Baron Group directors Xavier Tabone and Anthony Ellis admit they have experienced "some exciting times" in the 20 years they have been in business.

The group, which began as a small turnkey operation in Gozo, has since grown into a network of companies with interests as diverse as real estate, tourism and financial services.

Construction work on Hillock Residences in Marsalforn, a major Baron project, is to kick off soon and the directors promise it is to be a "large project", both in terms of extent and in value.

But in the early days, attracting the first home refurbishing jobs and getting involved with clients, suppliers, pricing and deadlines, and actually making a profit, meant a steep learning curve for Mr Tabone and Mr Ellis.

"We learned some lessons over the years, but we must have been doing something right when eventually we were awarded a local bank branch turnkey refurbishment contract: it was such a complex and demanding job for a small company in Gozo. That gave us a lot of satisfaction and encouragement, and it put us on the map with people who mattered."

By then, the company had already ventured into the property developing business in Gozo and made a name for itself. Branching out in Malta under AXT Properties Ltd in 2003 was a natural progression. The company made its mark in Malta with an ambitious development - The Waterside in Qui-si-Sana - and people took notice.

Baron Group has gone on to handle several projects: villas and apartments, converted farmhouses, and features like millrooms and even barns have been transformed into functional living spaces. Baron Homes' restored farmhouses are scattered among the villages of Gozo. The group prides itself on introducing modern ideas and state-of-the-art structures, materials and finishes in prime localities. It boasts pioneer status after having incorporated environmental and security concepts in high-rise projects.

Meanwhile, the group has ventured into insurance and is now seeking to make further inroads in financial services.

"We hit on the idea of branching out into the insurance business when our real estate clients kept asking us for these services," Mr Tabone and Mr Ellis said.

"We thought about providing our clients with a one-stop shop. We now have a core team with the right qualifications and experience. While we have established ourselves in the insurance field, the natural progression would be to offer an expanded financial services base. This is obviously a fast-growing and competitive industry, and there is always a niche for a professional, well-run organisation."

Hillock Residences in Marsalforn were launched on the market earlier this year. The Baron directors said the dismantling and demolishing of the existing building has started and a team is geared to start the building of the residences very soon.

"An expert team of architects, project managers and contractors have been assigned to this development and with our direct involvement, we will ensure this development is delivered in time and to budget," Mr Tabone and Mr Ellis explained. "The project can be considered large both in its extent and in value, but when one dissects it compares well with other developments of note."

They said that in spite of their high specification, the properties are being marketed at mid-range prices. They are confident the development should attract a cross-section of clients: Gozitans looking for a seaside apartment for the summer months, Maltese buyers seeking a second home, and foreign investors, even first-time buyers.

The directors explained that the project, which incorporates several eco-friendly aspects in the design, materials and equipment used, consists of two main units of apartments opposite each other, each creating its own select 'address', with advantageous views. The development incorporates elegant entrances and wide internal spaces.

Ownership of a Hillock Residence comes with a property management package including concierge and maintenance backup.

Within another arm of the business, Baron operates several holiday options in Gozo. Asked to describe summer 2009 in terms of occupancy and demand, the directors explained that after having introduced new concepts in farmhouse-style accommodation complemented with a personalised service, the group still managed an increase in occupancy without sacrificing rates, even in the difficult global situation.

"This didn't come without effort, but we believe the experience has strengthened us especially in polishing up our rental section to its maximum efficiency, looking for new markets, and in using modern marketing techniques."

But with cut-price short breaks overseas becoming more accessible, does Gozo have to step up its efforts to be more competitive?

Baron Group believes Gozo is a unique experience in itself, but it is mindful of the fact that local and overseas customers are spoilt for choice with wider destination options in various price brackets.

"Gozo must knuckle down and improve its package all round, starting with its accessibility and service," Mr Tabone and Mr Ellis pointed out. "And not just in the hospitality industry, but service across the board; not least in the information services, policing and the transport system. A Gozo experience incorporates its scenic beauty, its architecture, its culture and history, as well as its captivating laid-back lifestyle. But it also comes as a package and every little thing impacts on its delivery. It is important that everyone, from its government and business leaders to each individual, understands this and rise to their responsibilities."

The sister island can compete strongly as a winter and shoulder-month destination due to its mild climate and relaxed ambience. As Gozo has witnessed great improvement in quality in cultural and historical events over the past years, Baron Group says it has invested in standards at its homes. These efforts have been met positively by international partners and the group is confident about business in the coming months.

The directors believe the authorities need to decide where best to direct Gozo's limited resources. Gozo needs particular focus as a tourist destination: the island's infrastructure, they caution, does not cater for sharp bursts of tourists over a short season and it is self-defeating to try to build numbers, sometimes at the cost of standards.

"We need to aim for the Gozo-based tourist," they point out. "The tourist needs easy and direct accessibility throughout the year with an airstrip, upgraded infrastructure, like roads, organised beaches and tourist sites, and more facilities such as modern marinas and parks."

Mr Tabone and Mr Ellis believe marketing should be focused, and target markets for events need to be properly identified. Standards should be regularised and graded, especially in rental accommodation, which now accounts for a significant portion of the industry. The authorities should incentivise small operators to upgrade their units and issues surrounding sub-standard ones should be addressed.

"Gozo is ours to enjoy and ours to make a living from," they said. "We should nurture it and make it as unique a destination for our visitors as possible."