Issue link: https://maltatoday.uberflip.com/i/1523891
6 gozotoday | FRIDAY • 12 JULY 2024 Q & A What are the biggest challeng- es businesses in Gozo face? From the Gozo Business Sen- timent which was published last June, the biggest challenges faced by businesses in Gozo are the lack of suitable employees to man their operations, and the relevant cost pressures deriving both from the developing inter- national scenario and Gozo's double insularity. While Gozo is not in any way immune to the cost pressures deriving principally from the post pandemic increase in in- ternational prices which were inflated by the war in Ukraine, an enterprise situated in Gozo has to face the increasing cost pressures derived from its geo- graphical location. For any en- terprise situated in Gozo this means added costs in terms of hours waiting at the Ċirkewwa and Mġarr ferry terminal which have to be factored in. Today a large number of en- terprises situated in Gozo compete on a national level. Consequently, despite facing increased costs when compared to their Maltese counterparts they have to remain competi- tive. This means that Gozitan based enterprises have to be much more efficient and cost conscious in order to retain a healthy profit margin while re- maining competitive on a na- tional level. How relevant is Europe to a small Island like Gozo? Europe is very relevant for an island such as Gozo. The Chamber has been very active in the Network of the Insular Chambers of Commerce of the European Union (INSULEUR) for the past years. In fact, it has had the Presidency of this network since 2018. From our experience in this organisation we could notice first hand how relevant the outcome of the European Union's strategy and policy is for islands. In the case of islands, many a times at an EU level what are considered as disadvantaged, are those islands which are found in the outer most part of the European Union. Islands such as Gozo or the Greek is- lands, which are not found in the outermost part of the Euro- pean Union, but which are still peripheral because of their geo- graphical conditions, fall by the wayside. It is therefore impor- tant for islands such as Gozo to have a strong voice at an EU lev- el. At an institutional level one can see the Island Commission of the Conference of Peripheral Maritime Regions. The Ministry for Gozo forms part of this organisation. At an economic level there is IN- SULEUR. Both organisations work strongly for the islands di- mension to be considered when drafting policy at an EU level. Is enough being done to attract business investment to Gozo? What can be done? We already have a situation where all the incentives pro- vided have a higher threshold for Gozo-based enterprises. However, while I believe this is important and needs to be re- tained, we need to move a fur- ther step ahead in that we need to have a regional economic policy for Gozo. We have seen a step in the right direction with Gozo's Re- gional Development Strategy. Now we need to see that this strategy translates itself into concrete actions and policies. However, we cannot remain only at the economic level. Gozo will be an attractive busi- ness destination if it also offers a good quality of life. To this end we need to see that this regional outlook trans- lates itself into concrete actions and policies at every level, be it planning and social policies. The economy and society need to move hand in hand. And this applies also for Gozo. I also believe that we need to work on economic niches which would be specific to Gozo. The example of the Queen Mary University of London has shown that high value-added sectors can be located in Gozo with the right infrastructure and incen- tives. This medical university has been highly successful, and this has shown that such ven- tures are possible for the island. The Chamber believes that there are other sectors which have huge potential for the is- land especially in the green economy. The Government has highlighted that it wants Gozo to become carbon neu- tral by 2030. The Chamber be- lieves that Gozo can become a 'Erroneous planning policies have not safeguarded GozoToday speaks to DANIEL BORG, Chief Executive Officer at the Gozo Business Chamber, about the challenges Gozo businesses face on a daily basis, attracting more business investment to Gozo and the pros and cons of a permanent link between the islands