Retailers in Valletta saw a drop of between 10 to 25 per cent in business over the crucial Christmas period and have attributed the lost trade to fast disappearing parking space in the capital, a survey has found.
More than 350 businesses were involved in the scientific survey, carried out by the Valletta Business Community Committee, recently spearheaded by the Importers, Distributors and Retailers Economic Group of the Malta Chamber of Commerce, Enterprise and Industry to represent business in Valletta.
Now the VBCC is warning jobs within the capital’s business community could soon be at risk as traders and other operators might eventually be forced to shut up shop.
“Commerce in Valletta is being eroded,” chairman Reginald Fava told The Times Business. “Where there is no parking, there is no business. Maltese shoppers do not readily leave their cars at home. It is a culture that is difficult to change. Besides, there are other retail areas across the islands where it is more convenient for consumers to shop and Valletta is losing out to them. We could eventually see businesses closing down and jobs being lost.”
The VBCC was established just a few months ago and also incorporates the Republic and Merchant Streets business communities and the Valletta Alive Foundation. One of its main aims is to safeguard the businesses’ interests while the extensive €80 million regeneration project is underway. It prides itself on having secured alternative locations and compensation for the businesses which were forced to move out of Freedom Square before works kicked off.
Mr Fava pointed out Valletta’s commercial community was largely behind the project, but business owners were furious no alternative parking spaces were provided for the ones sacrificed and the promised 400-car extension to the park and ride facility outside the capital was yet to materialise. He added that authorities had seemingly sidelined the VBCC’s proposals to change the controlled vehicular access system in Valletta to encourage shoppers to drive into the capital.
“Statistics issued by the authorities have revealed more cars entered Valletta over the Christmas period – but the majority accessed the city for less than 25 minutes,” Mr Fava said. “It is obvious these visitors did not enter Valletta to shop. Operating in Valletta has become an absolute nightmare: it has become practically impossible to carry out maintenance or servicing during the day and unloading facilities and rules are impractical.”
He explained how Valletta’s businesses could mostly carry out maintenance on Saturday afternoons when the CVA rules were eased and it was easier for tradesmen to park nearby but calling out services at the weekend was more expensive. It had also become difficult for caterers to deliver to clients in Valletta during the week, often because of loading bays’ location.
Mr Fava praised Minister Austin Gatt’s support over the Christmas period when a concession was granted to allow shoppers to access Valletta after 3 p.m. for no charge. The initiative had helped and restaurants reported business over Christmas had been healthy.
Mr Fava, whose group of companies runs a perfumery business on Republic Street, said it was the first time in 20 years he had seen trade drop at Christmastime.
“The authorities have created parking spaces for Members of Parliament which are unused for hours on end while millions in private investment and jobs are at risk,” Mr Fava said. “It is not the recession that is damaging our business – it is our customers avoiding Valletta because they fear there will be nowhere to park. The authorities must take action to rectify this situation as soon as possible if investment and jobs in Valletta are to be safeguarded.”