Tourism: from Covid to Climate Change

The tourism lobby, through the MHRA (Malta Hotels and Restaurants Association), is once more breathing down the authorities’ neck. Some of their former employees have not returned, after the pandemic.  They are obviously referring to those employees of theirs who were shed off their payroll, as soon as the pandemic impacts started being felt.

After treating some of their employees like shit they are now asking for tax exemptions as a carrot to attract them back to fill the void created. Tax exemptions?  Difficult to qualify if you are employed on a zero-hour contract, hardly paying any tax at all!

The fact that an increasing number of employees are migrating from the tourism industry, is indicative that the employment conditions and the remuneration paid by the industry, at least, to some of its employees, is not worth it. If it were, former employees would come back on their own without the need to be enticed with tax exemptions.

Specifically, sections of the tourism industry are based on cheap labour: paying miserly hourly rates on zero-hour contracts. In addition to having reasonable rates of pay, it is imperative that zero-hour contracts are scrapped. That is to say a contract of employment must be for an agreed number of hours per week and not left at the absolute discretion of the employer. Greens in Malta have repeatedly advocated this step. A Labour government is apparently not interested.

Isn’t it about time that the tourism industry gets its act together? Government has over the years dedicated many resources to help the industry get on its feet. Various subsidies and favourable administrative decisions including planning policies designed to ride roughshod over the residential community are in place. Yet they want more.

At almost 3 million tourists in 2019, Malta is definitely close to a saturation point in the uptake of tourists it can handle. This has placed too large a strain on the country’s infrastructure.

Covid has clearly identified an Achilles heel. We need to learn a number of lessons. Foremost to reduce our dependence on tourism in order to ensure that the next time movement between countries is an issue, impacts on all are cushioned considerably. The next issue is round the corner. It is climate change.

Last week various initiatives were announced by the EU Commission in order that the target of carbon neutrality by 2050 is achieved. The Commission has identified a number of measures which could facilitate the achievement of an intermediate target of 55 per cent greenhouse gas emissions reduction by 2030 and beyond.

One such initiative is the environmental taxing of aviation fuel. Such an initiative is intended to internalise the environmental costs of such flights. This could result in either of two options: the payment of a carbon tax by those who use such flights or the use of alternative modes of transport thus avoiding altogether the payment of the tax.

On mainland Europe, use of trains is in many cases a suitable alternative which has considerably reduced environmental impacts. However, in our case we do not have practical alternatives to aviation. This will inevitably increase the costs of flights and consequently bring about a reduction in the number of tourists opting to visit Malta. Most of our competitors will be similarly impacted, but that is no consolation for the industry! Cheap plane fares could soon be history.

As announced by Minister Miriam Dalli, Malta expects that it is a “special case”. Most probably it will be successful in negotiating a reasonable transition, and/or some exceptions. In the long run, however, opposing outright such a measure goes against Malta’s long-term interests. Malta, like all island states, together with coastal settlements and communities, will have to face some of the worst impacts of climate change, that is sea-level rise. The climate, would not care less about our special case, or our economy. It will impact us just as forcefully. The climate is merciless.

It would be pertinent to remember that most of our tourism infrastructure lies along or within reach of the coast. This signifies that a sea-level rise could easily play havoc with such infrastructure. If substantial, a sea-level rise will also seriously impact our coastal communities, which are spread over quite a large area along the coast.

It is about time that we stop and think carefully. Tourism is at the crossroads. It needs to be subject to an overhaul: taking into consideration the covid lessons, and applying them to the climate change scenario which sooner or later we will have to face. This is the future of tourism, not tax exemptions.

published in The Malta Independent on Sunday : 25 July 2021

Il-pandemija u l-kummerċ tal-Milied

Bħala riżultat tal-pandemija Covid-19, dan il-Milied ser ikun wieħed differenti minn dawk li ġew qablu.  Normalment il-Milied  huwa ż-żmien meta  nissoċjaliżżaw iktar mill-bqija tas-sena. Żmien li fih niltaqgħu iktar mal-ħbieb u mal-familjari. Huwa ż-żmien li fih hu normali li niltaqgħu fi gruppi għal attivitajiet differenti.  

Dan hu kompletament bil-maqlub tal-mod kif issa jeħtieġ li naġixxu biex nikkumbattu kontra l-coronavirus. Li nnaqqsu drastikament u possibilment nevitaw il-kuntatti tagħna hu l-minimu meħtieġ f’dawn iċ-ċirkustanzi biex tonqos l-imxija tal-coronavirus.  Bosta minna hekk jagħmlu, minkejja li l-Gvern kontinwament jagħtina sinjali konfliġġenti.   

Wieħed minn dawn is-sinjali konfliġġenti ngħata waqt il-konferenza stampa biex ikun imniedi  Christmas in the City iktar kmieni din il-ġimgħa. Il-Ministri  Josè Herrera u Julia Farrugia-Portelli, imwieżna miċ-Chairman tas-Super One Jason Micallef, u oħrajn, tkellmu dwar il-ħinijiet tax-xiri u dwar kemm ser ikun faċli l-parking għal min jitħajjar imur il-Belt biex jixtri r-rigali tal-Milied. L-ispirtu tal-Milied xejn ma jiddependi mis-siegħat ta’ xiri fil-ħwienet. L-anqas ma jiddependi minn kemm ikollna aċċess faċli għall-parking.  

Is-sinifikat propju tal-Milied hu tal-istaġun tas-solidarjetà li fiċ-ċirkustanzi preżenti, maħluqa mill-pandemija, hu importanti iktar minn qatt qabel.

Fl-istess ħin li l-Ministri Herrera u Farrugia-Portelli kienu kienu qed jitkellmu dwar Christmas in the City, epidemologisti kienu qed iwissuna li matul ix-xahar ta’ Diċembru r-rata tal-imwiet f’Malta mill-Covid-19 mistenni li tiżdied bi tlett darbiet: minn żewgt imwiet kuljum għal sitta kuljum. In-numru tal-imwiet mill-Covid-19 diġa żdied b’mod konsiderevoli sa minn meta tnaqqsu r-restrizzjonijiet f’Lulju li għadda. Fil-ħin li qed nikteb in-numru ta’ mwiet ħtija tal-Covid-19 laħaq il-108, u sa x’ħin dan l-artiklu jinqara n-numru sfortunatament ikompli jikber.

Fid-dawl ta’ dan ma jagħmilx sens li tistieden lin-nies biex jinżlu l-Belt għax-xiri tar-rigali tal-Milied. Huwa l-waqt li nagħmlu eżatt bil-maqlub:  innaqqsu l-moviment tan-nies bit-tama li dan jgħin fit-trażżin tal-pandemija.  Huwa dan li messu qed iħeġġeġ il-Gvern.

Ikoll nirrikonoxxu li l-pandemija kellha impatt qawwi u negattiv fuq l-għixien ta’ bosta.  Is-setturi tal-ikel u tal-ospitalità  kellhom sfida qawwija matul ix-xhur tas-sajf. Iż-żmien meta normalment imorru tajjeb, kien iż-żmien meta qalgħu l-ikbar daqqa.  Iktar ma noqorbu lejn il-Milied mhux talli l-pandemija ma naqqsitx, talli donna iktar irrankat. L-irkupru ekonomiku jidher li għad baqalu.

In-numru ta’ dawk li qed ikunu infettati qiegħed jikber.  Fl-istess ħin lkoll nifhmu li l-iskop wara x-xewqa li jkunu mħajra n-nies lejn il-Belt u ċ-ċentri kummerċjali hi motivata mill-ħtieġa tad-dinja tal-kummerċ biex ittaffi d-daqqa li qalgħet billi tipprova issarraf ftit mill-kummerċ li normalment jiġġenera l-Milied. Il-konsiderazzjonijiet ta’ saħħa, imma, għandhom dejjem jibqgħu l-prijorità: issa mhux iż-żmien li jkunu nkoraġġiti l-ebda tip ta’ celebrazzjonijiet.  Flok ma ninkoraġixxu lin-nies biex tersaq lejn ic-ċentri kummerċjali l-Gvern għandu jkun fuq quddiem biex iħeġġeġ l-attenzjoni u prudenza. Mhux Ministru wieħed, imma l-Gvern kollu! Il-vouchers, l-għotjiet, l-għajnuniet u s-supplimenti għall-pagi li l-Gvern qed iqassam f’isimna lkoll, wara kollox, għandhom l-iskop li jtaffu dan il-piz li nħoloq bħala riżultat tal-pandemija.

Għalfejn f’dan il-mument kritiku narmu l-kisbiet li ġibna bis-sagrifiċċji ta’ bosta? Għax huwa dan li nkunu qed nagħmlu kull meta jingħata ħjiel li wara kollox tajjeb li ninġabru u niċċelebraw. Issa mhux il-waqt għal dan.

Il-Covid-19 mhux ser joqtol il-Milied jekk inqas nies jixtru ir-rigali! L-ispirtu tal-Milied ma jitkejjilx  mill-volum ta’ rigali li jinxtraw imma minn kemm aħna kapaċi nkun solidali mal-vulnerabbli tal-lum.

U issa?

L-ikbar att ta’ solidarjetà, bħalissa, hu li harsu lill-vulnerabbli fostna billi nimxu mad-direttivi tal-awtoritajiet tas-saħħa intenzjonati biex iżommu lill-pandemija milli tkompli tixtered.  Il-vaċċin jidher li hu fil-qrib. Dan inissel tama li possibilment matul l-ewwel nofs tas-sena l-ġdida nibdew l-ewwel passi fil-mixja bil-mod lejn in-normalità.  

Imma sadakinnhar hu obbligu tagħna li nħarsu kemm lilna nfusna kif ukoll lil ħaddieħor b’imġieba prudenti. Din hi s-solidarjetà prattika li dan l-istaġun tal-Milied jistenna minn għandna.

Ippubblikat fuq Illum: il-Ħadd 22 ta’ Novembru 2020

Covid-19 and the City

As a result of the Covid-19 pandemic, this Christmas is essentially different from all past ones.

Christmas is normally time for meeting with friends and family, for socialising. It is the time when we normally gather in large groups for a variety of purposes. This is exactly the opposite of what is required to combat the spread of the coronavirus. Avoiding and reducing unnecessary contacts to the bare minimum helps to prevent the further spread of Covid-19. That is what we all say and believe, notwithstanding government’s continuous conflicting signals. 

One of the last such conflicting signals was given during a Press Conference launching Christmas in the City earlier this week. Ministers Josè Herrera and Julia Farrugia-Portelli, buttressed by Super One Chairman Jason Micallef and others spoke about shopping hours and parking requirements when launching Christmas in the City.  The Christmas spirit is not dependent on shopping hours, nor does it have any parking requirements.

In my book Christmas is the solidarity season which in the context of the current Covid-19 pandemic assumes additional significance.

Almost simultaneously with the Christmas in the City launching, epidemiologists were warning us that the daily number of deaths from Covid-19 in Malta was expected to triple during the month of December: from two to six deaths daily. At the time of writing the Covid-19 death count is 106 and rising. The death count has increased substantially since restrictions were reduced in July 2020.

Within this context it is not on to encourage large numbers to descend on Valletta for their Christmas shopping. It is the time to do exactly the opposite: discourage movements, hoping that as a result, movements are restricted to the bear minimum.

All of us acknowledge that Covid-19 has seriously impacted the livelihood of many. Economic sectors such as the food and the hospitality industries have experienced severe challenges during the summer season, when ordinarily this business would have been booming. As we approach Christmas, the pandemic not only does not show any sign of slowing down: it may well spike once more. An opportunity for economic recovery remains under threat.

More people are succumbing to the virus every day. The desire to draw people to Valletta and other commercial centres in an effort to tap the Christmas spirit for commercial gain, thereby providing a lifeline to businesses is understandable. Health considerations should however take priority: now is however not the time to encourage celebrations of whatever nature. Instead of encouraging people to get out to the commercial centres, government should encourage more cautious behaviour. Government handouts and wage supplements have the specific purpose of helping shoulder the burden created by all this.

Why do we threaten the sacrifices of the many at this critical time by encouraging unreasonable behaviour?

Covid-19 will not kill Christmas if fewer people do their Christmas shopping. The Christmas spirit is not measured in terms of the volume of Christmas shopping but in terms of our acts of solidarity.

Where do we go from here?

The greatest act of solidarity, at this time, is to protect the vulnerable amongst us by following the advice of the health authorities intended to contain the Covid-19 spread as much as possible. A vaccine may be on the horizon, possibly heralding the beginning of a slow return to normality in the first half of the new year.

Until then, it is our duty to take care of ourselves and others by ensuring cautious behaviour. This is the practical solidarity expected from all of us this Christmas season.

published in The Malta Independent on Sunday : 21 November 2020

It-turiżmu wara l-pandemija

It-turiżmu kien wieħed mis-setturi li l-iktar intlaqat bħala riżultat tal-pandemija Covid-19. Tul is-snin in-numri tat-turisti li ġew iżuruna żdied kull meta tjiebet il-konnettività: min-naħa l-oħra hekk kif il-konnettività naqset u eventwalment waqfet kompletament, ġara bil-maqlub.

Iktar kmieni din il-ġimgħa bdew jaslu l-ewwel turisti fil-port u l-ajruport tagħna. Bil-mod qed terġa’ tiġi stabilita l-konnettività li twassal biex it-turiżmu jibda jirpilja bil-mod. Il-Ministru tat-Turiżmu Julia Farrugia-Portelli f’dawn il-ġranet ħabbret il-mira tal-Gvern: 700,000 turist sal-aħħar tas-sena. Iktar kmieni t-tmexxija tal-Ajruport Internazzjonali ta’ Malta kienet emfasizzat li jeħtieġ madwar sentejn biex il-wasla tal-passiġġiera tirkupra u naslu fejn konna qabel ma faqqgħet il-pandemija.

Jista’ t-turiżmu qatt jilħaq il-livelli ta’ qabel il-pandemija?

Jeżistu stimi diversi dwar il-kontribut tat-turiżmu lejn l-ekonomija. Stima minnhom tipponta lejn kontribut dirett ta’ 5 fil-mija tal-ekonomija. Imma, bħala riżultat tal-impatt fuq setturi oħra dan is-sehem jitla għal madwar 12 fil-mija. Barijiet, restoranti, ħwienet li jbiegħu bl-imnut, attivitajiet pubbliċi, l-industrija tad-divertiment u t-trasport (in partikolari l-kiri tal-karozzi) huma dipendenti fuq it-turiżmu. Setturi partikolari bħat-tagħlim tal-Ingliż u ċ-ċentri tal-għaddasa huma meqjusa bħala parti integrali mill-ekonomija turistika.

Intqal ħafna dwar l-impatt tal-pandemija fuq il-lukandi. Imma anke dawk li jipprovdu sodod turistiċi barra mil-lukandi ġarrew fuq spallejhom impatt sostanzjali avolja ftit li xejn issemmew fid-dibattitu konness mal-impatti tal-pandemija. Dan huwa settur li jinvolvi negozjanti żgħar u dawk li nirreferu għalihom bħala micro-businesses li kull wieħed minnhom jimpjega inqas minn għaxar persuni.

UNCTAD, l-Aġenzija tal-Ġnus Magħquda dwar il-Kummerċ u l-Iżvilupp, iktar kmieni din il-ġimgħa ħabbret li l-iġġammjar tat-turiżmu minħabba l-pandemija ser jiswa’ lill-industrija globali tat-turiżmu madwar $1.2 triljun . Din l-istima tista’ tirdoppja skond kif tiżviluppa t-tieni mewġa tal-pandemija.

Il-Ġamajka tista’ titlef madwar 11 fil-mija tal-Prodott Gross Domestiku, t-Tajlandja 9 fil-mija, l-Italja 5 fil-mija. Fl-Unjoni Ewropeja l-agħar impatti huma mal-kosta Mediterranja fejn l-ekonomija hi dipendenti ħafna fuq it-turiżmu. Minbarra Malta hemm l-Italja, l-Kroazja, is-Slovenja, Cipru u l-Greċja li kollha ntlaqtu sew. It-Turkija u t-Tunesija, parteċipanti Mediterranji fl-industrija turistika ukoll iġġammjaw, wara li gawdew minn żidiet sostanzjali fin-numri ta’ turisti tul is-snin.

Jagħmel sens li l-Gvern, f’dan il-waqt, permezz tal-Awtorità Maltija tat-Turiżmu, qiegħed jiffoka fuq li jġib lill-industrija tat-turiżmu lura fuq saqajha. Dan imma, mhux biżżejjed. Jeħtieġ li nibdew naħsbu dwar il-futur tal-industrija u dan billi neżaminaw fid-dettall dak li l-industrja teħtieġ li tiffaċċja fit-tul.

Fi tmiem is-sena li għaddiet, l-2019, ilħaqna in-numru ta’ 2.8 miljun turista iżuruna. Il-punt hu jekk dawn in-numri humiex sostenibbli. Dan hu argument ta’ dejjem li ilu għaddej sa minnmeta n-numri kienu ferm iżgħar. Id-dibattitu kien, u għandu jibqa’ jkun dwar jekk għandniex niffukaw iktar fuq il-kwalità milli fuq il-kwantità.

Il-miġja fostna tal-linji tal-ajru low-cost bħala parti essenzjali mill-politika tat-turiżmu illum tpoġġi emfasi ikbar fuq in-numri. Din hi għażla politika li saret u li teħtieġ li tkun eżaminata u analizzata fil-fond. L-impatti ekonomiċi għandhom jitqiesu fl-istess ħin mal-impatti ambjentali. Irridu niftakru kontinwament li t-turiżmu jiġġenera bosta impatti ambjentali.

Wasal iż-żmien li nirrealizzaw li d-dibattitu meħtieġ dwar il-futur tat-turiżmu jeħtieġ li jsir fl-isfond tal-Patt l-Aħdar: The Green Deal.

L-emissjonijiet tal-ajruplani ser ikollhom ikunu indirizzati fil-futur qarib. Hu inevitabbli li jiddaħħlu taxxi dwar dawn l-emissjonijiet (carbon taxes) fi żmien mhux il-bogħod. Jekk mhux ser jittieħdu passi immedjati dwar dawn l-emissjonijiet ser ikun ħafna iktar diffiċli, biex ma ngħidx impossibli, biex ikunu ndirizzati l-konklużjonijiet tas-Summit Klimatiku ta’ Pariġi tal-2015. Summit li Malta ħarġet tiftaħar li kienet wieħed mill-ewwel pajjiżi li rratifikatu. F’dak il-mument (jekk nibqgħu ma nieħdux passi) mhux biss it-turiżmu jaqla’ daqqa kbira oħra imma tkun il-kwalità tal-ħajja tagħna lkoll li tieħu daqqa l-isfel.

Il-gżejjer Maltin, bħall-parti l-kbira tal-gżejjer imxerrda mal-ibħra, ikunu minn tal-ewwel biex jaqilgħu ġo fihom l-impatti tat-tibdil fil-klima. Il-kosta tkun effettwat bl-għoli tal-livell tal-baħar. Tajjeb li niftakru li l-infrastruttura tat-turiżmu qegħda kważi kollha mal-kosta! Iktar ma ninjoraw dan il-fatt bażiku ikbar tkun id-daqqa li naqilgħu.

S’issa naħseb li kulħadd irrealizza kemm l-industrija tat-turiżmu hi waħda fraġli. Kull xokk li l-industrija issofri jista’ jwassal għal tnaqqis kbir fl-impiegi f’din l-industrija. It-turiżmu għadu staġjonali wisq u dan minnu innifsu jwassal għal kundizzjonijiet tax-xogħol ta’ natura prekarja.

Jeħtieġ li nippjanaw iżjed billi nħarsu il-bogħod u fuq medda twila ta’ żmien: naħsbu u nippjanaw sewwa dwar l-impatti soċjali, ambjentali u ekonomiċi ta’ kull deċiżjoni. Dan wara kollox hu l-proċess li jwassal għal żvilupp sostenibbli. Hu l-unika mod kif nistgħu nassiguraw li l-impatti negattivi tal-industrija tat-turiżmu nistgħu nindirizzawhom illum qabel għada.

Ippubblikat fuq Illum : il-Ħadd 5 ta’ Lulju 2020

Post-Covid Tourism

Tourism is understandably one of the hardest hit sectors as a result of the Covid-19 pandemic. Over the years, tourism numbers increased substantially as a result of an increased connectivity: the reverse happened the moment that connectivity was restricted or became practically inexistent.

Earlier this week saw the first arrivals at our air and seaports. Slowly, connectivity is being restored. It is expected that tourism will now start a slow recovery. Tourism Minister Julia Farrugia-Portelli is on record with a 700,000-tourist target for year end. Malta International Airport CEO had earlier opined that it will take at least two years to recover to pre-pandemic level airport movements.

Will tourism ever recover to the pre-pandemic levels?

There are various estimates of the contribution of tourism to the economy. One such estimate points at a direct contribution of around 5 percent of our economy. However, as a result of its impacts on other sectors the overall contribution rises to around 12 percent. Bars, restaurants, retail trade, events, entertainment and transport (in particular car hire), are heavily dependent on tourism. Specific sectors such as the English language school sector as well as diving are important sectors in the tourism economy.

Much has been stated on the impact of the pandemic on the hotel industry. The providers of non-hotel beds, however, have also been heavily impacted by the pandemic, but they have not featured much in the post-Covid-19 debate. This is a sector which involves a number of small-scale investors and micro-businesses each employing less than ten employees.

UNCTAD, the UN Trade and Development Agency, earlier this week stated that the four-month standstill of the tourism industry due to the pandemic Covid-19 could cost the industry around $1.2 trillion. This estimated cost could more than double, depending on the severity and spread of a second wave of the pandemic.

Jamaica could lose as much as 11 percent of its GDP, Thailand 9 percent, Italy 5 percent. In the EU, the worst impacts are along the Mediterranean coast where the economy is heavily dependent on tourism. In addition to Malta, Italy, Croatia, Slovenia, Cyprus and Greece are also heavily impacted. Turkey and Tunisia, Mediterranean players in the tourism industry have also been almost at a standstill, after experiencing a substantial expansion of their tourism industry throughout the years.

It is understandable that government through the Malta Tourism Authority is currently focused on getting tourism back on its feet. This is however not enough. We must start discussing a long-term view of the tourism industry.

At the end of 2019 the 2.8 million mark of tourists visiting the Maltese islands had been attained. The point at issue is whether this is sustainable in the long-term. This has been a perennial issue in tourism politics since the days when the numbers were much lower. The debate was and should be whether we should focus more on quality than on quantity.

The advent of low-cost carriers as an essential part of the tourism equation places more emphasis on numbers than on quality. It is a choice which may need to be analysed and revisited. Economic impacts have to be viewed concurrently with environmental impacts. We must remember that tourism has a considerable environmental impact. It is about time that the tourism debate is carried out within the parameters of the Green Deal.

Aeroplane emissions will at some point in time in the near future have to be addressed. Carbon taxes will sooner or later come into play. Unless they are addressed immediately it will be more difficult, if not practically impossible, to address the Paris Climate Change conclusions to which Malta has adhered. At that point it will not be just the tourism industry but our whole lifestyle which will be in for the chop.

The Maltese archipelago, like all islands, will bear the brunt of climate change impacts. The coastline will be severely hit by a sea level rise. It may be pertinent to remember that the coast houses practically all of the tourism infrastructure. The longer we ignore this basic fact, the more severe will the impacts be.

By now all of us are aware that Tourism is a very volatile industry: any shock will result in mass redundancies. Tourism is currently way too seasonal, and consequently it only serves to create precarious working conditions.

It is the time to plan ahead: thinking carefully of the social, environmental and economic impacts of all decisions. This is what sustainable development is, after all, about. It is the only way to ensure that the negative impacts of the tourism industry are addressed by us sooner rather than later.

 

published in The Malta Independent on Sunday : 5 July 2020

Edward Scicluna u l-bajtar tax-xewk

Iktar kmieni din il-ġimgħa, l-President tal-Kummissjoni tal-Unjoni Ewropea, Ursula von der Leyen, ippreżentat lill-Parlament Ewropew pjan ta’ €750 biljun biex inqumu fuq saqajna. Pjan li jista’ jiġġenera investiment stmat €3.1 triljun fl-ekonomija Ewropea. Permezz ta’ għotjiet flimkien ma’ self, il-Kummissjoni Ewropea qed tfittex li tegħleb l-impatti ekonomiċi negattivi tal-Covid-19 kif ukoll li tagħti bidu għall-azzjoni meħtieġa biex ikun implimentat il-Ftehim l-Aħdar (the Green Deal).

It-triq biex nirkupraw mhiex faċli. Mhux il-każ li mmorru lura għal kif konna. Dak spiċċa. Irridu nimxu l-quddiem lejn normal ġdid. Li nintegraw flimkien il-ħidma biex nirkupraw mill-impatti tal-pandemija flimkien mal-azzjoni meħtieġa dwar it-tibdil fil-klima mhux ser tkun faċli imma hi essenzjali u mhux possibli li tkun posposta. Kif ġie emfasizzat fuq Euroactive nhar l-Erbgħa, it-triq biex nirkupraw tiddependi minn ħafna kundizzjonijiet konnessi mal-ambjent. 25 fil-mija tal-finanzjament propost mill-Kummissjoni Ewropeja hu fil-fatt marbut ma’ ħidma klimatika.

Edward Scicluna, il-Ministru tal-Finanzi, fl-ewwel reazzjoni tiegħu għall-pjan tal-Kummissjoni ikkummenta mħasseb dwar miżuri prattiċi konnessi mal-klima. Bħala gżira ser inweġġgħu ħafna qal, jekk jindirizzaw l-emissjonijiet tal-ajruplani u l-vapuri. Il-pjan, qal Edward Scicluna, jixbah lill-bajtar tax-xewk. Scicluna jippreferi li ma jsir xejn ħlief paroli. L-anqas m’hu jieħu pjaċir b’dak li qed jingħad dwar it-tassazzjoni tal-kumpaniji, avolja konxju li m’għadx baqa’ żmien biex fl-Unjoni Ewropea tħajjar kumpaniji jibqgħu jħarbu l-obbligi tagħhom tal-ħlas tat-taxxi.

Hu korrett li jingħad li ser nintlaqtu bil-miżuri dwar il-klima. Hekk għandu jkun, għax il-ħidma tagħna għandha impatt fuq il-klima. Nistgħu imma ninnegozjaw biex dawn l-impatti fuqna jonqsu mingħajr ma nnaqqsu l-impenn (reali) tagħna biex ikunu indirizzati l-impatti klimatiċi tal-industrija tal-avjazzjoni u tal-vapuri. Bla ebda dubju dan ser ikun ifisser impatti sostanzjali kemm fuq it-turiżmu kif ukoll fuq il-kummerċ.

Dan ma jistax ikun evitat għax dawn l-industriji għandhom l-obbligu li huma ukoll jġorru fuq spallejhom l-impatti li qed jikkawżaw. Dak hu li wegħdna bħala pajjiż fis-Summit ta’ Pariġi dwar il-klima. Wasal il-waqt li nwettqu dak li ġie imwiegħed. Biex niġu fuq saqajna irridu nfasslu l-futur mill-ġdid. Il-ħsara li teħtieg li tissewwa mhiex biss dik ekonomika u ambjentali. Jinħtieġ li tul l-Unjoni Ewropea kollha nibnu s-solidarjetà fuq pedamenti sodi. Dak li Edward Scicluna jqis bħala l-bajtar tax-xewk huma fil-fatt l-għodda bażiċi tas-solidarjetà.

Għax is-solidarjetà hi meħtieġa mhux biss meta aħna bir-raġun kollu nokorbu ma’ kull mewġa ta’ immigranti fl-ibħra Maltin. Is-solidarjetà hi dak li Malta tinjora meta tfittex li tkun attraenti għal min irid jevadi t-taxxi f’pajjiżu: dawk li jħallsu ftit lill-kaxxa ta’ Malta biex jevitaw milli jħallsu l-biljuni band’oħra. Il-politika dwar l-armonizzazzjoni tat-tassazzjoni fl-Unjoni Ewropea hi r-risposta bis-sens għall-politika li tinkoraġixxi l-evażjoni tat-taxxa f’Malta, l-Olanda, il-Lussimburgu u l-Irlanda.

L-Oxfam f’rapport ippubblikat fl-2019 u ntitolat “Off the Hook. How the EU is about to whitewash the world’s worst tax havens” temfasizza li “l-Irlanda, il-Lussimburgu, Malta u l-Olanda huma fost il-pajjiżi li l-iktar jinkoraġixxu l-evażjoni tat-taxxa fid-dinja, b’mod li jagħmluha possibli li kumpaniji kbar jirnexxielhom iħallsu ammont żgħir ta’ taxxa. Per eżempju, ir-regoli internazzjonali tat-taxxa jippermettu lill-Vodafone Group Plc biex jallokkaw kważi 40 fil-mija tal-profitti taxxabbli tagħhom f’Malta u l-Lussimburgu.”

Rajna ukoll rapporti dwar il-BASF, ġgant fl-industrija kimika fil-Ġermanja, li jispjegaw kif din tevadi t-taxxa. Fir-rapport tal-Ħodor Ewropej ippubblikat fl-2016, intitolat “Toxic Tax Deals. When BASF’s Tax Structure is more about style than substance” kien spjegat kif il-BASF irnexxiela tevadi madwar biljun euro f’taxxa, u minflok ħallset ammonti żgħar bil-kompliċità ta’ Gvernijiet Maltin: ħomor u blu.

Jeħtieġ li l-ewwel u qabel kollox nirkupraw l-imġieba etika tagħna, anke qabel ma nirkupraw ekonomikament u ambjentalment. Ir-riġenerazzjoni tal-valuri tagħna għandha tkun prijorità qabel ma nippruvaw insewwu l-kaxxa ta’ Malta li minnha, bħalissa ħerġin il-flus maħmuġin akkumulati mill-bejgħ tal-passaporti. Flejjes miġburin minn persuni bħall-biljunarju Russu Boris Mints, l-Eġizzjan Mustafa Abdel Wadood, il-biljunarju Ċiniż Liu Zhongtian, in-negozjant Russu Pavel Melenikov u l-Iżraeli Anatoly Hurgin, li irnexxielhom jiżgiċċaw minn eżami suppost rigoruż u ngħataw iċ-ċittadinanza Maltija: però xorta spiċċaw għaddejjin proċeduri kriminali f’diversi pajjiżi oħra primarjament dwar frodi u ħasil tal-flus!

F’dan iż-żmien ta’ ħtieġa l-Ministru tal-Finanzi Edward Scicluna spiċċa dipendenti fuq flejjes li oriġinaw minn dawn is-sorsi maħmuġin. Ma tkunx esaġerazzjoni li ngħid li spiċċa dipendenti minn flus li oriġinaw mill-kriminalità.

Fir-reazzjonijiet tagħha għall-proposti tal-Kummissjoni tal-Unjoni Ewropea Evelyne Huytebroech, waħda miż-żewġ mexxejja tal-Partit tal-Ħodor Ewropej, emfasizzat li din il-proposta flimkien ma dik tal-Parlament Ewropew u l-proposta Franco-Tedeska ilkoll qed jaraw proċess ta’ self komuni. Dan hu pass il-quddiem għas-solidarjetà Ewropea. Għax is-solidarjetà tinbena bil-mod u bit-tbatija. Imma għal Edward Scicluna dan kollu bajtar tax-xewk!

ippubblikat fuq Illum :il-Ħadd 31 ta’ Mejju 2020

The recovery plan and Edward Scicluna’s prickly pears

Earlier this week, EU Commission President Ursula von der Leyen, presented for the consideration of the European Parliament a recovery plan worth €750 billion but which can unleash an investment estimated at €3.1 trillion in the EU economy. Through a combination of loans and grants the EU Commission seeks to integrate the reversal of the economic downturn resulting from the Covid-19 pandemic together with the action required to implement the Green Deal.

The road to recovery will be tough. It is not the case of going back to normal but of going forward to a new normal. Integrating the recovery from the pandemic impacts with climate change action will not be easy but it is essential and cannot be postponed. As emphasised by Euroactive on Wednesday, the road to recovery has plenty of green strings attached. 25 per cent of the funding proposed by the EU Commission is in fact earmarked for climate action.

Finance Minister Edward Scicluna, in his first reaction to the recovery plan, voiced concern on practical climate action measures. It hurts, he says, to address air traffic emissions or shipping pollution. As an island this would impact us substantially. The proposed recovery plan is comparable to prickly pears, he stated. He prefers the status quo: all talk and little walk. Edward Scicluna is not amused by rumblings heard on corporate taxation even though he is well aware that the days of attracting corporations seeking tax havens within the EU may well be numbered.

It is correct to state that we will be impacted substantially. We can however negotiate to reduce such impacts without diminishing our commitment to addressing climate change impacts of the airline and shipping industry. This would mean significant impacts on tourism and trade. These however cannot be avoided as climate change impacts have to be internalised: that is they have to be shouldered by the industries generating them. This is what we promised in the Paris Climate Summit. Promises that we must now honour.

Operation recovery must re-design the future. It must not be just an economic recovery or an environmental rebirth. It must also be a recovery of practical solidarity all over the Union. What Edward Scicluna views as prickly pears are in fact instruments of solidarity.

Solidarity is not just what we rightly cry for when immigrants crash through our borders. Solidarity is what we ignore when Malta insists on being attractive to tax evaders: those who pay peanuts to the Maltese exchequer in order to avoid paying billions elsewhere. The issue of tax harmonisation on an EU level is the sensible response to the tax haven fiscal policies of Malta, the Netherlands, Luxembourg, and Ireland.

Oxfam in its 2019 report entitled “Off the Hook. How the EU is about to whitewash the world’s worst tax havens” emphasises that “Ireland, Luxembourg, Malta and the Netherlands are among the most significant tax havens in the world, enabling some of the biggest corporations to pay minimal amounts of tax. For example, currently, international tax rules allow Vodafone Group Plc to allocate nearly 40% of its taxable profits to Malta and Luxembourg.” We have also seen reports on BASF clearly explaining how the German chemical giant avoids paying taxes due. The European Greens report “Toxic Tax Deals. When BASF’s Tax Structure is more about style than substance” published in 2016 had outlined how BASF had successfully avoided close to a billion euros in tax, paying just a small amount thanks to Maltese governments blue and red.

The recovery must be primarily ethical before being economic and environmental. Regenerating our values should be a priority higher on the list than the regeneration of our coffers, currently dishing out dirty money originating from the sale of citizenship schemes. Monies collected from the likes of Russian billionaire Boris Mints, Egyptian national Mustafa Abdel Wadood, Chinese billionaire Liu Zhongtian, Russian businessman Pavel Melenikov and Israeli Anatoly Hurgin, who slipped through what is described as a rigorous due diligence process and gain Maltese citizenship only to be prosecuted in different jurisdictions for various crimes primarily fraud and money laundering.

It is indeed telling that in time of need Finance Minister Edward Scicluna is dependent on monies originating from such dubious sources! It would not be an exaggeration to state that he is dependent on the proceeds of crime.

In her reaction to the EU Commission proposals Evelyne Huytebroech co-Chair of the European Greens emphasised that the EU Commission’s proposal together with the proposals of the EU Parliament and the Franco-German initiative all foresee a mutualised debt instrument: a major breakthrough for European solidarity. Solidarity is constructed slowly and painfully, while Edward Scicluna juggles with his prickly pears.

published in The Malta Independent on Sunday : 31 May 2020

It-turiżmu għarkuptejh

It-turiżmu hu ewlieni fost l-oqsma tas-setturi ekonomiċi milquta mill-pandemija Covid-19. Dan japplika iktar għat-turiżmu tal-massa li għadu s’issa settur importanti li fuqu hi dipendenti l-industrija turistika Maltija. Julia Farrugia-Portelli, Ministru għat-Turiżmu, (flimkien mal- Ministri għat-Turiżmu tal-Italja, Ċipru, Spanja, Franza, l-Portugall, il-Greċja, ir-Rumanija u l-Bulgarija) f’laqgħa virtwali iktar kmieni din il-ġimgħa fittxet kunsens biex jinħolqu kurituri siguri għat-turiżmu fit-triq lura lejn in-normalità u f’żona ħielsa mill-Covid-19.

Sfortunatament, tal-inqas fl-immedjat, irridu ngħixu mal-virus Covid-19 u l-limitazzjonijiet li ħoloq fuq il-ħajja normali tagħna. It-triq lura lejn in-normalità hi waħda twila. Ir-restrizzjonijiet straordinarji fuq ħajjitna li huma fis-seħħ presentment ma jistgħux jibqgħu għaddejjin b’mod indefinit u dan minkejja li illum huma meħtieġa.

Ir-restrizzjonijiet kważi totali imposti fil-gżejjer Maltin tul il-ġimgħat li għaddew kienu effettivi biex ikunu indirizzati il-biżgħat dwar is-saħħa. Bħala riżultat ta’ dawn ir-restrizzjonijiet, f’Malta, l-mixja tal-virus kienet imrażżna, kif jixhdu l-aħbarijiet ta’ kuljum imxandra mis-Supretendent dwar is-Saħħa Pubblika.

It-turiżmu qiegħed għarkuptejh. Prattikament waqaf, kullimkien madwar id-dinja, anke jekk temporanjament.

Fl-Unjoni Ewropea mit-turiżmu jiddependu qrib is-27 miljun impieg li jiġġeneraw madwar għaxra fil-mija tal-prodott gross nazzjonali. F’Malta u fil-pajjiżi ġirien fin-nofsinnhar tal-Ewropa, aħna dipendenti iktar mit-turiżmu mill-medja Ewopeja. Ix-xibka tad-dipendenza tal-ekonomija tagħna fuq it-turiżmu hi ferm ikbar minn hekk. It-tbatija kkawżat illum hi għaldaqstant ikbar u r-ritorn għal xi forma ta’ normalità inevitabilment tieħu iktar fit-tul.

Meta ser nirritornaw lura għan-normal? Ċertament li mhux fl-immedjat. Hu ferm dubjuż jekk din ix-xewqa għar-ritorn lejn in-normal magħruf tistax tintlaħaq, anke jekk inħarsu ftit fit-tul. Li hu żgur hu li ma hu ser jinbidel xejn mil-lum għal għada.

Iktar kmieni din il-ġimgħa l-Ministri tat-Turiżmu tal-Unjoni Ewropea iddiskutew inizjattivi biex jinkuraġixxu t-turiżmu intern fl-unjoni nnifisha u dan permezz tal-ħolqien ta’ speċi ta’ passaporti tas-saħħa bejn żoni ħielsa mill-Covid-19. Sakemm tibqa’ fis-seħħ il-miżura dwar iż-żamma ta’ distanza soċjali, l-proposta mhiex waħda realistika, ta’ l-inqas għall-futur immedjat u probabbilment għal bosta xhur wara.

Sfortunatament l-ivvjaġġar b’mod ġenerali, u b’mod partikolari t-turiżmu, għandu l-potenzjal li jservi għat-tixrid tal-pandemija bl-istess mod kif fil-passat kien il-kummerċ li serva biex xtered mard ieħor f’kull rokna tad-dinja. Fid-dawl ta’ dan, hu probabbli li t-turiżmu tkun fost l-aħħar mill-attivitajiet ekonomiċi li jibdew t-triq lura għan-normal, u dan wara li l-Covid-19 tkun taħt kontroll effettiv fl-Ewropa b’mod ġenerali.

Kulħadd jifhem u japprezza l-ħeġġa tal-Ministeru tat-Turiżmu biex jonqsu r-restrizzjonijiet fuq l-ivvjaġġar u allura fuq dawk is-setturi li minnhom hi dipendenti l-industrija tat-turiżmu. Sfortunatament, iżda, fil-futur immedjat dan mhux realistiku li jintlaħaq. Hemm dubji kbar anke dwar x’jista’ jseħħ fuq tul ta’ żmien.

L-ekonomija tal-parti l-kbira tan-nofsinnhar tal-Ewropa, u in partikolari dik tal-pajjiżi Mediterranji, hi dipendenti fuq it-turiżmu u dan billi tipprovdi vaganzi bi prezzijiet raġjonevoli tul is-sena kollha għal dawk ġejjin mit-tramuntana u ċ-ċentru tal-Ewropa f’kuntest ta’ suq Ewropew wieħed. Il-miġja tal-vjaġġi b’irħis mifruxa mal-Ewropa kollha komplew kabbru l-firxa ta’ din ix-xibka ta’ dipendenza.

F’dan il-kuntest huwa ċar li ftit jista’ jsir ippjanar bil-quddiem. Hemm ħaġa waħda li hi ċara: il-futur huwa nċert u t-turiżmu għad ma nafux x’sura ser jieħu fix-xhur u fis-snin li ġejjin. It-tbatija mhux ser tintemm hekk kif nieqfu nistennew. Għax it-turiżmu qiegħed għarkuptejh.

Ippubblikat fuq Illum: il-Ħadd 3 ta’ Mejju 2020

Tourism is on its knees

Tourism has been among the hardest hit sectors of the economy as a result of the Covid-19 crisis. This applies more so to mass tourism which still constitutes an important sector on which Malta’s tourism industry is dependent. Julia Farrugia-Portelli, Minister for Tourism, (together with Tourism Ministers from Italy, Cyprus, Spain, France, Portugal, Greece, Romania and Bulgaria) in an online meeting earlier this week advocated the creation of safe corridors, desperately seeking to create a return to normal in a Covid-19 free zone.

Unfortunately, at least in the short term, we have to live with a virus that has overturned ordinary life. The path back to normalcy will take a very long time even though it is clear that the extraordinary restrictions currently enforced cannot go on indefinitely, notwithstanding that today they are clearly a necessity.

The partial lockdown in operation in the Maltese islands for the past weeks has been effective in addressing public health concerns. As a result, in Malta, the spread of the virus has been contained and adequately managed as is evidenced by the daily briefings of the Superintendent of Public Health.

Tourism is however on its knees. It has been practically wiped out, temporarily, everywhere across the globe.

Within the European Union tourism accounts for close to 27 million jobs and around 10 per cent of GDP. In Malta, as well as in other neighbouring Southern European countries, tourism makes a larger contribution to the GDP. The web of dependence of the economy on tourism is larger. The pain is consequently larger and the expected time for recovery will be much longer.

Will we return to normal? Certainly not in the short term. It is even doubtful whether such a return to the “known normal” is achievable in the long term. Definitely any recovery will not occur overnight.

Earlier this week EU Tourism Ministers discussed whether initiatives should be taken to encourage internal tourism within the EU itself through some sort of health passports between areas within the EU which are Covid-19 free. As long as keeping a social distance rule remains in force this is not a realistic option, at least for the foreseeable future, certainly not for a number of months.

Unfortunately, travel in general and tourism in particular has the potential of being the perfect vehicle for the spreading of the pandemic just as trade, in the past, served to spread other pandemics across the globe. Keeping this in mind, most probably tourism would be the last economic activity to be reactivated once Covid-19 is sufficiently under control, at least on the European mainland.

It is understandable that the Ministry for Tourism seeks an early scaling down of the restrictions on travel and consequently on the sectors servicing the tourism industry. It has however to be underlined that this is not realistic to achieve in the short term. It is also dubious as to what lies in store in the long term.

The economy of the greater extent of Southern Europe, and in particular that of Mediterranean countries, is reliant on tourism primarily through providing reasonably priced holidays, not just during the summer months, for citizens of Northern and Central Europe within an EU single market. Low-cost flights throughout the European area further adds to this web of dependence.

Even though in this context it is difficult to plan ahead, one thing is certain: the future is as yet undefined and tourism will never be the same. Recovery will be as painful as the waiting time. Tourism is definitely on its knees.

Published in The Malta Independent on Sunday : 3 May 2020

Il-Covid-19 u l-privatezza tagħna lkoll

Bħalma nagħmel kważi kuljum, iktar kmieni smajt il-konferenza stampa li taġġornana b’dak li qed jiġri dwar il-pandemija Covid-19.

Hi aħbar tajba li illum ma kien hemm ħadd li irriżulta pożittiv għall-Covid-19. Għalkemm kif emfasizza Chris Fearne is-sitwazzjoni tista’ tkun differenti tul il-ġranet li ġejjin, dan xorta hu punt importanti. Mertu kbir lill-awtoritajiet tas-saħħa li ħadmu ħafna u li ippreparaw ruħhom sewwa biex jistgħu jagħtu l-aħjar servizz lill-pajjiż.

Nirrikonoxxi ukoll l-impenn ta’ Chris Fearne Ministru tas-Saħħa li kien kapaċi jimmotiva lill-istaff mediku u paramediku tal-pajjiż biex jagħtu l-aħjar possibli. Grazzi.

Fil-konferenza tal-aħbarijiet tal-lum il-Ministru tas-Saħħa emfasizza ukoll li mhux ser tinħareġ l-ebda app għall-contact tracing. Napprezza li l-Gvern (għall-inqas s’issa) qiegħed attent dwar issues ta’ privatezza.

Ma nifhimx kif dan il-punt importanti ma ġiex rappurtat mill-gazzetti ewlenin ħlief mill-Malta Today li irrapporta hekk:
“In the coming days, a new app will be launched which will allow users to gauge any symptoms they may be expriencing and advise them on their risk of having been infected and whether they should get tested.
Fearne said that this would be an app to help with determining whether a person should be tested, not be a contact-tracing app. Malta, he underlined, was not yet ready to introduce a contact-tracing app, since various privacy concerns with such applications had not yet been conclusively addressed.”

Alternattiva Demokratika temfasizza li huwa importanti li l-privatezza tkun imħarsa. Huwa tajjeb li l-Gvern dan qiegħed attent għal dan ukoll.

Il-bieraħ AD ħarġet stqarrija importanti dwar dan is-suġġett u emfasizzajna li ħadd ma għandu japprofitta ruħu minn din il-pandemija biex jipperikola l-privatezza tagħna lkoll.

Il-pubbliku b’mod ġenerali qiegħed jikkoopera. Dan ikompli juri li ma hemm l-ebda ħtieġa ta’ miżuri drastiċi. Huwa neċessarju li dejjem inżommu sens ta’ proporzjon fil-miżuri li jittieħdu. Huwa tajjeb li s’issa dan is-sens ta’ proporzjon inżamm. Dan jawgura tajjeb.

Għalhekk ukoll qed naslu!

Grazzi.