A lack of parking spaces is prompting businesses to move out of Valletta but the Transport Ministry believes others are replacing them and this is an "important transformation" typical of historical town centres.
The parking situation is "damaging the city's vitality" and the City Gate project, currently under way, is one of the main causes, according to the Valletta Alive Foundation.
"It is pointless talking about regenerating Valletta when all decisions and actions being taken are clearly having the opposite effects," foundation chairman Alfred Zahra said.
He said it was "mistaken" and "dangerous" for town cities to focus on encouraging people to switch to public transport, because all thriving city centres required a good supply of parking, together with a pricing mechanism which discouraged long-term parking.
Chris Fenech Soler, owner of a café and a wine bar, said the lack of parking space had significantly affected business, to the point that he was considering moving out of the city. He said parking solutions should have been found before the projects of regeneration began. He added that road works were being done sporadically without businesses being notified, making the situation worse.
"I'm fully in favour of such projects but things shouldn't be done in such a disorganised manner."
Other shop owners who preferred to remain anonymous made similar complaints, pointing out that even lawyers were moving their offices out of Valletta and business had been on the decline since the introduction of the Controlled Vehicle Access (CVA) system.
One of them said he found it difficult to get to work on time and had to restrict his appointments outside the city so as not to get stuck.
Meanwhile, café owner Amanda Chircop said many of her clients complained about parking but her business depended mostly on the people who worked in Valletta, so it did not affect her much financially.
When contacted, the Transport Ministry acknowledged the parking problem but blamed it mostly on bad habits that had to change because parking could not be "conjured" out of thin air.
"The Maltese own 300,000 cars and there are 3,000 parking spaces in Valletta... (this) means the Maltese habit of being accompanied by one's car for every activity simply cannot work there," a ministry spokesman said, adding the situation was the same in Sliema, Ħamrun and other destinations in Malta and around the world.
Referring to "our national addiction" to private cars, the spokesman added that people had to start travelling by bus more often.
"We understand that public transport within the city and around it is not all it should be and we think the effort to address that problem is fundamental to the solution to Valletta and the rest of the country."
The ministry pointed out that discussions were being held to refine the CVA system and an application to extend the park-and-ride facilities had already been filed.
But "even if it were possible or desirable" to make space for a car park inside Valletta, this would simply increase congestion in roads leading to the capital, which already exceeded European norms on pollution and emissions.
"This does not mean we are faced with some sort of crisis. It may be true that a number of business activities of a certain type no longer find Valletta a suitable venue (and) seek to move out. This is not an uncommon experience for historical town centres."
The spokesman added that other businesses were being attracted to the restored, upgraded city that was relieved of the constant pressure and noise of cars, citing Merchants' Street as an example.
"This is an important transformation which is gradual and happens over time."