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02.07.2020 3 NEWS FROM PAGE 1 "ose worst are affected are business- es that entered into rent agreements in recent years, when the rents have sky-rocketed as many landlords have tried to make a quick buck off the for- eigners wishing to open a business in Malta," an industry insider said. Of the handful of shopping destinations available, Sliema is considered to have fared best in the run-up to Father's Day two Sundays ago, albeit only averaging around 40% of sales that businesses are accustomed to around this time of year. Valletta is the locality where retailers appear to be the worst hit, with coffee shops in the capital city believed to have averaged as low as 15% of their normal turnover on the same Sunday. One exception stands out, the sources said. Retail outlets at PAMA Shopping Village in Mosta seemed to be enjoying brisk business, boosted by the the im- mediate access to the supermarket and ample parking space, a huge attraction to shoppers. e sources said that the businesses closing down were mainly in the cater- ing industry. An importer and distributor of cof- fee-making equipment and supplies re- ported many clients forfeiting payments during the lockdown, as well as a num- ber of clients even returning the equip- ment itself as they were forced to close their doors, no longer able to sustain the heavy losses they incurred in the past few months. One industry insider said that rents – more than anything else – seemed to have played a pivotal role in whether a business survived the lockdown or not. "Intelligent landlords immediately re- alised that they needed to work with their tenants in the interest of both parties," they said. "Others insisted that their tenants continue to pay the full rent even during the lockdown and that drove many businesses into the ground, and leaving the landlords with no in- come too." e number of actual staff layoffs seems to have been mitigated by the aid offered by the government in its economic measures aimed at assisting businesses during the coronavirus pan- demic. e sources agree that the outlook for Valletta does not look too bright at the moment. Tourism minister Julia Farrugia Portel- li announced on Tuesday that 700,000 tourists were expected to visit Malta this year, as Malta re-opened its doors to tourism yesterday – down from 2.7 million last year. Valletta will once again be the worst hit locality with the reduced number of tourists. One industry insider said that he cal- culated that some 70% to 80% of Val- letta's business depended on tourists, including cruise line passengera visiting on day trips to the historic capital. "I would say that Sliema, another shop- ping mecca, only depends on tourism for around 50% of its business," they said. "is means Sliema will fare much better than Valletta as we come to grips with welcoming only around 26% the volume of tourists that visited Malta last year." Valletta to be hard hit by low tourism numbers MALTA Employers Association Presi- dent Doris Sammut Bonnici says having the country grey listed by Moneyval, could be as devastating as the coronavi- rus pandemic. "Unfortunately, Malta's image has been devalued as the country has been rocked by a successive series of scandals that have drawn the attention of the international media," Sammut Bonnici said. She went on to say that no matter how resilient the economy, it would not withstand the contraction of the finan- cial and igaming sectors. "Businesses and people will suffer if this scenario becomes a reality," she said. Sammut Bonnici was speaking during the MEA's 55th Annual General meet- ing. Praising the government for the man- ner in which it handled the coronavirus pandemic, she warned that such efforts would be in vain unless the country "takes some hard and radical decisions to restore good governance in its insti- tutions." Referring to proposals presented by the MEA, Sammut Bonnici said the association had recommended few- er member on a full-time basis, while calling for a pay structure which truly reflects the responsibility and account- ability expected from such positions. "Members of Parliament simply can- not hold positions of trust, especially when it is common knowledge that this practice is there to boost the income of the members of parliament of the gov- erning party," she stated, while insisting on transparency and control in the en- gagement of persons of trust. "How can employers take government seriously about promoting pay trans- parency when it refuses to disclose the packages of persons of trust who are paid from taxpayers' money?" e MEA President also pointed out that it has become evident good gov- ernance depends on the separation of party financing from corporate dona- tions or coercive practices like door to door collections. "is is the reason behind MEA's pro- posal to introduce partial state funding to political parties, and that it could also be the right time to do away with politi- cal party media." She concluded by stating there is no longer time to debate such issues, say- ing employers have an obligation in voicing warnings on the consequence which might arise if things are patched up, instead of having problems properly addressed. Moneyval grey listing could be as devastating as COVID crisis, MEA President says MEA President Doris Sammut Bonnici

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