The Ghal Ghawdex Forum in response to Budget 2024, has acknowledged that the Government has taken a “first tentative step” in tackling the “vast problem of overdevelopment in Gozo,” but “it is not too late to do more.”

However, the Forum expressed its disappointment that the Government has “failed to take this opportunity to introduce important and strategic reforms as proposed by ‘Ghal Ghawdex’ in a definitive manner designed to make real positive change, and within the context of the new strategy published by the Gozo Regional Development Authority.”

In a statement on Wednesday, Ghal Ghawdex said that it is pleased to note that a new Environment and Development strategic plan is expected to be finalised for public consultation during 2024, but said that “there is no mention of a strategic plan specifically designed for Gozo that takes into account the different needs and characteristics of the sister island, a key recommendation from the Ghal Ghawdex Forum.”

The Forum said it “strongly supports” the continued exemption of capital gains tax and stamp duty for the first €750,000 of UCA properties on condition that such property is restored, as well as the VAT exemptions on the first €30,000 of restoration expenses.

The first-time buyers’ grant of €40,000 for vacant UCA properties is also welcomed, the Forum said. Nonetheless, the Forum noted that such grants should be accompanied with a formal commitment to protect the property in the long term.

The Forum acknowledged the decision for the removal of stamp duty subsidies for property purchases in Gozo. However, it noted that the recommendation from Ghal Ghawdex was for the removal of the stamp duty subsidy only for the sale and purchase of property destined for demolition and redevelopment into apartments.

The Forum went on to say that the Budget has “failed to implement the second part of the key Ghal Ghawdex fiscal recommendation to re-direct savings from the removal of stamp duty subsidies on apartments, into introduction of new subsidies towards the sale and purchase of vernacular properties in Gozo outside the UCA, on the same conditions as applicable to UCA.”

It pointed out that this would have encouraged sustainable development and economic activity with buyers tying themselves to restoration and preservation of such property, respecting its integrity and surrounding height of the traditional Gozitan village.

The Forum noted the focus that the Budget promises to give to the Visit Gozo brand, “while reminding the government that marketing alone will not be sufficient to counteract the negative holiday experience of many tourists to Gozo due to the overwhelming negative impact of property construction in the island.”

The Forum also noted that the Budget Speech “failed to implement another of the key recommendations to introduce new incentives for conversions (in line with the nature of the property) of vernacular homes into high-end boutique accommodation, subject to protection of the key features and structural integrity of the property being re-developed.”

There is also no mention of incentives for new economic sectors for Gozo to reduce the overreliance on sectors such as tourism, construction, and real estate, the Forum said.

“It is important that the Government steers the economy of the island into new economic sectors. More would have been expected given the publication of the new Regional Development Strategy for Gozo,” said Ghal Ghawdex.

The ‘Ghal Ghawdex’ Forum was formed in December 2022 and represents key stakeholders in Gozo including the 14 local councils under the ‘Regjun Ghawdex’ umbrella, the Gozo Business Chamber, the Gozo Tourism Association, NGO’s Din L-Art Helwa Ghawdex, Ghawdix, Wirt Ghawdex and Gozo University Group.

The stakeholders said that they “look forward to other positive decisions that need to be urgently taken following the Budget announcements to achieve the environmental and heritage goals and peace of mind that all well-meaning Gozitans and residents of the island aspire to.”

Photograph: Daniel Cilia

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