Issue link: https://maltatoday.uberflip.com/i/370348
10 Business Today maltatoday, WEDNESDAY, 27 AUGUST 2014 Financial services account for 70% of foreign investment in Malta The National Statistics Offi ce said that as of December 2013, the stock of for- eign direct investment in Malta was estimated at €9.6 billion, with 70.6% originating from fi nancial and insurance enterprises. This amounts to a decrease of €3 billion over the position as at end 2012. Geographically, the EU is the largest contributor to Malta's inward foreign direct investment, with €6.4 billion, or 66.2 per cent of total FDI. There was a net decrease of €1.6 billion in FDI flows, whereas the corresponding period in 2012 showed an increase of €0.1 billion. These were mainly the result of decreases in equity capital, mainly from entities involved in financial and insurance activities. During 2013, direct investment flows decreased by €13.9 million, compared to a decrease of €35.6 million during the previous year. This was mainly the result of a decrease of €4.5 million in equity capital and an increase in payables to direct investors of €21.5 million. In terms of stock positions, in December 2013 direct investment abroad by resident enterprises was estimated at €1.1 billion, of which €0.6 billion were invested in the EU. As in previous years, direct investment abroad was predominantly in financial and insurance enterprises, these accounting for over 47.3% of total stock as at end December 2013. Malta to receive more EU funds from LEADER programme Chamber of Commerce calls for sustainable public sector jobs Tim Attard Montalto Craftsmen and women and tradition- al artists are set to gain from an in- crease in the LEADER programme, funds allocated by the European Un- ion to improve rural areas and help to generate more money in the rural economy. The increase in funds was announced this morning by the Parliamentary Secretary for EU funds, Ian Borg. He explained that whereas Malta received a sum of €4 million in the seven-year period between 2007 and 2013, the EU will now be allocating a total of €7 million for the upcoming seven-year timeframe. Of that amount, €500,000 will be put aside specifically for the arts and crafts sector. Borg made his announcement during a visit to Gilder Vassallo in Rabat, owned and manned by Arthur Vassallo, who will be benefitting from €5000 of these funds to carry out his gilding restoration trade. Vassallo has been specializing in the building and restoration of traditional clocks for the past ten years. Persons interested in applying for the grant are asked to do so prior to 21 September and their projects must be completed within a six-month period. The Malta Chamber of Commerce, En- terprise and Industry called for a sustain- able approach to recruitment in the pub- lic sector. Acknowledging in a statement the importance of employing new blood in the public sector – to help inject new ideas and management practices – the Chamber also recommended a manpower survey. "In recommendation 49 of the Economic Vision for Malta 2014- 2020, the Malta Chamber suggests the government should carry out a manpower survey and gap analysis so as to take stock of the exact manpower skills available in the public service," the statement reads. "This will enable the government to deploy its present and future resources more efficiently into productive activities and will also assist in recruitment decisions for the public services." The Chamber also said it was aware of the importance of ensuring enough resources to fulfil the roles for which the public sector is responsible, especially in cases where certain vital departments operate with a capacity deficit. However, it called for a careful balance against the impact on public finances and in turn, the effect on national competitiveness through the added tax burden generated, and discouraged public sector employment for unjustified reasons. Tourist arrival fi gures go up in June Restaurant owner is new MHRA president Matthew Pace (right) has been unani- mously elected as the 20th President of the Malta Hotels and Restaurants Asso- ciation (MHRA) following the appoint- ment of former president Paul Bugeja as new Chief Executive Offi cer of the Malta Tourism Authority. With 28 years' experience in retail and catering businesses, Pace is currently the owner of 47 Summer Nights Restaurant in Marsascala, and Comfort Inn, Sliema. Pace has been an active MHRA Council Member for the past five years during which time he chaired the Restaurants Action Group. He has also represented the Association on the ITS board and various fora, seminars and conferences. "Matthew is the first ever independent restaurant owner to be elected as MHRA President which demonstrates the dynamism and versatility of the association. Indeed, Matthew has the necessary qualities and competence to be the standard-bearer of the tourism industry in Malta and enjoys the support of all the MHRA members," outgoing MHRA president Paul Bugeja said. Tourism minister Edward Zammit Lewis welcomed Pace's election at the helm of GRTU and said that the restaurateur has the necessary qualities and experience to lead the largest non-governmental organisation in the tourism sector. Zammit Lewis added that he looked forward to work closely with Pace and MHRA "for the benefit of the tourism sector." Total arrivals in collective accom- modation establishments during Au- gust numbered 157,409, while total nights spent amounted to 884,686. The largest share of guest nights was reported in 4-star hotels, accounting for 414,939 nights, or 46.9% of the total. The average length of stay in collective accommodation establishments went down from 5.9 nights in June 2013, to 5.6 nights during the month under review. The net use of bed-places stood at 72.1%, up by 0.1 percentage points when compared to June 2013. On a national level, there were 166 active accommodation establishments during June, with a net capacity of 18,564 bedrooms and 40,936 bed- places. On average each establishment had 2.2 beds per room. Total arrivals and nights spent during the second quarter rose by 8.9 and 3.7% over the corresponding period last year, to 457,189 and 2.5 million respectively. Nights spent by non-residents advanced by 3.6%, whereas resident nights went up by 8.2%. The occupancy rate for the quarter under review was estimated at 67.6%, 3.0 percentage points more than last year. Total arrivals during the first six months amounted to 719,697, an increase of 9.5% over 2013. Total nights spent went up by 3.4%, reaching 3.8 million. The net use of bed-places went up by 2.6 percentage points to 56.1%. "These positive figures bode well for the accommodation industry, particularly in Gozo," Tourism Minister Edward Zammit Lewis said. "They also confirm the importance of the domestic market in Malta's tourism sector, as well as the importance of working towards a higher quality of tourism." "The Government is committed to improving the tourism sector, both to enhance the Maltese economy and to create more high-quality jobs for the Maltese people." 15% more people stayed at five-star Gozitan hotels last month than they did in June, 2013. Also, 15% more foreign tourists stayed in Gozitan five-star hotels between April and June this year, when compared to the same period in 2013. In this same second quarter of this year, the amount of nights that Maltese people spent in collective accommodations increased by around 8%. The amount of nights spent by Maltese people in Gozitan accommodations increased by around 18%.