Issue link: https://maltatoday.uberflip.com/i/943656
16 News maltatoday SUNDAY 18 FEBRUARY 2018 MASSIMO COSTA THAT the Maltese are having a problem when it comes to find- ing affordable places to rent is well known. But it's now emerg- ing that foreigners working in iGaming are also encountering significant problems in paying high rental fees for the island's property. We spoke to online iGaming companies based in Malta to get a perspective on how rent prices – which many say exploded due to the gaming industry itself – are proving to be a negative aspect of Malta in this sector. Alexander Stevendahl, CEO at the online casino Videoslots, said that sky-high rent costs were becoming "a big problem" which was not only af- fecting locals, but also foreigners. When it came to foreign gam- ing employees, he said it wasn't only those with lower salaries who were having problems. "It is one of the top issues we are facing on the island," Steven- dahl maintained. He added that rent prices had to be addressed "urgently", add- ing that "the current rental prices are not attractive [to the indus- try]." Similarly, Julian Perigo, man- aging director at Boston Link, said that the significant increase in rental costs seen over the last three to four years is creating an issue for the industry. "One argument is that the higher rents are caused by rising salaries in the sector; but I think there's an argument that it works the other way. Higher costs of living are driving employees to demand higher salaries", Perigo maintained. "Many workers come from overseas, often taking a pay cut in real terms. This is fine if offset by lower living costs; but we are now in a situation where foreign workers need to take a pay cut and have higher living costs than in their home country. In these cases it is proving hard to attract and retain employees in Malta," he remarked. Echoing Stevendahl's com- ments, Perigo said that the rent rates were having an impact on employees "across the board". "One of the most affected groups are workers with families who re- quire accommodation with three or four bedrooms. These workers may not be at the lower end of the salary scale, but their rental costs are now significantly higher than they were a few years ago," he said. "Malta is arguably the global centre for iGaming, so I don't think these issues will be prompt- ing any companies to reconsider their presence here anytime soon. I do believe, however, that the jurisdiction has to be careful not to make itself unattractive from a price perspective," he said. Nadine Muscat Cini, HR manager at Legolas said it was challenging for employ- ees to find suitably priced apartments in sought-after central locations. "Up to around five years ago, one could easily find great alter- natives, price and quality-wise in the peripheral areas of Sliema and St Julian's, however, these are in heavy demand now," she said. "[This issue] would affect more the medium-to-lower income earners – who actually have rela- tively good salaries." She said that the problem hasn't yet escalated to the extent of driving potential iGaming em- ployees away, but this could hap- pen in the future if the issue is not looked into. Anne Muscat Scerri, group ex- ecutive secretary at Bethard, said Malta's rent rates were compara- ble to that of London or Stock- holm. "This of course has a bearing on workers when deciding whether to stay in Malta," she said. "Many of our employees have tales to tell of incredibly greedy landlords who give no service, have poorly-built flats, but still expect an increase in rent after the contract expires." The situation from the horse's mouth Imre Guaglianone, 32, Legolas's head of develop- ment who has been in Malta for the past three years, told us that a one-bedroom 58m² apartment in Gzira costs him €700 a month. He previously used to pay €600 a month for a 250m² flat with a garage in Mel- lieha. "Rent takes up around one- third of my salary," he said, "I used to live in Bologna, where, for the same price I could have had a really nice place in the cen- tre." "I've seen rent increase signifi- cantly in the time I've been here, and costs can vary drastically even in the same area." "Malta is a great place which offered me a good job which I couldn't get in Italy," he said, "But rent is a problem." John and Lara (fictitious names), both in their mid-30s and also working at Legolas, the former living in Marsaskala, the latter in Gzira, also highlighted the difference location made to rent costs. "I'm very happy living in the south," John told us, explaining that he rented a house for €700-a- month on a one-year contract – one-third of his salary – and previously rented a one-bedroom flat in the same town for €500. "However, I wouldn't want to pay rent all my life, and it is prohibitively expensive to buy a place. I'll give it another year to see if the situation improves, and then decide whether or not to stay. "I know many foreigners who left Malta because rent is too high," he noted. Lara, who has been here for a year and a half and shares a flat in Gzira with two other people, said she paid €330 a month, bills included – one-fourth of her sal- ary – for the privilege. "I'd like to live alone, but I can't afford to pay some €700 a month," she confessed. Despite this, she said rent is currently not a make-or-break factor when deciding whether to remain in Malta. GamingMalta's reaction GamingMalta, the independent government set-up foundation promoting Malta as an iGaming hub, said their view was that rent- al costs may have a geographical element attached to them. "…the high concentration of gaming companies and employ- ees in certain areas, such as Sliema, Ta' Xbiex and St Ju- lian's, may lead to a situation where companies or employ- ees might consider alterna- tive residential areas which are nonetheless attractive, coupled with cheaper rental rates," it said. "While it is true that certain op- erators speak to us about rising rental costs, Malta still retains a competitive edge over other ju- risdictions in terms of costs," it maintained, adding that it would continue to monitor any chal- lenges to ensure Malta remained attractive for iGaming. mcosta@mediatoday.com.mt Sky-high rents now a big problem even for iGaming's foreign workers Alexander Stevendahl, Videoslots CEO, called high- rent costs a big problem which had to be addressed urgently Boston Link managing director Julian Perigo said rent rates are making it hard to attract and keep talent in Malta High rental fees might be making it hard to attract essential foreign talent and keep them in Malta long- term "Malta is arguably the global centre for iGaming, so I don't think these issues will be prompting any companies to reconsider their presence here anytime soon"