71% of businesses expect downturn in 2009 - 62% already seeing turnover drop
A GRTU business performance survey has found that 71 percent of respondents feel 2009 will be worse for business than this year, with 41 percent of them saying they do not expect the economy to grow.
The survey results, presented at a GRTU conference on preparing the country for the challenges ahead, found that 62% of respondents saw their turnover drop by between 10% and 30% in the second half of this year compared to the first six months, while 22 percent saw no change and 16% reported growth.
Just over three-fourths said their profits had slumped by between 10% and 30% during the same period.
Those who reported a drop in profits blamed their situation mostly on rising costs and a slowdown of the economy, although 12% also complained of too many businesses opening in their sector.
When asked what they intended doing in the near future, 56 percent said they would ‘remain the same’ while 17 percent said they would reduce the size of their business.
Six percent said they would close down.
Sixty-seven percent said they would retain their workforce but 25percent said they would lay off people. Only 8% said they expected to increase the number of their employees.
Popular Stories
Update 3: Woman found dead in car,...
Updated: Woman dies in car crash
Part of Dwejra 'Azure window' collapses
The end of the bar that ‘never closed’
Carm Mifsud Bonnici resigns after...
Bundy does not know whether to...
Updated - Jason Micallef demands...
This WAS the night - Kurt makes it...
Petrol price up 6c
In Discussion
Updated - Jason Micallef demands...
Gozo tunnel could take 5-7 years to...
CABS remote controlled aircraft shot...
Joseph Calleja condemns portrayal of...
Carm Mifsud Bonnici resigns after...
Updated: Labour would give...
CABS drone shot down
Second group of migrants arrives
Adrian Vassallo in scathing...
4 Comments
Post comment
Please sign in or create your Account to post comments.
Joseph Casha
Dec 16th 2008, 19:22
@ Tony Cassar:
As much as i do understand your point, please bear in mind that GRTU members extend to more than just retailers. How can your suggestion going to help the small hotels in malta? Can they have a hotel room or a holiday posted to them in the mail so they can save on flight tickets? I assure you that 99% of hotels have been in the digital age for a very long time. However, this will not help unless the government does something to help the SMEs instead of burdening them with more charges and taxes.
Benson.W
Dec 16th 2008, 18:17
Its a tough old world we're living in, however as Mr.Tony Cassar says why pay more and he is absolutly right and correct to say so, because now a days is the name of the game and one should stop moaning and shop around for better bargains we certainly do and try to save on rush buying as much as possible that way one can save enough to buy another item and so on and on.. The UK is full of surprices, and i read somewhere that a car sales were giving away-- yes Giving away a FREE car with every new car bought., how is that for a bargain>
one for the man of the house and t'other for the better half. Happy Xmas Folks* it will be a good idea if Malta and Gozo poultry farms were giving free turkies with every 30lb'rs that way it could make last till Easter.(LOL).
Tony Cassar
Dec 16th 2008, 18:03
Maybe the GRTU and its members should start living in the digital age and acknowledge that a big chunk of their decreasing sales is being lost to online shopping. People are still buying presents this Christmas, but they are doing so in an intelligent way - buying off the web if they find it cheaper.
Out of the some 20 presents that I've bought this year, I've only bought one of them locally. All the rest were bought online from sites based in the UK. I saved €20 on an electronic item that is priced at €58 from a local outlet.
As the ASDA slogan says: Why pay more?
Benson.W.
Dec 16th 2008, 17:32
Lets all keep our fingers crossed in 2009 that the latter sentence of the columm: increase in workforce is in the bag, otherwise just like the UK, Malta will sink in a way that reflects the post war years - HOPEFULLY NOT. and in my opinion things will get worse before getting better, so what goes up must down back to normal and the quicker the better for ALL of us, however its a buyers market both for consumers and properties if one has got the cash?