The Foundation for Transport Studies recently held its first seminar on the effects of insularity, growth and development of industry in Gozo.
The seminar, which was held at L-Imgarr Hotel, focused on the link between insularity and the inter-model transport solutions as well as their impact on society.
Dr Michael Caruana, a member of the business community, said that although the Gozo Ministry has mitigated the difficulties encountered daily by the Gozo residents, it should be given special allowance and power to support investments and attract job opportunities to the island.
He said that the business community is very dependent on the link between the two islands especially in areas related to the tourist industry. During the past 40 years the improved link, with the purchase of various vessels, has been in line with the aim to develop Gozo as an upmarket tourist resort. Old shops have been refurbished and more shopping facilities have been opened to provide a higher standard of living for Gozitans while improving services to tourists.
Dr Caruana said that the reduction of ferry trips will affect the business community, which has invested much time and money in the island's development. He added that cargo has always been transported from Sa Maison and there is no reason for this to change.
John Magro, president of the Gozo Business Chamber, spoke of the four fundamental freedoms of movement promoted by the European Union. These are the freedom of movement of people, goods, services and capital. He said recent changes in the Gozo Channel ferry timetable will directly affect the freedom of movement of people, especially since it is the only public means of transport between the two islands.
High transport costs, time delays and storage costs are other difficulties encountered by Gozitan businessmen. He said that any attempt for Gozo to penetrate larger areas involves high costs due to shipping and infrequent traffic flows. Services in the mainland and larger territory can be shared by a large number of people, however those in small countries come at a higher cost per capita. Frequent connections between the two territories would facilitate this movement, and would be cheaper than duplicating unsustainable service structures in small islands.
Mr Magro claimed that it is very rarely profitable to invest in islands as they do not have a level playing field with regard to freedom of movement of capital. Islands have to strive hard since there is no hinterland to act as a buffer in case of recession.
Mr Magro also referred to the Gozo Special Needs Report, commissioned by the EU and Maltese government, which refers to Gozo as an island suffering from a 'double insularity', since it is on the periphery of another small island. This increases the need of sea transport with Malta and with the rest of the world, affecting the operation of Gozitan business and industry.
Joe Muscat, secretary of the Gozo Tourism Authority, explained how its double insularity is a permanent constraint to Gozo's accessibility and tourism. He said that until constant air and sea links are available, covering the low season, the annual average occupancy rates of Gozitan hotels will never improve.
He said that although the GTA appreciates that Gozo Channel has to operate profitably it disagrees with the reduction of services. He also spoke about the importance of forward planning in the tourism industry, stating that sea and air crossings to Gozo should be constant and reliable.
He also said that no consultation was ever made with the GTA when the Mgarr/Cirkewwa ferry terminals were being discussed. The GTA is currently working on an alternative air link recommending the introduction of a common rated fare for those visiting Gozo whereby passengers taking an international flight to or from Malta with an ongoing connection to or from Gozo pay exactly as if the departure point or destination was the mainland.
Mr Muscat said the GTA looked forward to the introduction of an integrated transport system starting at Malta airport, and covering arrival at Cirkewwa, the ferry crossing, and eventually the transfer to accommodation in Gozo. This would help the tourist minimise the time factor between arrival at the airport in Malta and the arrival at his holiday accommodation in Gozo.
Censu Galea, Minister of Transport and Communications, explained that although insularity has a detrimental effect on manufacturing industry and agriculture, it has added an attraction in itself with regard to tourism. The development in the project for the construction of Cirkewwa and Mgarr terminals will enhance shipberthing and passenger facilities of the Gozo ferry link, enabling the ferries to continue operating even in bad weather.
Concluding the seminar, Minister Giovanna Debono explained that the EU has been studying the sector constraints for Gozo stressing the restrictions in transport facilities and services. She said that EU experts have acknowledged that Gozo's double insularity negatively influences its tourism, due to the expense of inter-island crossing as well as the discontinuities and uncertainties associated with the transport service.
Reference was made to the Gozo Special Needs Assessment Study, conducted by the EU experts. In the Single Programming Document it has been stated that 10 per cent of the EU structural funds that Malta will receive will be allocated to the additional efforts needed for Gozo to catch up with the rest of Malta and other European regions.
A project committee is to be set up in agreement with the European Commission to pre-select projects and ensure their implementation by the authorities concerned.