Gozitan stakeholders welcome Budget support, raise calls for ring-fenced funds and long-term planning

Two of Gozo’s main socio-economic stakeholders have issued their responses to the 2026 Budget, welcoming measures aimed at easing pressures on households and supporting businesses, while reiterating the need for stronger regional structures and investment focused directly on the island.

In its statement, the Gozo Business Chamber (GBC) described the Budget as “a socially oriented one, but which also continues to incentivise businesses to move forward.” It highlighted that tax measures for families would support “a better quality of life,” noting that “a strong economy must go hand in hand with the well-being of society.”

The Chamber praised the “measured approach” to the introduction of new private-sector obligations related to occupational pensions and family-related leave, stating that this fosters “a comprehensive discussion” without placing “excessive burdens on the private sector or increasing disparities with the public sector.”

Support for strategic growth sectors

Gozo’s potential for innovation and diversification featured prominently in the GBC’s reaction. It “welcomes the emphasis on start-ups, particularly in high value-added sectors,” while calling for a clear commitment to ensure the new start-up framework is “implemented in Gozo,” centred around the island’s Innovation Hub, which is “currently not being utilised to its full potential.”

The Chamber also described the reforms enabling young people aged 16 to 18 to become entrepreneurs as “an important step forward,” and welcomed the Government’s plan to make the opening of a bank account a legal right.

Measures under Micro Invest received positive attention as well. The Chamber noted that enhanced thresholds and employee retention incentives represent “another positive step for Gozitan businesses.”

Tourism support acknowledged, but calls for local reinvestment

Both organisations focused strongly on tourism, particularly the eco-contribution increase from €0.50 to €1.50 per night.

The Gozo Business Chamber stated that the measure “is an important measure to help strengthen infrastructure in the tourism sector,” yet emphasised that funds raised “should be ring-fenced, so they are spent on tourism-related projects on the island itself.”

The Gozo Tourism Association (GTA) echoed this view, noting that its ring-fencing proposal “was completely overlooked.” It welcomed the broader social and business-support measures, while reiterating that the only tax increase announced “affects the tourism sector.”

The GTA positively highlighted Government’s pledge to update the Tourism Act “to reflect the current tourism realities.”

Infrastructure and connectivity remain priorities

Major capital commitments were acknowledged, including the multi-level Victoria parking facility, rural airfield development, upgrades to ferry terminals, and improved sea links.

The GTA observed that ferry connectivity improvements “are beneficial also to the tourism sector,” although it noted that the Budget “does not address any of the Association’s proposals for a comprehensive plan for the inter-island sea link,” referencing issues such as vessel replacement and port expansion.

Similarly, the GBC welcomed increased transport investment, including a fully electrified bus fleet by 2026, while insisting that “no meaningful improvements can occur without strong infrastructural and strategic investment in the Port of Mġarr,” suggesting that land reclamation considered for Freeport should “also be considered for Gozo.”

The Gozo Business Chamber concluded by insisting that the island must continue moving toward “regional structures that can determine spending priorities and strategic projects independently,” while working to establish “value-added niches” that ensure national development is equally reflected in Gozo.

The Gozo Tourism Association, meanwhile, stated that it “welcomes several measures that support investment in the Gozitan tourism product, as well as measures to entice employee retention.”