The Malta Independent 29 June 2025, Sunday
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Sentiment or spin? Taking Gozo’s economic pulse

Emmanuel J. Galea Sunday, 29 June 2025, 08:14 Last update: about 2 days ago

The latest Gozo Business Sentiment Survey, published by the Gozo Regional Development Authority (GRDA) and the Gozo Business Chamber (GBC) provided positive news to media. Thirty percent of respondents report better trading in the half-year to March 2025, while sixteen percent say business slipped, leaving a neat fourteen-point net balance.

Numbers alone never tell the full tale, so an unhurried look at the three survey editions published since June 2024 feels prudent. On the bright side, the cost spiral of late 2023 finally unwinds. Only thirty-six percent now list input prices as a top threat against more than half a year earlier. Energy contracts softened, freight rates settled, and many wholesalers extended credit terms. 

The survey also registers firmer demand. Forty-one percent expect sales to rise over the next six months, doubling last September's reading. Domestic tourism rebounds, day-trip numbers jump, and several renovation grants feed purchases of tiles, lifts, and paint. Supermarket distributors already nominate larger summer orders, and craft brewers hire drivers.

Yet clouds thicken on the labour front. Shortages rank first in every edition and hit fifty-three percent in March, the highest score on record. Kitchens hunt for sous-chefs, haulage firms, court retired drivers, and software start-ups dangle relocation packages. Managers chase permits abroad, but bureaucracy drags. One unanswered email can delay an Indian coder for two months; the business loses product momentum and clients pivot to Maltese rivals.

Some entrepreneurs shrug at the survey's upbeat tone. They note that GRDA answers to the Gozo ministry that touts economic success, so impartiality seems fragile. The Chamber depends on project grants from the same Authority, so critics suspect a house view. Organisers promise a representative sample but decline to release respondent lists or explain weighting. Confidence in method therefore rests on trust rather than evidence.

The composition gap widens because the Gozo Tourism Association (GTA) never helped design the poll. Tourism supports roughly a third private job on the island, yet its trade body watches from the sidelines. A dive school in Marsalforn deals with marine-reserve rules; a farmhouse owner in Gharb fights water tariffs; a beach kiosk in Ramla worries about litter. Their stories rarely filter into the aggregate sentiment score.

The absence of content correlates with the absence of members. The questionnaire is completely lacking questions about infrastructure. It never asks how ferry cancellations upset delivery schedules or whether traffic around Xlendi persuaded guests to leave early. Environmental stress stays invisible; no box measures coastline erosion or quarry dust settling on vineyards. A feel-factor question does not exist, so the survey cannot say whether residents enjoy better lives or simply carry heavier wallets.

The omissions matter because they blur the risk map. Each summer grid voltage sags during heatwaves, forcing factories to run diesel generators. Brownouts cost money and reputation but vanish from the sentiment narrative. August traffic jams in Mgarr and Victoria deposit fumes in pedestrians' lungs. Couriers and commuters swallow daily tax on productivity, yet the survey ignores it.

Despite these shortcomings, observers should not dismiss the work outright. Even now, the data provides a rich source of clues for further investigation. The September 2024 edition captured a slowdown in residential construction before permit figures confirmed the lull. The March report notes that manufacturers of custom industrial components are ramping up capital investment - an encouraging signal for lenders considering equipment finance. Even imperfect glass lets some light through.

In mid-2025, Gozo's business climate therefore feels two-sided. Demand outpaces fear, costs drift lower, and exporters sniff fresh opportunity. Yet every forward plan rests on a narrow workforce and a single choke-point ferry route. Energy stability, road capacity, and skill pipelines look fragile. Investors ask for proof, not promises, that the Victoria bypass, fibre redundancy, and apprenticeship schemes move from slide decks to diggers.

The sentiment exercise started in 2023 after pandemic turbulence exposed the absence of timely island-level indicators. Officials argued national data sets blurred Gozo behind Malta's larger weight and masked the shock that border restrictions dealt to a two-island labour market. The GBC partnered with the GRDA to plug that gap and promised twice-yearly snapshots. The first edition, released in June 2024, already contained a telling warning: only forty-five percent of firms had ever tapped a government skills scheme, a figure that pointed at a bottleneck long before staff shortages hit current highs.

In parallel, the survey introduced special focus chapters. Initially, the report on climate-risk awareness revealed that less than half of owners recognised flooding or heat stress as significant risks. The second report drilled into skills. The March 2025 instalment shifted to employee wellbeing and revealed that only one in five firms tracks burnout or mental-health indicators. By March 2025, staff shortages have worsened, yet skills-scheme uptake hardly shifts. Employers highlight the burden of excessive paperwork, delays in reimbursements, and a mismatch between training and real needs. They call for more short courses that improve communication skills for foreigners, upgrade customer care, and preserve or modernise Gozitan crafts like lace-making, stonework, and traditional food production.

Would a joint GBC-GTA survey fix credibility? Probably, if both partners swear off official steering. The Chamber holds databases across retail, manufacturing, farming, and finance; the Tourism Association tracks occupancy rates, trail maintenance, and water clarity. Merging those lenses would show the entire horizon. A mobile-first form that takes five minutes could reach micro-firms, family farms, and sole traders ignored by long PDFs. Public release of anonymised raw tables would undercut suspicion and energise researchers.

The design should focus on sharper questions, not more pages. Ask owners how many labour hours ferry delays stole last week, how many shipments missed the ro-ro connection, and which infrastructural project ranks top in urgency. Rate satisfaction with the island as a place to live and work with one emoji click. Capture whether respondents would advise a nephew to start a business in Gozo tomorrow. Such direct metrics cut through spin and reveal lived reality.

Publishing technical notes lifts transparency further. Readers need invitation counts, completion rates, and confidence intervals. Journalists require cross-tabs that separate micro-firms from conglomerates. Statisticians are in search of, and require, effective weighting formulas for their analyses. Politicians should welcome scrutiny; honest numbers burnish credibility more than marketing gloss.

None of these reforms cost fortunes. The survey already runs on digital infrastructure that supports secure links. Open-data exports require a developer day, not a tender. The bigger hurdle lies in mindset: moving from communication strategy to information service. When authorities embrace that shift, they win allies in boardrooms and citizens' groups alike.

Practical follow-up steps are now readily accessible and easily implemented. Government can shorten reimbursement waits for training schemes and digitise work-permit verification to cut queues. The GBC might lobby for modular student housing, so young talent chooses Gozo College rather than crossing the channel. The GTA could monitor beach litter and publish weekly dashboards that feed straight into the sentiment report. Each act fills a data blank and boosts trust.

By following these steps, next spring's growth headlines might persist, but the deeper story will be more impactful. Investors will see not just optimism, but a plan. Residents will feel that surveys echo their street-level talk and not only a boardroom chorus. Decision makers will wield a laser pointer, not a broom, to sweep obstacles aside.

The island thrives when light floods the limestone. Because the data is transparent, it provides clear and readily available information. A genuine partnership between commerce and tourism, supported not steered by the state, can turn a glossy pamphlet into an honest barometer and give Gozo the durable confidence its people seek.


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