GTA survey: Rising operating costs most pressing concern among Gozo tourism operators

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GTA survey: Rising operating costs most pressing concern among Gozo tourism operatorsAn online survey conducted by the the Gozo Tourism Association among its members has revealed that rising operating costs remain the most pressing concern, identified by nearly 79% of respondents.

The Gozo Tourism Association said that when gauging Gozo’s competitiveness, 76% of respondents expressed concern that “increasing operating costs could undermine the island’s position as a desirable destination. Comments cited construction works, rising costs, excessive booking engine commissions, infrastructural challenges, and a perceived loss of Gozo’s traditional peaceful character as key risk.”

Other significant challenges include increases in prices (48%), staff shortages (36%), skills pass (33%), foreign staff work permits (30%), and infrastructural works (30%). Several operators also highlighted issues such as administrative bureaucracy and financial costs.

The survey was carried out over the past two weeks and the GTA said it focused on the performance of Gozitan tourism establishments during the past year 2024 compared to the year 2023.

The survey results also indicate “encouraging developments,” the GTA said, with 42% of establishments reporting better business performance in 2024 compared to 2023, while 39% stated that their performance was similar, and 18% reported a decline.

It noted that the positive trend was especially evident in the performance of the foreign market. When asked about the effect of foreign tourism on their business during 2024, 67% of respondents classified the foreign market’s impact as either ‘Good’ or ‘Excellent.’ Furthermore, 55% confirmed that the foreign market performed better than in 2023, while 21% said it remained the same, and 24% reported a weaker performance.

The domestic market, meanwhile, presented more balanced results, the GTA said. Around 42% of respondents described the domestic market’s effect as either ‘Good’ or ‘Excellent,’ while 38% rated it as ‘Average’ and 19% as ‘Poor.’ When compared to the previous year, 29% of respondents said the domestic market had improved, another 42% felt it remained unchanged, while 29% reported a decline.

In terms of revenue generated during the year 2024, 58% of respondents classified their income as ‘Good’ or ‘Excellent.’ Comparing revenue figures with those of 2023, 52% stated that 2024 revenue was higher, 30% said it remained stable, and 18% indicated a decline. Among those who saw increased revenues, the majority (83%) attributed the growth mainly to an increase in clientele, rather than higher prices.

The GTA said that regarding the festive season (24th December 2024– 1st January 2025), 29% reported better revenue than the previous year, 39% stated it remained the same, while 32% indicated a drop.

“Despite these positive developments, challenges persist for Gozitan tourism operators,” stated the GTA.

When asked about the evolution of their business operations over the past year, 44% of respondents reported improvements, 41% stated operations remained unchanged, and 15% indicated deterioration.

The GTA said that the “strong participation” from Gozitan tourism operators covered a wide spectrum of the island’s tourism sector. Respondents included operators from the Accommodation sector, Restaurants, Diving Centres, Tourist Attractions, Transport, Tour Operators, DMCs, Travel Agencies, Rental Property Agencies, and Tourism Consultancy firms.

File photo: Gozo News/Alain Salvary

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