Issue link: https://maltatoday.uberflip.com/i/811845
maltatoday, SUNDAY, 16 APRIL 2017 News 13 How sustainable is all this retail? It remains unclear whether sufficient demand exists for the further growth of this sector, although the appetite for land seems insatiable. "While demand is growing strongly, there is little by way of indication of whether supply is keeping apace in a sustain- able manner," economist Gor- don Cordina told MaltaToday, who said that what should really matter is that development and operating permits take a "holistic view" of the economic and social impacts of these projects, also within the context of other devel- opments in the country. "This is therefore a question of ensuring that the right processes and ex- pertise are in place to ensure that projects are complementary and sustainable." Operators in the sector like Chris Grech of Bay Street, had already recommended a more coordinated approach to devel- opment. In 2016 the real estate entrepreneur told MaltaToday that mega-developments would double retail space already exist- ing in Valletta and Sliema com- bined, questioning whether there was even enough growth to justi- fy such an increase in retail space. But Grech's recommendation was not that of stalling develop- ment but to get the right mix be- tween office, residential and re- tail in new development projects, particularly in high-rises. One retail project that failed to take off had been earmarked for Smart City in Kalkara, once set to become Malta's biggest shopping centre, with over 21,000 sq.m of retail space approved in 2008. But even its own environmental im- pact assessment had cast doubts on whether sufficient demand ex- isted for the project's retail com- ponent. "The scale of the oversupply suggests that significant displace- ment in retail spend from other areas would be required to sus- tain the level of retail planned," the EIA stated, suggesting that shopping malls will only be devel- oped if other retail developments fail to materialise or if there is "a national increase in spending power." And a fear of a retail bubble due to this new oversupply can only be countered by tapping into particular niches in the market, like the demand for luxury goods by high spenders propped up by high value-added industries like financial services and gaming. Shopping and parking Undoubtedly a concern about the opening of shopping malls is that it drives small shops in resi- dential centres out of a shrinking market. But Paul Abela, the presi- dent of the small business cham- ber (GRTU) says the opening of new shopping malls like Pama are a "great success", only noting that the demand for these new at- tractions is marked by whichever outlet is well-served by parking facilities. "It is high time that accumu- lated funds from the Planning Authority's commuted parking scheme are put to use to create car parks in localities like Mosta and Hamrun," Abela told Malta- Today of these important high streets. Abela attributed the success of self-contained malls to the trans- formation of shopping into "an experience", where people park their cars and alternate between shopping and other recreational activities like eating out and hav- ing a coffee, while children can have fun in recreational areas. "The future of high street shop- ping in various towns depends on improving the infrastructure to offer shoppers a more wholesome experience," Abela said, insisting that urban regeneration projects such as those in Paola and Mosta must include new car parks. But building more car parks and shopping attractions in city cen- tres also attracts more traffic in already congested areas, a point made by Green Party secretary- general Ralph Cassar in reference to plans for a new car park in Mo- sta. Even building retail centres right outside established urban areas, could increase traffic and extend urban sprawl as demand grows for other facilities like pet- rol stations in their vicinity. "A real vision would have been to pedestrianise the centre of Mosta, creating a park and ride system from the periphery into the centre, and through real and targeted investment in infra- structure and incentive encour- age people to take up bicycles and pedelecs and boosting public transport provision to and from Mosta," Cassar, a local councillor for neighbouring Attard, said. These far-reaching plans how- ever appear not have captured the imagination of planners and policy-makers. jdebono@mediatoday.com.mt the high rise. "We did not want to create a new shopping mall. We will be creating a pedestrianised space where peo- ple can continue their shopping experience while walking along Sliema's streets," project architect Martin Xuereb told MaltaToday in 2015. ITS: A shopping mall in the golden mile The shopping mall included in St George's Bay high-rise develop- ment over the site of the Institute for Tourism Studies will cover al- most 24,000 sq.m on three levels and will be "solely dedicated to the most luxurious designer brands, in line with the recurrent upmarket theme of the project", according to a proposal presented to the gov- ernment last year. The Big Bon Group, owned by Bernard and Mario Gauci, is lead operator for the mall, which is seeking brands not yet with a Malta presence. Big Bon has al- ready taken over 2,400 sq.m in The Point shopping mall in Tigné. The remaining outlet space will be allocated to high-street fashion outlets, other branded retail stores offering cosmetics, home furnish- ings and tech gadgets, cafés and other refreshment and entertain- ment establishments. SKYPARKS: Shopping next to airport A master plan proposing the demolition of the existing Malta International Airport complex and its replacement by office and retail blocks, a hotel and recreational areas is still being considered by Planning Authority. The project includes 16,800 sq.m of commer- cial space. The new development would include commercial cen- tres, which would incorporate both commercial and office space and showrooms. WIED INCITA: Some shopping next to warehouses Construction group Bilom has also included 7,460 sq.m of retail in a proposed industrial park for SMEs over 158,000 sq.m on a site currently taken up by quarries in Wied Incita, Attard. A 2,550 sq.m family recreation park is proposed next to the shopping area. GZIRA Shopping on Manoel Island In 2012 the PA approved 6,320 sq.m of retail in the Lazzaretto development by MIDI in Manoel Island, alongside 54 apartments, a 2,868 sq.m casino and a 1,950 sq.m hostel. New plans presented recently by MIDI foresee a water- front mix of catering, retail and recreational facilities. Manoel Island Mega-developments could double retail space already existing in Valletta and Sliema combined, questioning whether there was even enough growth to justify such an increase in retail space.