Some weeks ago I wrote in my blog about the fact that retailers in Malta are missing out on a big opportunity - e-commerce. Maltese consumers who want to shop online find that there is a very limited selection of local e-stores they can shop from and the result is that they end up ordering their books, DVDs, games, toys and miscellaneous purchases from overseas.

This is clearly a missed opportunity for local businesses, as was highlighted by the statistics issued this week by Eurostat.

Companies in several countries in the European Union have embraced the internet as an extremely valuable sales tool. The study in question looked at the total percentage of turnover generated by e-commerce in businesses employing over 10 people and operating in a wide range of sectors, including among others manufacturing, construction, wholesale and retail, holiday accommodation, restaurants and real estate.

The results of the study show that Malta still has a long way to go in the e-commerce arena. Firms in countries such as Ireland have invested heavily in these technologies and are reaping the rewards, with an impressive 26 per cent of turnover originating from electronic transactions. Enterprises in Finland and Sweden have also seen the benefits of transacting online, with 18 per cent of company turnover coming from online sales. Similarly, companies in the Czech Republic, Germany and the United Kingdom are doing well online (all 15 per cent), as are those in Hungary (14 per cent) and France (13 per cent).

In the case of Malta only 11 per cent of company turnover comes from sales via websites, a clear indicator, if any was needed, that there is still a lot we need to do to reap the full benefits of e-commerce. Of these online sales, only seven per cent originate from local consumers. The message is clear - local retailers and businesses are not offering potential Maltese customers a viable alternative. Let's face it, seven per cent of the 11 per cent means that local companies are only getting 0.77 per cent of their turnover from sales made online to local customers. Surely we can do better than that!

However, what is really worrying in this scenario is not the local dimension, but the international one.

One of the most important sectors in Malta is tourism, which happens to be an industry which has been revolutionised by the internet.

In fact, a study published recently by the European Travel Commission predicts that in 2010 over one-third of travel bookings made by Europeans will be organised and paid for online - growing from 28 per cent in 2009. In fact, as European consumers become more price conscious they will spend more time shopping online for better travel deals.

In countries such as the UK, which is traditionally a target market for Malta, over 40 per cent of holidaymakers book their vacations online.

France and Germany are also catching up. However, if we refer to the Eurostat findings, only 37 per cent of the 11 per cent of online turnover comes from EU consumers i.e. a paltry 4.07 per cent of total corporate turnover. This is clearly an important opportunity for local tourism operators - one that they simply cannot afford to miss out on.

In the last couple of years the government has launched a wide variety of schemes to encourage local businesses to invest in e-commerce.

An example is the ERDF e-Business Development Grant Scheme operated by Malta Enterprise. Several organisations have already received funding under this scheme and a call is now open for organisations who want to invest in e-business technologies. The Malta Tourism Authority also offers various schemes to help local tourism operators invest in their online presence.

The likelihood is that as time goes by and the financed projects are launched we will see a quantum leap in the quantity and quality of local e-commerce offerings. This will be a win-win scenario for companies and consumers alike.

Ms Cassar is the managing director at Alert Communications, a local web development company.