Issue link: https://maltatoday.uberflip.com/i/1153841
9 maltatoday | SUNDAY • 11 AUGUST 2019 DAVID HUDSON DESPITE Malta's ever-grow- ing economy, Brexit will still have a hand in disquieting that stability, both in the form of the tourism industry where Britons will find it increasingly expensive to visit the island, and firms that deal with im- ports and exports. Economist and lecturer Stephanie Fabri told MaltaTo- day that whether or not Brit- ain sets competitive trading tariffs following Brexit, the UK is likely to experience an eco- nomic shock that will trigger storms in EU countries, in- cluding Malta. "There are some risks asso- ciated with a no-deal Brexit which are likely to affect Mal- ta, like any other EU country, such as the effects it could have on tourism and trade, es- pecially firms that are depend- ent on importing and export- ing goods and services to the UK and the free movement of people. Yet the expansion in economic growth has made Malta increasingly resilient against these risks," Fabri said. She added, however, that Malta's charm needs to be pre- served to ensure that risks are mitigated. Malta needs to amp its service product and to con- tinue to be alluring to tourists. "We need to consistently focus on Malta's attractive- ness and this can be achieved by constantly focusing on re- maining competitive, on at- tracting new sectors and by focusing on continuous diver- sification of the existing sec- tors too." When it comes to the local tourism industry, the Brit- ish market is arguably one of the most reliable and impor- tant. With the devaluation of the sterling, Britons will find it more expensive to visit the island. But then again, they would find that anywhere else is likewise expensive since the UK would no longer be part of the bloc. "Goods in the UK for us will become cheaper, but for Britons, the local goods and services will become more ex- pensive," Fabri explained, add- ing that the sterling was going through increasing pressures due to the lower demand for the currency following talk of a no-deal Brexit. With a no-deal Brexit looking more likely with Boris Johnson at the helm of the British gov- ernment, campaigners warn that the cost of holidays for Brits in popular European des- tinations could soar. Amidst the no-deal Brexit rhetoric and the hardline promises to scrap the Irish backdrop, the pound was sent plummeting, with fears that it could reach parity with the euro. The sterling was, in fact, at a six-month low against the euro and a 27-month low against the dollar in the past weeks. Johnson has not ruled out using a mechanism known as prorogation to suspend Com- mons sittings in order to stop MPs from blocking a no-deal Brexit. A no-deal Brexit, far more possible now then under The- resa May's leadership, might mean that the combined in- crease in the cost of flights, hotels, insurance and mobile roaming fees could add £225 per person onto the cost of holidays to popular EU re- sorts, including perennial fa- vourite, Malta. A People's Vote campaign confirmed that this would be the likely outcome, support- ing the idea of a second ref- erendum to avoid the 'worst- case scenario' prospect of a hard Brexit. A leaked government docu- ment two weeks ago saw MPs seizing on its warning, that a no-deal Brexit could trigger food and medicine shortages and trigger riots in prisons. "There are two conflicting arguments at the moment among international experts on the impact of a no-deal Brexit. On the one hand, some suggest that a no-deal may lead to lower economic growth and productivity for Britain as the country will be losing economic benefits as- sociated with joining a trad- ing block. On the other hand, there is the argument that if Britain sets its trading tariffs at competitive rates amongst other economic decisions, the slowdown in economic growth may not be prolonged and in the long-term the economy and its productivity could re- cover," Fabri said. Both arguments suggest that the UK economy will be hard hit, at least until some element of stability is retrieved. "The British economy is likely to experience a negative shock, which means that its people are likely to suffer. The question is for how long," Fab- ri said, adding there was very little evidence of the reper- cussions of countries leaving a trading block, so the Brexit fallout is unprecedented. NEWS Position may be co-funded through European Union Funding/Bilateral Funds PROGRAMME OFFICER (EU FUNDS) Applications are invited for the positions of Programme Officer (EU Funds) in the Ministry for European Affairs and Equality. Applicants for the Programme Officer (EU Funds) position must be in possession of a recognized Masters qualification at MQF Level 6 in relevant areas plus one year relevant work experience Applications will be received at the Corporate Services Directorate, Ministry for European Affairs and Equality, 31B, Tal-Pilar, Marsamxett Road, Valletta, VLT 1850 by not later than noon of Monday 26 th August 2019. Further details may be obtained from the Government Gazette of 9 th August 2019. Application forms may be downloaded from: https://publicservice.gov.mt/en/people/Pages/PeopleResourcingandComplian ce/FormsandTemplates.aspx Further details may be obtained from the Government Gazette of 30 th Tourists' Brexit nightmare will raise price of Malta holiday Enjoy it while it lasts, but British tourists will feel the shockwaves of Brexit. (Below) UK Prime Minister Boris Johnson may find it hard to bring the EU closer to his position