The recently published Gozo Business Sentiment (GBS) survey by the Gozo Regional Development Authority and the Gozo Business Chamber provides a promising snapshot of business confidence on the island. Covering the period between September 2024 and March 2025, the third edition of the GBS highlights notable improvements across several economic indicators. However, while the numbers appear reassuring, the survey once again fails to acknowledge the deeper, persistent challenges that continue to shape - and in many cases, undermine - Gozo's long-term sustainability and distinct identity.
According to the survey, 30% of firms reported improved business conditions during the six-month period, a jump from 20% in the previous survey round. In contrast, those indicating a decline in business dropped to 16%.
Employee shortages remain the most cited concern, with over half of businesses highlighting this as a pressing issue - particularly those in the construction (70%) and tourism (65%) sectors. While cost pressures are still a challenge for 36% of firms, this concern has eased significantly since its peak in 2023. Expectations for future business activity are also increasingly optimistic: 41% of respondents foresee improvements in the next six months, and hiring momentum remains strong, with 58% of firms planning to expand their workforce.
Yet, for all the positive sentiment and statistical gains, the survey glosses over more fundamental issues affecting Gozo's development. Notably absent from the report are growing concerns over connectivity which continue to limit the island's full potential. There has been no real investment in the main link that connects Malta to Gozo. The three ships owned by Gozo Channel in use are old and need to be replaced, while the fourth, which is leased, has serious limitations, apart from being very expensive to run. This persistent lack of infrastructure development undermines both local businesses and the resident population, whose livelihoods hinge on dependable access to broader markets and resources.
Traffic congestion is another serious issue that seems to be sidelined in the business sentiment analysis. What was once one of Gozo's key appeals - its slower pace of life and ease of mobility - has been rapidly eroded. Congested roads, poor traffic management, and increasing vehicle numbers are creating urban pressures that were once confined to Malta but are now being mirrored in Gozo with increasing regularity.
Perhaps most worrying is the extent to which over-construction is altering the very fabric of the island. The GBS makes no reference to this, yet it is an issue that affects not just tourism, but quality of life for residents and the integrity of Gozo's environmental and cultural heritage. The current construction boom may benefit the secondary sector in the short term - and this is clearly reflected in the net positive sentiment among those businesses - but it raises serious questions about long-term planning and sustainability. The charm and uniqueness that once distinguished Gozo from Malta are being lost to haphazard development.
What the GBS does well is provide a useful barometer of short-term business conditions, hiring intentions, and investment trends. However, its failure to address the broader socio-environmental context in which these businesses operate is a major blind spot. For Gozo to truly thrive - not just economically, but as a distinct and liveable region - future surveys must begin to consider and reflect on these critical issues.
In the pursuit of progress, Gozo must not lose sight of what makes it unique. Economic development is essential, but it cannot come at the cost of identity, sustainability, or the well-being of its residents. A more holistic approach is needed - one that integrates business sentiment with community realities and long-term planning priorities.