In this interview, Mr Ronald Sultana, who has occupied the position of Director of the Tourism and Economic Development Directorate within the Ministry for Gozo and Planning for the past five years, shares his insights on the island’s evolving economic landscape and the strategic role of InvestGozo. From investment incentives offered through the Directorate and in collaboration with other business entities, to the quality of life, sector diversification, and sustainable development, he outlines how Gozo is positioning itself as a forward-looking, resilient, and attractive destination for business and innovation.
Why is there the need to have InvestGozo?
The Ministry for Gozo and Planning has, for several years, been offering incentive schemes aimed at supporting Gozo-based businesses. These schemes have evolved over time, expanding in scope to reflect the changing dynamics and development of the island’s economic ecosystem. What is certain is that these schemes have not only increased in number but have also broadened in reach, providing more opportunities and greater financial support for those investing in Gozo.
Acknowledging the need for clear identification and greater awareness, the brand InvestGozo was created. This platform allows us to extend our reach into the digital space and communicate our objectives and supportive offering more effectively. In addition to its website and social media presence, InvestGozo has taken further steps to enhance networking on the island. Primarily, this initiative began with the launch of a business conference held last March, to which a very healthy mix of economic sectors and entrepreneur demography attended and actively participated.
InvestGozo also serves as a point of contact for a wide range of queries and matters brought forward by businesses and stakeholders. As a new and upcoming brand, it carries the responsibility of remaining receptive to evolving economic and political conditions and ensuring its continued relevance to its mission.
How does your organisation view Gozo? Is it given special treatment?
There are both opinions and facts to consider in this answer. Starting with my opinion, taking note of the fact that Gozo is a small island within the smallest EU member state, which is additionally a peripheral EU state, geographically positioned almost halfway between Europe and Africa, the progress the island has achieved across societal, economic, and political dimensions is an important one. What is commonly mentioned is that, especially when compared to other islands of similar size and profile, the progress is quite remarkable, especially noting in what timeframe this was achieved.
Turning to facts, Gozo’s GDP increased by 74% between 2017 and 2023, with a workforce that also grew by 43%. There is that logical formula going on: the greater the economic activity, the higher the inclination and trust in investment, which in turn requires a larger workforce.
Gozo’s economic development is not coincidental. Malta as a country has enjoyed tremendous economic success in recent years, and there is obviously that momentum that has contributed to growth in Gozo as well. Several Governmental interventions have supported economic growth, but equally important has been the determination of the Gozitan businesses, who have continuously seized the opportunities presented to them. This has helped create a positive and ongoing cycle of growth and success.
What is you organisation’s role in Gozo’s business ecosystem?
InvestGozo is one of many entities under the Government’s umbrella with the mission to support the country’s economic growth and development. While InvestGozo has a regional outlook, it collaboratively works with pertinent national entities to further promote and assist the local business ecosystem. The idea is not to replicate what is already available but to supplement with additional incentive schemes to further render attraction in investment in the Gozitan business ecosystem.
What kind of help is available?
InvestGozo provides information and assistance on a number of schemes administered directly by the Directorate for Tourism and Economic Development within the Ministry for Gozo and Planning, including grant schemes that are specifically designed to support operations based in Gozo.
In addition to our own incentives, we also aim to inform users about the wider ecosystem of support available from national-level entities, which offer a range of operational and investment incentives that apply in both Gozo and Malta. While we do not administer these national schemes ourselves, we help clarify the landscape and, where necessary, guide individuals toward the appropriate entities for further assistance.
Briefly highlighting some of our incentive schemes:
- Supporting Sustainable Quality Employment in Gozo – This scheme offers partial salary reimbursements to Gozitan businesses employing workers on the island. The reimbursement rate increases for employers offering higher wages, replacing the previous flat-rate system.
- Knowledge-Based Sectors Scheme – This initiative supports knowledge-based businesses that hire employees with specialised academic backgrounds, offering competitive incremental reimbursements to sustain job creation.
- Tourism Industry Schemes – Schemes are available mainly in support to promote the touristic product.
What are the key sectors or industries that your organisation is currently focusing on vis-a-vis Gozo?
In Gozo, discourse about diversifying the economy is frequent. A diversified economy depends on various factors and its definition and rates of acceptability on an island of just 67km2 may be viewed differently to other places of different composition.
Two industries that have historically played a major role in the island’s economic development are Real Estate and Tourism. Both industries have blurry confines and have significant contributions to other economic industries. Both industries have eased a proliferated stock of local SMEs, entrepreneurship, self-employment and re-investment as a perpetuating cycle of success, apart from mentioning the employment opportunities that have been generated throughout the years. We are now at a point where both industries claim that recruitment of human resources is a challenge, both in numbers and skills.
In recent years, several targeted Government interventions have rendered the island more attractive and operational for certain knowledge-based sectors. The Government has significantly invested in ensuring that Gozo has a highly reliable network system with the installation of a second fibre optic cable. The Gozo Innovation Hub is another Government investment which lays the foundations towards stimulating investment in tech and other similar areas. These investments have to be continuously supported by other targeted interventions to maximise the return on the investment made. Additionally, tailor-made incentive schemes have been launched to further support certain knowledge-based sectors.
In what ways does Gozo’s emphasis on work-life balance and quality of life enhance its attractiveness to investors and residents?
Measuring well-being or defining quality of life is constantly discussed at many levels. These terms are often associated with financial income, which undeniably is an important variable. As I see it, it’s an aggregate of many things. Other important variables which Gozo has to offer to its residents are several. For starters, stability, safety and low crime rates are underlying principles. Furthermore, it is an island which has a great ambience to raise children, schools are in practically all villages. Anywhere you live, you’re just 10 minutes away from the coast or the beach, and the same goes for the General Hospital. The climate is great and the food is wonderful. You can feel that local communities remain strong and are welcoming. It’s an island that is enjoying remarkable economic growth and close to zero unemployment.
While connectivity is actively discussed, vessel trips between Malta and Gozo are very frequent, with an annual average of 90 trips a day between Malta and Gozo. All in all, I firmly believe that Gozo has many ingredients that can positively contribute in the quality-of-life discussions.
One of Gozo’s main strengths is the island’s way of life. It’s typically different and one that is more subject to tranquillity, even if it may seem to be busier than to how it was traditionally known. Gozo is not cosmopolitan and has its own unique characteristics. The island’s size can, in some respects, be seen as a disadvantage, but in many other instances, it proves to be a great advantage.
Is there a balancing act when it comes to economic growth and preserving the island’s natural beauty and cultural heritage?
A reconciliation between what is ideal, necessary, and permissible, together with the constant essence of economic growth is imperative. One must spur the other, and this can only be done with a clear vision by the Government.
The Gozo Regional Development Authority has vowed to ensure the latter with its strategy for Gozo in the next ten years. It is a living document, one that will not be placed to accumulate dust on a shelf for the duration of its lifespan, but rather is constantly being updated to reflect the Gozitan’s societal progress. Branded as the “island of villages”, this demonstrates that the direction is towards preserving natural beauty and cultural heritage, while the measures within, continue to target economic diversification and development. This stance acknowledges that preservation and economic development should not contradict each other.
We often hear about brain drain from the island. How does InvestGozo address this?
I avoid using the phrase “brain drain”, for the simple reason that it normally correlates to something negative. I prefer to use the words ambition and experience. I cannot exclude or fail to acknowledge that many of those who leave this tiny island are doing so to fulfil their own career aspirations in the belief that elsewhere provides greater opportunities. Others seek a different way of life, shifting out of their comfort zone, maybe in search of a more fast-paced environment. At the same time, I find it commendable that one seeks a new adventure that enriches his or her portfolio. However, I am confident that many become nostalgic of their island, also perhaps due to family ties.
An undeniable truth is that Gozo produces a decent number of tertiary education students in relation to the ratio of its population and certain jobs are no longer occupied by Gozitans. This means that Gozitans are eyeing different job profiles, and at the same time local entrepreneurship in certain knowledge-based areas has somewhat increased. This is why, last year, InvestGozo launched the “Supporting Knowledge-Based Sectors in Gozo Scheme”, offering financial support of up to €8,000 per year per recruitment to employers in these sectors. The aim is to enhance competitiveness in salary offerings, which in turn contributes to more stable workplace environments and creates room for further recruitment and investment.
Going forward, what are the main challenges that the island of Gozo is facing?
Every country, region, city, and island has to deal with their own unique set of challenges and others that are mutual. Some may be rooted in history, shaped by geography, or resulting from a combination of various factors.
While acknowledging this, we should always relentlessly strive to improve what we have and define clearly where we want to go. While one can mention a couple of different segment challenges, I’d prefer to pinpoint two generic ones.
One definite challenge is how to deal with the constant change of times and how that infringes with the status quo. The key is to ensure that change brings positive impacts. The island’s worth is maintained as long as it remains authentic, where its cultural and traditional values continue to define the identity of its people. Secondly, there is the ongoing need to adapt to challenges that naturally arise from the island’s limited size. Something that becomes increasingly evident, albeit for a positive reason is the growing visibility and popularity of Gozo, which continues to attract more visitors. The key is to ensure that their experience remains a high-quality one.
What advice would you give to international and local investors considering Gozo as their next business hub?
One of our remits is to promote Gozo, and therefore, I have a professional but also a personal bias being from the island. But I definitely try to be factual when discussing Gozo with entrepreneurs and potential investors. Gozo has made significant progress, albeit with other possible consequences; however, it remains an island with massive potential and margins for further calibrated progress. Gozo’s core is a hardworking, resilient and capable population. As mentioned, Gozo has its own challenges, opportunities and strengths. What remains consistently clear is that the Government has invested in the island, and the Gozitans are there to make the best of what they can. Additionally, the incentives that are afforded at a national level, are offered in Gozo, with the majority of them providing additional impetus towards investment in Gozo. This is further complemented with incentives offered exclusively at a regional level by InvestGozo through the Ministry for Gozo and Planning.