Tapping into Malta’s creativity

The land of the sun and the sea. Malta’s economy and her tourism have been largely dependent on the island’s beauty and natural resources. But what about its human resources? And how about tapping into the creative side or talent-aspect of the Maltese? How about developing an economy of culture?

Over the past 18 months, the government seems to have decidedly turned its attention to culture and creativity.

The wheels were set in motion when The Malta Arts Fund (MAF) was launched in August 2009 which was followed shortly afterwards by the launch of the draft Cultural Policy in February and by the Malta Arts Scholarships in March. These were preceded by the Malta Film Fund launched in 2008.

Over the last few months however, there has been a flurry of activities, directly linked to Malta’s culture economy and industry, which are already reaping benefits and creating ripple effects. This is especially true when considering the people/groups whose projects have already been given financial assistance through the MAF.

In January however, a working group within the culture and finance ministries was set up with the sole purpose of formulating the strategic development for the creative industries in Malta.

This working group, led by Alfred Camilleri, Permanent Secretary at the Ministry of Finance, the Economy and Investment, is made up of a strong team – chiefly comprising Toni Attard, Caldon Mercieca and Jeanine Rizzo who are being readily assisted by a number of economists within the finance ministry. Their hard work is aimed at creating a healthy and professional environment in which the arts in Malta can flourish.

Mr Attard and Mr Mercieca – together with other professionals in the field –were already actively involved in the authorship of the draft Cultural Policy, and with Dr Rizzo they are also responsible for the 20 plus page chapter published in the pre-Budget document 2011.

This important section within the pre-Budget document sustains the parameters set in the extensive draft Culture Policy (which will be presented to the Cabinet in October after careful and lengthy consultation processes with various stakeholders have been carried out) while simultaneously building upon them. Titled Creativity Works, this chapter aims at defining Malta’s Culture and Creative Industries (CCIs).

“The working group defines the creative economy as a set of knowledge-based economic activities (creativity and intellectual capital) that encompass the cycles of creation, production and distribution of creative goods and services and which have the potential to generate economic growth, employment and development (social and cultural).”

The main pillars within the CCIs have been divided into the following sectors:

1) Heritage, which includes crafts, traditional festivals and celebrations, cultural sites and antiques. Heritage holds the smallest share within the creative economy, accounting for five per cent of the industry.

2) Arts, of which the visual and performing arts as well as music form part. The arts represent six per cent of the creative economy.

3) Media, including all publishing and printed material, audiovisuals (film/video production and distribution, film servicing, television, video games, radio and online audiovisuals). The media sector makes up 37 per cent of the creative economy.

4) Creative business services, which incorporates design (interior, graphic, fashion and product design), software (web development, databases, and digital applications), creative services (architecture and advertising) and cultural services (cultural tourism). Creative business services comprise 52 per cent of the creative economy.

Although the gathering of data relevant to this industry is an ongoing process, the working group has published a number of valid statistics to demonstrate the relevance and importance of CCIs within Malta’s economy. “Economic indicators reveal that CCIs in Malta contribute to around four per cent of GDP with an annual growth of almost three per cent between 2001 and 2007. Around 4,000 enterprises are operating in these sectors with four per cent of the labour force, equivalent to 7000 individuals, registered professionals in CCIs.”

But some might question why the 2011 Budget was chosen to address Malta’s economy of culture. When contacted, Minister of Finance Tonio Fenech said that although “a high concentration of initiatives by the government relating to the culture and creative industries have been evident during the past 18 months, one must keep in mind that this has not been an accidental development. The government has been unfolding support structures for these activities through a number of budgetary measures that have been announced during the past three years.

“These have ranged from reducing or eliminating VAT payment on culture-related activity to the launching of new funding mechanisms for the arts and for film, to the inclusion of the creative industries as eligible beneficiaries for Malta Enterprise’s support mechanisms.

“By building on these past initiatives, government is ensuring that there is consolidation in this support, while reconfirming its commitment towards the creative sector.”

Mr Fenech emphasised that one must also place the emphasis on the creative economy in the pre-Budget 2011 document within an international perspective.

“Recent research has shown that the culture and creative sector has been experiencing substantial growth both locally and internationally, with new opportunities of employment and sustained value-added generation, notwithstanding the economic hardships which have had an effect on all sectors of society and the economy.

“While this is a resilient sector, employment in these industries might not have the safeguards that other, more traditional sectors tend to have. We must therefore ensure that the contribution of these industries towards a more sustainable economy is maximised, while providing for the necessary protection and recognition of professional work.

“This ties in perfectly with the overarching scope of government’s efforts in the context of the Vision 2015 exercise. The strong interdependency between a professionally-qualified workforce, a knowledge-based economic activity which relies heavily on the cultural and creative capabilities of all of society, and the impact this has on well-being and quality of life underpin the centrality of the creative economy in Malta’s Vision 2015.”

He proceeded to explain how the Budget for 2011 shall be prioritising four strategic areas in the creative economy: “The first of these is the need to further strengthen our educational structures, especially at the higher educational level, and to provide support for the professionalisation of the sector.

“The second priority focuses on the development of a range of fiscal incentives and financial mechanisms targeting the access to finance for individuals, SMEs, and organisations active in the creative economy.

“The third priority involves the identification and creation of creative clusters, providing infrastructural as well as training support for start-ups, innovative projects, and research and development by the cultural and creative industries.

“The fourth and last strategic priority highlights the need to establish a stronger, holistic governance model for the sector, with a view to minimise current fragmentation and to ensure that the best development and promotional mechanisms are adopted and implemented by the relevant public entities.

He concluded by saying that initial indications for the strategy, together with concrete measures, shall be announced during the forthcoming Budget, while the fully-fledged strategy is expected to be launched during the following months.