Doing business in Gozo has never been easy despite the idyllic setting of the island. The local market in Gozo is far too small. Looking at the larger Maltese market and beyond presents formidable challenges mainly related to transport connectivity. So Gozo businessmen often rightly claim that they need to be supported to overcome the challenges of insularity and see their businesses prosper and generate jobs.
The Prime Minister, speaking in the first Gozo meeting of the Enterprise Consultative Council, reassured the business community there that the government will continue to look at Gozo as a special case when it comes to granting concessions or “privileges” to Gozo businesses. He also confirmed his commitment to see more national investment in the infrastructure going to projects in Gozo. As proof of the special attention being given to Gozo, the Prime Minister quoted a figure of 400 companies based there that had applied for funds under the Micro Invest Scheme, which is operated by Malta Enterprise.
Initiatives to encourage business growth at the micro economic level are indeed worth encouraging. But, on their own, they are not enough to see business in Gozo flourish in a sustained way.
Economic strategies for Gozo are announced from time to time. The Eco Gozo concept encapsulated a vision based on exploiting the island’s natural beauty and commitment to preserve the environment for promoting economic growth. However, this vision has never really been followed up by a detailed action plan defining the tactics that had to be adopted to achieve this aim.
Gozo has its particular economic strengths and weaknesses that are not necessarily identical to those of Malta. As a very small island with limited human resources, it needs to target those areas that it can excel in.
The educational achievement levels in Gozo are possibly superior to those of Malta and, as such, the island can concentrate on micro businesses that could add sufficient value to compensate for the higher costs caused by Gozo’s double insularity. Niche tourism, specialised boutique IT services that can be delivered online and a small range of medical care services could be some of the opportunities that can exploit Gozo’s unique mix of strengths.
One risk that could jeopardise Gozo’s future economic prosperity is over-reliance on connecting the island to Malta by means of a tunnel. The Prime Minister gave a guarded reply when asked what his plans are for connecting the two islands.
Some argue that connecting an island with a population of just a few thousands with another island that still has less than half a million inhabitants may be technically feasible but it may never be financially so. It will be a shame if the renewed interest in connecting the two islands physically turns out to be yet another red herring that distracts attention from the more important business of defining an economic strategy for Gozo.
It will be similarly futile to promise employment to all Gozitans in Gozo. However much Gozo residents love their beautiful island and want to enjoy the high quality of life that it offers, it may not be realistic to generate job opportunities that fit the expectations and qualifications of every Gozitan who prefers to work there.
Many successful professional people from Gozo would admit that job mobility has done their careers a lot of good by exposing them to the wider experiences of working in Malta or, indeed, abroad.
Beyond micro incentives, Gozo also needs a sound economic development strategy.