has pointed out that similar air services in the past have failed to survive without government support, raising serious doubts whether this project might face similar challenges. While current forecasts suggest the airfield could cover its costs through ticket sales and aviation services, ensuring the project's long-term success will depend on maintaining strong demand and avoiding the need for government subsidies.

Economic impact: Jobs and revenue

Beyond benefiting travellers, the airfield may affect positively Gozo's economy. The development of general aviation activities, such as private flying, may generate €1.7 million in annual economic value. The project may also create 34 full-time jobs, which would be a welcome boost to employment opportunities on the island.

Increased tourism resulting from easier access to the island could also contribute to economic growth, with more visitors likely to spend money on accommodation, dining, and local attractions. The report projects that the airfield may generate €596,270 in tax revenues each year, providing a financial boost to the local economy.

Resilience to economic shocks

One important question for any large infrastructure project is whether it can remain viable in the face of economic challenges, such as fluctuating passenger demand or rising fuel prices. This report includes a risk assessment of the airfield project and suggests that it should be able to withstand these potential shocks. The project is to deliver a Net Present Value (NPV) of €10.4 million, assuming a social discount rate of 5%. This translates to a return of €2.06 in benefits for every €1 spent on the project, showing a strong economic return.

However, it's important to note that these projections are based on certain assumptions about demand and operating costs. If demand falls short or if operational expenses rise, the financial outlook for the project could change. Continuous monitoring and careful management will be essential to ensuring the airfield's long-term success.

Environmental and political considerations

While the airfield would reduce road traffic emissions, the environmental impact of the aircraft themselves remains a concern. However, experts expect the overall environmental benefits will outweigh the emissions produced by the planes, particularly in terms of reduced road traffic.

Politically, the airfield has been a topic of debate. Gozo Minister Clint Camilleri has been a vigorous advocate for the project, emphasising its potential to modernise Gozo's infrastructure, improve tourism, and create jobs. According to Camilleri, making the island more accessible to both tourists and professionals is essential for boosting the economy and keeping Gozo competitive in the long term.

Alfred Sant's concerns about the project's financial feasibility highlight the need for caution. He is sceptical about the project's long-term viability. The information provided here comes from a report by E-Cubed Islands in February 2022, commissioned by the Gozo Regional Development Authority (GRDA) which the Gozo Ministry supports with about €700,000 annually. However, since an independent firm did not conduct this report, there are concerns about potential bias. Without such a study, there is a risk that the airfield could encounter the same problems that previous air services faced, becoming reliant on government subsidies to stay operational.

A more comprehensive feasibility study, conducted by an independent established entity, would provide a clearer picture of the project's financial viability and help address lingering concerns.

The proposed airfield at Ta' Lambert in Gozo presents both opportunities and challenges. On the one hand, the project offers logical benefits, including reduced travel times, fewer emissions from road traffic, a boost to the local economy, and the creation of new jobs. The €2.5 million investment seems modest compared to the projected returns, with the project expected to deliver an Economic Net Present Value of €10.4 million and a benefit-to-cost ratio of 2.06.

However, the project's long-term success depends on its ability to attract enough passengers and aviation users to remain financially sustainable. While current projections seem promising, concerns about the need for government subsidies remain, particularly if demand falls short of expectations. 

If carefully managed and implemented with attention to potential risks, the airfield could significantly improve Gozo's transport connections, enhance its economy, and shape its tourism industry for years to come. Hope this is not another dream!

 


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