Empowering Gozo’s economy: Addressing key issues for a resilient tomorrow

Gozo, with its unique blend of heritage and natural beauty, holds immense economic potential, yet it continues to grapple with structural challenges that impede its growth. The latest surveys conducted by the Gozo Regional Development Authority (GRDA) and the Gozo Business Chamber (GBC) provide valuable insights into the pressing issues facing businesses on the island.

Here I note that while the GRDA is the driving force behind these surveys, still, I wonder why they are not including the Gozo Tourism Association (GTA) which represents the main tourism sector in Gozo. These challenges, ranging from workforce shortages and inflationary pressures to inefficient transportation systems and sector-specific struggles, demand immediate and strategic action. Without timely interventions, the Gozo risks undermining its economic resilience and stifling its future potential.

A central issue is the imbalance in the labour market caused by an expanding public sector. While public service employment offers stability and appeal, its unchecked growth is drawing a significant portion of the labour force away from the private sector. This practice, often driven by political considerations to secure votes, comes at the cost of private sector dynamism. Sectors such as tourism, manufacturing, and retail, which form the backbone of Gozo’s economy, are struggling to find the workforce they need to sustain operations and grow. This labour market distortion requires immediate policy reform.