Gozo Regional Development Strategy To Generate €186M+ In Economic Value

A comprehensive Economic Impact Assessment of the Gozo Regional Development Strategy (GRDS) 2023–2033 has revealed that the initiative is expected to generate nearly €270 million in total expenditure, creating over 530 full-time jobs and delivering substantial economic benefits across the Maltese Islands.

Launched in 2023, the GRDS spans a ten-year period and outlines a vision for Gozo’s long-term development across three thematic and eight priority areas. The strategy combines both hard and soft interventions, including infrastructural projects, research and development, training programmes, and incentive schemes. It aims to improve Gozo’s economic performance, social well-being and environmental sustainability.

The Gozo Regional Development Authority (GRDA), as mandated by law, does not implement the strategy directly but oversees and coordinates its execution. Implementation responsibilities are delegated primarily to government departments and entities, especially those within the Ministry for Gozo and Planning. These bodies will use national and EU funds to carry out the measures.

Public investment over the strategy period is estimated at €230 million, averaging €23 million annually. Capital expenditure accounts for the majority, with more than half allocated to Priority Area 2, which focuses on enhancing Gozo’s accessibility. Priority Area 1, dealing with spatial planning and urban development, represents another major investment area.

To complement public funding, private sector contributions are also anticipated. Based on various co-financing models, including for electric vehicle schemes and tourism-related investments, private expenditure is projected to reach €36 million. For every €100 of government investment, an additional €16 in private spending is expected.

In total, the strategy’s implementation is set to inject approximately €270 million into the economy. Using national input-output multipliers and recent employment and value-added data, the assessment estimates that the GRDS will produce a total economic value added of €186.5 million over the ten-year period. Of this, €80.8 million would stem from direct activities, €51.4 million from indirect effects, and €54.3 million from induced impacts, such as increased consumer spending.

The employment impact is equally significant. The strategy is projected to create 534 full-time equivalent jobs annually across Malta, of which around 330 are expected to be based in Gozo. These jobs span a range of sectors and are linked not only to infrastructure and services but also to downstream economic activity.

Government tax revenue will also benefit. The assessment forecasts annual tax receipts of €5.1 million, totalling €51.4 million over the decade. These revenues derive from increased business activity and employment driven by the strategy’s implementation.

The Gozo Regional Development Strategy is a far-reaching initiative that promises strong returns in terms of value added, employment and government revenue. It demonstrates the potential of a coordinated, well-funded regional strategy to transform Gozo’s economy while ensuring sustainable development and improved quality of life for its residents.

#MaltaDaily