Business Agenda Issue 22 by Malta Business Bureau

THIS ISSUE

Issue 22 | SPRING 2015

POLITICS

business agenda

NEWSPAPER POST TOURISM

Insight on the current and future plans aimed at attracting a greater number of visitors to our shores during the leaner months of the year.

page 12

MEPs Miriam Dalli and Roberta Metsola have their say on the EU’s involvement in the search for solutions to the current unrest in the south Mediterranean region, particularly in Libya.

page 9

INTERVIEW Daniel Calleja Crespo, European Commission Director General for SMEs discusses the challenges and opportunities that lie ahead for European SMEs.

anniversary 2009 2014

THE Official Business publication of the Malta business Bureau

Prospects for economic growth in eurozone looking up despite long road to recovery According to Central Bank Governor Josef Bonnici, the outlook for the euro area is expected to improve due to a number of factors. He lists the public sector purchase programme (PSPP) that commenced in March, the depreciation of the euro, the fall in energy prices and the EU Investment Plan, as main contributors. He warns, however, that there remains a disparity in the economic performance and outlook among

page 32

DESIGN Looking to enhance your office space? Turn to page 35 for some useful tips.

page 35

INTERVIEW Romanian S&D MEP, who is co-Chair of the European Parliament intergroup on Tourism, Ana-Claudia Țapardel, speaks of the efforts to put tourism at the top of the EU agenda.

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the EU member states, even if this divergence is declining.

trying to see who is to bear the buck.

Together with BOV Chairman John Cassar White and Economist Gordon Cordina, Prof. Josef Bonnici discusses the current state of the eurozone economy in view of the existing climate. Dr Cordina compares the situation in the eurozone to a business which has been defrauded by a third party and now that debts are due, interested parties are

Mr Cassar White, on the other hand, argues that confidence in the real economy is crucial and believes that confidence is slowly returning to the real economy in the eurozone, but that it is still early days to conclude that we are out of this long period of sluggish economic growth and high unemployment. See full story on page 5.

Malta Business Bureau releases Annual Report for 2014 The Malta Business Bureau published its annual report for 2014 highlighting the various unprecedented achievements of the MBB throughout 2014, which are expected to lead to more ambitious projects in the coming years. Undoubtedly, the highlight was the completion of the EU LIFE+ Investing in Water Project, which resulted in an annual saving of 141 million litres of water, which

amount to the average consumption of two medium sized fourstar hotels and three large factories. As a result, the MBB was awarded the ‘2014 National Enterprise Support Awards’ by the Ministry for the Economy, and subsequently classified as runner-up at the ‘European Enterprise Promotion Awards’ during an award ceremony held in October. This was the highest ranking ever achieved by a Maltese organisation.

The MBB Annual Report was produced and published by Content House Ltd. In order to obtain a copy of the Malta Business Bureau Annual Report 2014, visit www.mbb.org.mt or contact the MBB on E: info@mbb.org.mt

BUSINESS AGENDA | SPRING 2015

editorial

Supporting our businesses in going international There are three types of enterprises â&#x20AC;&#x201C; those that operate within a community with no particular aspirations to grow, those that consolidate their position in their national territory, and the most ambitious of the lot that aim to internationalise and penetrate new markets. Many associate going international with big multinational corporations. Little do they know that internationalisation is both realistic as well as a highly recommended opportunity for SMEs. Particularly in Malta, where the size of the domestic market is small and acts as a limiting factor on competition possibilities, enterprises need to be encouraged to look beyond our shores and expand their operational activities. On the other hand, firms themselves must realise that in todayâ&#x20AC;&#x2122;s world it is not enough to be an established company. If they intend to keep up with competition and remain relevant, it is highly advisable to consider expanding to new markets and find new distribution channels. After all, Malta is part of the European Single Market, and unless Maltese SMEs

make the best of its potential, they risk becoming marginalised by foreign competitors opening operations in Malta, particularly in sectors renowned for profitability. As part of the process of going international, firms may be required to carry out thorough market research, invest in the development of new products, upgrade operational processes, purchase new premises or even acquire other businesses. All this may be perceived as risky, but which business is ever set up without a risk element? The EU recognises the importance of cross-border business and internationalisation, and to this effect created what is known as the Enterprise Europe Network (EEN). The main objective of the EEN is to open doors for European SMEs that want to grow by helping them make the best of opportunities in the EU and beyond. With EEN representations established in all EU regions and in other key global markets, SMEs can have access to information ranging from EU policy to international tenders, as well as

facilitated means to connect with businesses from all sectors. In Malta to date this service was provided by Malta Enterprise. A new work programme came into effect as of January 2015, whereby the European Commission revised and overhauled the EENâ&#x20AC;&#x2122;s strategy and objectives. In view of these changes, four local organisations came forward and offered to pool resources and make their expertise available to offer a more consolidated and value-added service to the local business community. In this respect, the new EEN services in Malta for the coming years will be delivered by a consortium of business organisations that include the Malta Business Bureau, Malta Enterprise, the Malta Chamber of Commerce, Enterprise and Industry, and the Malta Council for Science and Technology. The collaboration between the four partners will be shortly communicated to the media with the launch of this initiative in the coming days. Through the EEN, the consortium will be offering a number of services to help local SMEs internationalise. First and foremost, through its counterparts in

all other EU regions, EEN Malta will be able to source first-hand information about market conditions and jurisdictions in other member states. This will save Maltese companies valuable time and resources when carrying out basic market research and also supersedes the language barriers. Secondly, through the EEN, numerous brokerage events are organised annually in the EU to bring together businesses operating in different sectors. If a firm is interested to expand or find collaborators in a particular market, the consortium can use its contacts in that particular region to organise specialised visits for the firm to meet with potential business partners individually. But perhaps the biggest and most exciting challenge for the consortium will be its proactive approach to encourage local enterprises to expand abroad. On this objective in particular, EEN Malta will be offering mentoring and specialised consultancy services to companies that have the potential to internationalise, but lack some elements in their

By Joe Tanti, Chief Executive Officer, MBB structures to make the leap forward. There are certainly many other generic services that will be provided, such as the provision of information on EU policy through seminars, consultation with businesses on specific EU legislation and reporting to the European Commission, as well as alerting enterprises about EU tenders that may be of particular interest to them. I take this opportunity to invite our readers to contact the Malta Business Bureau should they wish to learn more about the Enterprise Europe Network and see how it can be of service to their business needs.

The Malta Business Bureau is a non-profit making organisation acting as the European-Business Advisory and Support Office of the Malta Chamber of Commerce, Enterprise and Industry, and the Malta Hotels and Restaurants Association. The MBB has two offices, the Head Office in Malta and the Representation Office in Brussels. Publisher

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Deputy Editor: Martina Said

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Business Agenda is the quarterly publication of the Malta Business Bureau. It is distributed to all members of the Malta Chamber of Commerce, Enterprise and Industry, all the members of the Malta Hotels and Restaurants Association, and to all other leading businesses by Mailbox Distribution Services, part of Mailbox Group. Business Agenda is also distributed by the Malta Business Bureau to leading European and business institutions in Brussels.

BUSINESS AGENDA | SPRING 2015

COVER STORY

Economic outlook in the eurozone ‘improving’ – Central Bank Governor Josef Bonnici While confidence slowly returns in the eurozone economy, the devaluation of the euro and unsteady situation in Greece mean it is still too early to tell whether an end is in sight to the long period of sluggish economic growth and high unemployment. Sarah Micallef takes stock of the situation with economist Gordon Cordina, BOV Chairman John Cassar White and Central Bank Governor Josef Bonnici. Leading economist Gordon Cordina likens the current situation in the eurozone to “a business which has been defrauded by a third party and now that debts are due, interested parties are trying to see who is to bear the buck.” Identifying the stresses as being essentially between the creditors to Greece, the EU member countries’ taxpayers and the Greek population, he maintains, “as life is never fair, those who ran with the money are nowhere to be seen.” According to BOV Chairman John Cassar White, prospects for economic growth in the eurozone are slightly better than they were a few months ago, which he credits to the devaluation of the euro and the fall in oil prices. Having said this, he warns that longterm structural reform issues persist. “The geopolitical problems affecting the eurozone are another issue that makes me

cautious about predicting the end of the economic crisis. If Greece’s problems persist for much longer, the eurozone’s stability will persist.” Continuing on his defrauded business analogy, Dr Cordina reflects on the situation with Greece, maintaining, “perhaps the only remedy is for the business to get its act in order to prevent itself from being defrauded again and enhance its performance so as to be able to meet its obligations.” In order to do this, he says, “the country needs to set up a modern fiscal infrastructure, a balanced macroeconomic policy with sound welfare and supply side programmes, and convince lenders to become investors in growth-promoting projects.” Asked whether he foresees Greece’s departure from the euro area, Dr Cordina maintains that it is an unlikely outcome, since

a departure by Greece from the eurozone would also mean a departure from the EU, and a reversion to economic isolation. “I have difficulty understanding how this can be in the best interests of creditor countries, and how this would increase the likelihood of debt repayment by Greece.”

Gordon Cordina Apart from the specific situation in Greece, the economies in various member states like Italy, Por-

tugal and Spain are also facing challenging times. Asked whether a light at the end of the tunnel is visible in these instances, Dr Cordina feels that it is not a question of predictions, but one where the outcome is very much dependent on the decisions made in respect of the macroeconomic policy and structural adjustment in each of these countries. “The potential of course exists. The countries have the resources and know-how to be internationally competitive,” he states.

Elaborating on the effect of these factors, he says, “the PSPP is expected to further ease broad financial conditions in the euro area and help to bring inflation close to the target. As banks and other financial-market participants reduce their holdings of home-country sovereigns, they free up their balance sheets for the acquisition of other assets. This includes extending more credit to business, hence boosting investment outlays and economic activity.”

Central Bank Governor Josef Bonnici believes that a number of factors are expected to improve the outlook for the euro area. He lists the public sector purchase programme (PSPP) that commenced in March, the depreciation of the euro, the fall in energy prices along with the EU Investment Plan known as the Juncker Plan to be among them.

Prof. Josef Bonnici Prof. Bonnici also maintains that falling oil prices have mixed effects on the economy, explaining that while cheaper energy cuts production costs, it also exerts downward pressure on the rate of inflation at a time when this is below the two per cent target. Aside from this, “the recent depreciation of the euro strengthens price competitiveness visà-vis competitors outside the euro area, supporting external demand,” he adds. Bringing the weakness of the euro versus the sterling and the dollar to bear on local banks, Mr Cassar White affirms that banks are more affected indirectly by how their clients are impacted by the eurozone crisis. Pointing to areas which could benefit from the fall in the euro’s value, he says, “because a large proportion of our tourists come from the UK, the strengthening of the sterling should have a beneficial effect on our tourism industry. Most of our exports of goods and services go to eurozone countries, so the fall

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COVER STORY in the value of the euro will generally be neutral on us.” Having said this, Mr Cassar White feels that the price of oil remains a big question. “The strength of the dollar as well as oversupply are keeping the price of oil low, but no one can say for how long this will last. So relying on a low euro and low oil prices could not be good reasons to postpone further structural reforms especially in our pensions, health and educational systems,” he warns.

Indeed, Dr Gordon Cordina believes that “the eurozone does not need, nor deserve a strong euro.” Stating that its main priority for the years to come is job creation, Dr Cordina maintains that the eurozone needs price competitive exports. By this reasoning, the weakening of the euro may be a blessing in disguise. “I believe that the European Central Bank (ECB) should pay more attention to export price competitiveness rather than inflation in the formulation of monetary policy; and this would also involve keeping the currency at levels

which are stable, predictable and conducive to job creation,” he states. Quoting the latest ECB forecasts, Central Bank Governor Prof. Bonnici explains, “the growth rate of the euro area economy in 2015 was revised upwards from 1.0 per cent to 1.5 per cent, while the forecast for employment growth was adjusted from 0.6 per cent up to 0.9 per cent.” He warns that there remains, however, a disparity in the economic performance and outlook among the member

states, even if this divergence is declining. Having said that, Prof. Bonnici believes the outlook for economic activity in the euro area is improving as the effects of adverse factors hampering the recovery continue to recede. Moreover, with the progress already achieved in deleveraging and re-capitalisation, the banks’ balance sheets are increasingly freed up for more lending activity, with a beneficial impact on the domestic component of demand, particularly on investment. “The reduced

exchange rate further supports external demand. The implementation of structural reforms strengthens business sentiment and boosts sustainable growth. These factors are also expected to raise the inflation up towards the target.” Attributing the euro’s fall, in part, to the better performing US economy as well as the softer monetary policy stance taken by the ECB, BOV’s Chairman maintains that it remains to be seen how the US monetary authorities will react to the increasing appreciation of the dollar, in hopes that it will not lead to protectionist tactics on the part of the US. Looking to the long-term, he states, “the euro will continue to be affected negatively by the lack of progress on the political level to strengthen the eurozone economic governance by strengthening economic and fiscal cohesion.”

John Cassar White On his part, Mr Cassar White feels that the banking sector in Europe will be stronger in future but less profitable. He names over-regulation as a potential risk, arguing that it could discourage banks from taking bigger risks to support industry even if regulators insist that the low cost money that is being made available to commercial banks should make it easier to lend. Lending, he maintains, is not only affected by interest rates. “Confidence in the real economy is crucial. To build confidence and invest, entrepreneurs need to see that consumers are more optimistic and are prepared to spend more. I believe that confidence is slowly returning to the real economy in the eurozone, but it is still early days to conclude that we are out of this long period of sluggish economic growth and high unemployment,” he says. Indeed, the Central Bank Governor explains that even if a direct effect of the PSPP is the lower cost for governments to issue or rollover debt, this positive effect should not distract governments from their efforts to put the economies of the euro area back on track. “Full and consistent implementation of the Stability and Growth Pact is key for market confidence in fiscal policy,” he warns, adding that structural reforms should be implemented in a timely manner. “The combination of improved economic structures and sound fiscal policies has the potential to make monetary policy in the euro area more effective by encouraging economic actors to take advantage of improved financing conditions,” he concludes.

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POLITICS

Security in the Mediterranean: where does the EU stand?

In view of the ongoing geo-political security uncertainties in the Mediterranean, particularly in Libya, DANIEL DEBONO discusses with MEPs Miriam Dalli and Roberta Metsola the involvement, or lack thereof, of the EU institutions. The Arab Spring has lasted more than the anticipated season. After more than three years, North Africa – particularly Libya – is still in deep political turmoil. As a consequence, the Mediterranean region has been facing one of the most challenging times in recent history, both from a humanitarian and an economic point of view. Undoubtedly, due to the proximity to its southern borders, this unrest is having its effect on the European Union. The irregular migratory movements and high stake business interests have pushed the regional conflict on top of the EU agenda. European Commission President Jean Claude Juncker has gone as far as committing himself to draw a new policy on migration in his list of ten priorities included in the political guidelines for this legislature. MEP Miriam Dalli believes the impact that the current unrest in Libya has on our continent is multifaceted. “First and foremost, the lack of governance and rule of law is resulting in Libya becoming a breeding ground for extremist and terrorist groups that are setting up training camps and gaining ground in key areas at the EU’s border.”

She notes how “we, as Southern Europeans are also confronted with an ever-increasing number of migrants who have been based in Libya for a number of years and who are now doing their utmost to find a way to get to Europe in order to flee. This current situation is something that we need to address and help resolve in the best interests of all people of good will in Libya and in the interest of our own citizens.”

Miriam Dalli From a commercial point of view, Dr Dalli is concerned for the number of European businesses based in Libya that had to suspend their operations. “This translates into a huge loss in revenue, with millions of euros in immobile assets which risk being ransacked and an idle workforce which most of the time ends up still being kept on the payroll

of an already financially overstretched company,” she says.

other than a home-grown, Libyan-led solution.”

MEP Roberta Metsola agrees that the unrest in the Mediterranean and in Libya in particular has a huge impact on the European Union. “We have pushed for the EU to take a proactive approach to the issue, and only last month I led a debate with High Representative Federica Mogherini on the issue within the European Parliament. We must ensure that the EU keeps the issue at the forefront of its agenda. The current unrest has implications for security, tourism, business interests in Libya and immigration,” she argues.

“We need the UN and the Arab partners to take the lead. The Arab partners are crucial players in finding a solution to the Libyan conflict. If we want to have a successful solution it has to be a solution coming from the Libyan people to the Libyan people.” – Dr Miriam Dalli

Dr Metsola also expresses concern for Maltese businesses with interests in Libya, whom she fears are moving from a temporary lull in activity to a practical shutdown of operations. “We also need to be there for those companies as they assess the impact on their economic activity in the region,” she says. Dr Metsola believes in the important role that can be played by the EU, particularly in facilitating the UN brokered talks between different factions in Libya. She notes that “as much as we can try to square the circle, there are no other real, viable, good options

On recent developments at EU level, Dr Metsola believes it is positive that Prime Ministers discussed Libya and agreed on a set of conclusions in the last European Council in March. Asked if she thinks these are ambitious given the gravity of the current situation, she states “I believe, like many others, that the conclusions could have and should have been more ambitious. For example, I would have liked to see a commitment to re-deploy EUfunded naval forces to the Mediterranean to help boost security and save lives. I would also have liked to see more assets being

allocated to Frontex to help their joint operations.” For Dr Dalli, the most important aspect of the European Council conclusions is that the EU as a whole shoulders collective responsibility and is not leaving it to one member state to take any unilateral action. “I always stressed that any action in Libya has to be mandated by the United Nations and I was always against any unilateral actions by one particular country. We need the UN and the Arab partners to take the lead. The Arab partners are crucial players in finding a solution to the Libyan conflict. If we want to have a successful solution it has to be a solution coming from the Libyan people to the Libyan people,” she states. Dr Dalli continues, “all efforts should be concentrated towards preserving the Libyan state and creating a unity government. In this regard it is crucial that preparations by the European Union are underway so as to provide the proper support for when a national unity government is formed.” However, as members of the European Parliament (EP), do Dr Dalli and Dr Metsola think the

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POLITICS EP could play a more active role, and offer more tangible solutions towards the fast deteriorating situation in Libya in addition to January’s motion for a resolution on Libya? Dr Dalli notes how the EP has been keeping up the pressure on the Libyan issue for quite some time. But it is just one institution out of three and she wants to see much more commitment from the European Commission and the Council, while reiterating that the latest Council conclusions are a step in the right direction.

“It was also positive to see that European Council President Donald Tusk visited Malta, Tunisia and Spain to specifically discuss the instability in Libya and the situation in the Mediterranean. The work that is being carried out by MEPs in the EP and by key member states like Malta and Italy is pushing the European Union to focus more on what’s happening in the south of the Mediterranean. I obviously want to see more and I would like to see Libya on the agenda of the upcoming Councils,” says Dr Dalli.

Dr Metsola agrees. She notes that while the EP is at the forefront of the debate on Libya and has played its part in pushing the issue on to the EU's agenda, we need to stand by the Libyan people as they carve out a way towards a unity government. At the same time, she insists that all the EU institutions and member states – including Malta – must come together on this issue. Specifically on migration, in 2014 the EU registered close to 650,000 applications for international protection, representing an

Roberta Metsola increase of 40 per cent compared to 2013.

Dr Metsola believes that without a solid European holistic approach that tackles every facet of the issue, we will not get anywhere. She confirms that she was recently chosen as one of the rapporteurs together with an S&D representative to draft a report on a comprehensive approach to migration. “We are determined to present a product that addresses the issue and one that will finally mean that Europe gets to where we need it to be,” she says. According to Dr Metsola, the EU's system is under pressure. “Our approach needs to encompass both the internal and external dimensions, including tackling the root causes and the situation in crisis areas,” she says. This can be done by addressing the routes of migration and the situation in the most affected member states; upping our fight against human trafficking and the hubs of organised crime; looking into systems of legal migration to ease the humanitarian situation in crisis areas; as well as improving our return policies and a better coordination and humanitarian support towards third states.” Dr Dalli states that she welcomes the assertion made earlier this year by Ms Mogherini that she would be directly involved in immigration policy. “I thought that at last, the message is getting through. Recently we have been informed that the Commission is planning a review of its policy on the issue which should be made public in May.” “We need to establish a mechanism whereby member states on the periphery of Europe are not the only states carrying the responsibility for mass amounts of migrants, while other member states are left unaccountable,” she continues. “When proposing things we need to make sure that whatever is being proposed does not worsen the situation rather than address it properly. We also need to ensure that member states welcome an amount of people proportionate to their reception facilities. Finally I believe that in order to find a durable solution, the EU also needs to work closely with the developing world by fostering democracy, rule of law and fundamental human rights,” she claims.

“I believe, like many others, that the conclusions [of the last European Council held in March] could have and should have been more ambitious. For example, I would have liked to see a commitment to re-deploy EU-funded naval forces to the Mediterranean to help boost security and save lives.” – Dr Roberta Metsola

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TOURISM Photo: Maurizio Modena, viewingmalta.com

Drive to achieve ‘higher yield tourism activity’ across the board

Following a string of successful achievements in Malta’s tourism industry and record years registered in succession, Martina Said asks leaders in the industry what is being done to attract greater numbers to our shores during leaner months, and whether it’s enough.

It is no secret that Malta’s tourism industry has enjoyed substantial growth in the last few years, with record numbers achieved year after year, and no signs of slowing down. Statistics for 2014 released by the National Statistics Office show that inbound tourism from January to December last year amounted to 1,714,533 – a significant increase of 7.8 per cent over the same period in 2013. Total nights spent by inbound tourists also went up by 4.9 per cent, reaching 13.5 million.

“We’re concentrating our efforts on discussions with air service providers for the operation of year-round routes, the creation of a year-round events calendar... and the positioning of Malta and Gozo as year-round destinations through all marketing messages.” – Paul Bugeja

Total tourism expenditure for 2014 was estimated at ¤1.5 billion, meaning an increase of 6.1 per cent over the same period of the previous year, although total expenditure per capita dropped slightly from 2013, and stood at ¤905. Notwithstanding this overall positive assessment, there is a common agreement that the large numbers of tourists during the peak summer season cannot compensate for the drastically fewer numbers during the shoulder months, and a call for a unified approach towards attracting more visitors in the quieter months of the year. Paul Bugeja, CEO of the Malta Tourism Authority (MTA), says the difficulty with setting and achieving new milestones in record numbers each year is based on two primary factors: “there is the challenge of retaining previous achievements given that on 1 January each year we start from scratch, and the challenge of continued growth of the industry through a number of factors such as off-peak growth, the relationship between tourism headcounts and nights stayed, and the attraction of higher yield tourism activity across the board.”

Paul Bugeja In recent years, emphasis was placed on attracting large volumes of visitors to our shores, a goal which was achieved successfully. Mr Bugeja says now that such targets have been reached and superseded, not forgetting that matters cannot be taken for granted, efforts could be shifted from attracting volume growth to more qualitative growth. “This entails a process of shifting within existing markets by getting more of what we want and less of what we no longer consider as attractive as when volume growth was the absolute priority.” Mr Bugeja says the MTA is constantly working towards spreading numbers over the shoulder

months through a number of initiatives. “We’re concentrating our efforts on discussions with air service providers for the operation of year-round routes, the creation of a year-round events calendar with special emphasis on off-peak events, the introduction of new products aimed at tourists travelling during those months of the year, and the positioning of Malta and Gozo as year-round destinations through all marketing messages. The setting up of Conventions Malta is also part of this strategy.” Mr Bugeja adds that while the reason to visit the Maltese islands during the peak summer months is generally homogenous and centres around the concept of a summer coastal holiday, the reasons for visiting during the rest of the year are widely fragmented. “It therefore follows that Malta needs to capitalise on the multi-faceted offer which it has been blessed with, and to present different products and experiences to different audiences, with a new focus on religious groups, conferences, weddings, sports and related events. Gozo and Valletta are also at the centre of our marketing activities.”

The mass of tourists visiting during the peak months arguably places a noteworthy strain on the islands’ infrastructure. Mr Bugeja explains that, by and large, the general infrastructural deficiencies which in the past showed signs of strain during peak tourism activity, such as energy and water, are today operating below maximum capacity and are no longer considered to be major limiting factors. “There are, however, other aspects such as domestic transportation and pressures on particular locations and facilities during peak summer months which necessitate a stronger element of visitor management and the need to provide viable and realistic alternatives to spread visitor concentrations in a more manageable and sustainable manner,” he says. CEO of the Malta Hotels and Restaurants Association (MHRA), Andrew Agius Muscat, highlights other strains on the islands’ infrastructure during peak months –“our sandy beaches are too few, too small for the numbers of tourists that we have managed to attract. Beyond any rhetoric addressing whether Malta has reached a saturation point in terms of

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tourism “Government needs to urgently address challenges concerning our road network infrastructure and general upkeep of our external environments, security measures in particular across tourism zones and public transport.” – Andrew Agius Muscat tourist numbers, Government needs to urgently address challenges concerning our road network infrastructure and general upkeep of our external environments, security measures in particular across tourism zones and public transport.” He adds “other issues that need to be addressed relate to the supply of appropriately trained employees in hospitality and tourism-related services, in particular front line operators. The private sector, on the other hand, needs to ensure that the longterm sustainability of its investment against return is adequate enough to further invest in maintaining a fresh and adequate product to ensure better competitiveness. The eminent reduction by 25 per cent in energy bills, which is a direct result of MHRA’s consistent and assertive lobby efforts, should contribute favourably in achieving this objective.”

Andrew Agius Muscat Agreeing that quality tourism should be a priority in the efforts of all parties working in this sector, Mr Agius Muscat says that in fact, Government has recently endorsed the MHRA’s call to adopt a long-term vision in devising an updated national policy for tourism. “The crux of our argument revolves around the need for quality tourism, that is, to instil a quality attitude in everything we do and decide related to the tourism sector,” he says. “MHRA believes that to date, a lot has been achieved, however there is still much more to do in order to achieve this goal. A quality tourism attitude will not only improve the competitiveness levels of our islands in mass tourism markets, but will also set the right foundation to eventually, and when deemed appropriate, develop the luxury tourism segment.”

Doing its part to promote Malta during the shoulder months, Mr Agius Muscat says that the MHRA acts as a catalyst to promote events related to sport, entertainment and culture mainly organised during offpeak months. He asserts that the Association is in discussion with the Ministry for Tourism and the MTA to implement these initiatives in the coming months, in particular those that are opening up new opportunities and new markets.

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TOURISM With increased access to and from Malta, and the introduction of numerous new routes, it has long been clear that the number of tourists visiting the islands and seat capacity have direct effects on each other. Mr Agius Muscat is in agreement, adding that connectivity is a critical variable in the country’s formula for success. “The introduction of low cost airlines, which was also politically spearheaded by MHRA, has proven to be another important step in the growth of the tour-

ism sector in Malta,” he says. “But connectivity should not be viewed in isolation when discussing and exploring avenues about how to increase the number of tourists during the shoulder months. More events should be organised during this period to enhance the experience for tourists visiting Malta during that time, an objective which we are pleased to note MTA is working very hard to achieve.” Mr Bugeja on behalf of the MTA adds that the major challenge with respect to increasing seat

capacity during the lean period is to convince airlines to do so without placing further pressures on the peak period, which is the preferred season for airline operators given the stronger demand and higher prices, with obvious better yield for all. Air Malta Chairperson Maria Micallef contributes to the discussion, and asserts that since summer lasts longer in Malta, everyone in the industry has an interest in enticing visitors to keep enjoying Malta’s excellent weather and culture even throughout the shoulder months. To this end, she asserts “Air Malta is crucial to extending tourism in these months. Unlike other carriers, which only operate during the most profitable periods, we retain most of our schedule throughout winter to help boost tourism to the islands.”

Maria Micallef She says this must be complemented with marketing the island’s year-round attractions, and the Air Malta marketing team is constantly looking for opportunities to market Malta during the off-peak months. “We work closely with MTA to promote such events through advertising campaigns, special offers, on our website, social media channels, in-flight magazine and other platforms. Air Malta also strives to offer flexible fares to generate more demand in offpeak months.”

“Air Malta also strives to offer flexible fares to generate more demand in off-peak months.” – Maria Micallef By stimulating demand, however, Ms Micallef says the airline must be prepared to respond to growing demand with the necessary seat capacity. “This is why we are always looking at our route network to make it more efficient and effective, even though we must work within the constraints of our Restructuring Plan which limits the number of flights we can operate as per the agreement with the European Commission.”

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CULTURE

Malta’s cultural renaissance?

Klezmorinights Malta at Teatru Rjal

With V18 now less than three years away, cultural momentum is fast gaining ground. But what does that mean for Malta’s culture scene and its practitioners? Jo Caruana speaks to three industry experts to find out. There is no doubt in my mind that Malta’s cultural scene is booming. We’re now spoilt for choice on any given weekend (or day, for that matter), with a plethora of quality events to choose from across the mediums of dance, drama, comedy, music, opera, art, photography and more. As someone who enjoys attending as many of these events as possible, I have come to realise that it’s simply not possible to keep up anymore; there aren’t enough hours in the day to see, hear and experience everything that our artists and cultural leaders have been busy creating for us. And while that’s a shame, I also think it very exciting that, as a cultural community, we have reached this point. It is something that would have seemed unheard of a mere decade ago, and I believe it is something we,

as a nation, should be very proud of.

Caldon Mercieca Of course, with Valletta’s role as Europe’s 2018 Capital of Culture (V18) now just three years away, there has been a definite drive to boost the quantity and quality of our cultural scene. So, with that in mind, could this era in our artistic development be considered Malta’s cultural renaissance?

“We are in the process of developing and refining a language with which to have a distinct voice in the international conversation of the role of art and culture in today's globalised society.” – Caldon Mercieca

“The effects of the Valletta 2018 preparations can definitely be felt on a number of levels,” says Caldon Mercieca, Manager of the Culture Directorate and Project Leader of the Valletta Design Cluster. “For one thing, several cultural organisations are working together for the first time on joint projects, and this is influencing the way decisions are made, the way funds are allocated and the way people collaborate during the build-up stage of cultural projects.

traditional culture is a great way of developing our own idiom of contemporary art,” he says. “It helps us have parallel processes to international developments in this field, and, thus, not to be completely dependent on importation and passive consumption. “Basically, we are in the process of developing and refining a language with which to have a distinct voice in the international conversation of the role of art and culture in today's globalised society.”

“Secondly, we are seeing a new emphasis placed on contemporary artistic work, which we never had in such an insistent manner previously. This is resulting in the opening up of all sorts of opportunities for artists and cultural practitioners, giving them the chance to explore the links between contemporary art and community life, in various contexts.”

Dr Georgina Portelli, the Chair of the Creativity Fund, also believes that we are at the start of something culturally wonderful, but stresses we need to keep our eye on the ball. “This visible spike in activity is welcome but I think we should up the game a bit more and move beyond the obvious,” she says. “We need to be proactive in getting the culture and arts sector to fully own it, be less prickly about constructive criticism and embrace the spirit by building a sound coalition for culture.”

But, as Mr Merceica stresses, we are still at the beginning of this process. “Having people experience and speak about the complementarities and incongruities of contemporary art and

“V18 is a carpe diem moment for us. It is a tremendous oppor-

tunity for the culture and arts sector, Valletta and the whole of Malta and Gozo. It has had some stop-start moments but seems to be picking up pace, and I look forward to seeing that continue,” she asserts.

Georgina Portelli Asked to highlight key milestones in Malta’s recent cultural past, Toni Attard, Director of Strategy at Arts Council Malta, recalls several. “There is no doubt that, in the past 10 years, the number of projects and the investment in the cultural sector have increased dramatically,” he explains. “As part of the EU, Malta has been given access to more mobility and cooperation.

BUSINESS AGENDA | SPRING 2015

CULTURE “V18 is a carpe diem moment for us. It is a tremendous opportunity for the culture and arts sector, Valletta and the whole of Malta and Gozo.” – Dr Georgina Portelli Thus, more and more, young people are beginning to consider the creative sector as a profession, and culture has risen in the national agenda. There is a lot to be proud of: the setting up of ZfinMalta, new museums, extensive restoration programmes, increased funding – these have all been important milestones, as is the increased number of professional cultural managers trained in the sector. “In addition, public funding programmes have increased from ¤100,000 to ¤1.4 million in five years, while new festivals, such as ZiguZajg and VIVA, are also part of the work towards a V18 legacy. The work on the creative economy, led by the Finance Ministry, was an important process to kick-off a wider national agenda.” Mr Attard believes that having a culture sector that is gaining momentum sends a strong message. “Come 2019, there will be no time for a cultural hangover,” he says. “Ultimately 2018 is not a deadline – it provides impetus and focus; it is a milestone

in Malta’s long-term vision for a dynamic cultural sector.

Toni Attard “V18 is not just an event during a particular year but a unique opportunity to ensure a longlasting legacy for the city, the country and the cultural engagement of our communities. Ultimately the legacy should reflect increased cultural participation, a stronger presence of contemporary culture, more international cultural collaboration and improved cultural infrastructure. I would also like to see increased sustainable professional activity in the cultural and creative sectors.”

Agreeing, Mr Mercieca believes that V18’s main legacy should be to valorise the potential of professional careers in the cultural and creative sector. “Without such an effect, the legacy of 2018 will have no lasting impact on Malta's cultural life. The challenge lies in us linking V18’s efforts in this direction with the other initiatives in the fields of education, creative enterprise support, community development and the internationalisation of Malta's offering,” he continues. “There is no single point of arrival in this process: Valletta 2018 is a catalyst in all of this and both individual and independent cultural players will need to take up the challenge and seek out opportunities further,” he argues. It is also hoped that business opportunities will continue to arise as a result of this cultural progress. In fact, as Mr Attard explains, Arts Council Malta will be developing a one-stop shop service to support creatives who wish to develop stronger business acumen. “We are also looking at engaging with the business community to create new markets for the sector in areas such as tourism and export,” he says. In line with that, Dr Portelli, in her capacity as Chair of the Cre-

ativity Trust Fund, would like to see the business sector doing its part by engaging and seizing the opportunities but also by focusing its corporate responsibility efforts towards supporting creativity and the arts. “We are far from having an established patron or donor culture for the arts,” she says. “It is in the business community's interest to embrace this as creativity engenders innovation.” “The cultural sector is effectively registering economic growth and there is a multitude of opportunities out there. But we need to address the skills gap to ensure growth and employability, and creatives need to have access to like-minded entrepreneurs and business start-up schemes so that ideas can flourish and the bar can be set higher.” With that in mind, Mr Merceica explains that a number of initiatives are currently being undertaken, such as the creation of the new Valletta Design Cluster, which provides a support framework for new entrants in the creative field. “This will facilitate their work, both in terms of business practices as well as in the innovation and tapping of the international market. These initiatives need to be coupled with the option to tap funding resources beyond the grant sys-

tems that are new well established, though,” he continues. “Essentially, we need to develop meaningful investment prospects for the new class of creative practitioners that support their unique creative offering while assisting them in accessing opportunities well beyond our shores. I look forward to a time when efforts such as the Valletta Design Cluster are embedded in the DNA of all cultural actors, and that career opportunities in the cultural and creative sector are considered legitimate and desirable prospects for young people in Malta and Gozo,” he adds. Similarly, Dr Portelli concludes that she is looking forward to Malta having a professionalised arts sector, “and a truly creative society that has its fair share of cultural capital which should translate in moving us out of the bottom league with regards to innovation on a European platform. I am optimistic.”

“Public funding programmes have increased from €100,000 to €1.4 million in five years.” – Toni Attard

BUSINESS AGENDA | SPRING 2015

INTERNATIONAL BUSINESS Malta’s citizenship programme is

“creating substantial interest from international investors” Following his recent appointment as Chief Executive of the Investment Migration Council – the Geneva based non-profit body self-regulating the citizenship-by-investment industry – Bruno L’ecuyer discusses the council’s role in the spheres of investment migration and citizenship-by-investment, and his thoughts on Malta’s own citizenship programme after 18 months in action.

Malta’s Individual Investor Programme (IIP), which began operating early last year among widely divided opinions as to its real value and implications on the country’s reputation, is now being perceived in a much better light compared to when it started out, says Bruno L’ecuyer, Chief Executive of the Investment Migration Council (IMC). He says investment programmes that result in third party nationals obtaining the right of citizenship in any country naturally generate passionate debate, and Malta is no exception. “Having been a party to discussions between the government and practitioners, I believe that the Government acted on the feedback from both local stakeholders and the European Commission which led to a revision of the programme. My most recent discussions with practitioners paint a far more positive picture than 18 months ago, and I am told that the programme is creating substantial interest from international investors who are able to bring both their financial and intellectual capital for the benefit of Malta.” Mr L’ecuyer ensues to define the role of the IMC, a self-regulatory body set up as a worldwide non-profit industry association of investment migration professionals, which has chosen Malta as its base for its secretariat office. “It brings together the leading stakeholders in the field, gives the industry a voice, and significant accountability. The purpose of the council is

simple and straightforward,” he explains. “It has been created by industry leaders and various governments who have, in the last few years, made repeated calls for the industry to introduce concrete structures to elevate public trust, and introduce transparent and reliable regulatory standards.” In view of his recent appointment, Mr L’ecuyer offers a clear defini-

tion of investment migration and citizenship-by-investment, both of which are regulated by the Council, based in Geneva. “Defining investment migration and citizenship-by-investment is not as simple as it might seem,” he asserts, “as it is crucial to realise that migration virtually always boasts an economic component. In the absolute majority of cases, meeting the basic requirements set for the acquisition of nationality and residence, especially permanent residence, necessarily comes down to the assessment of the (economic) contribution that the migrant makes to the host society: the regular payment of taxes, security of employment and the possession of necessary skills, all aiming to guarantee a stable contribution to society as opposed to reliance of the local social assistance schemes.” These aspects, however, have to be distinguished from investment migration, of which citizenshipby-investment is an important component. Mr L’ecuyer explains

that investment migration is different since the key emphasis is on the financial contribution that the migrant is willing and able to make for the benefit of the host society. “It is therefore not merely the presence of the financial component, which is of key importance for us – and is present in a number of migration and citizenship programmes around the world – rather, what is of importance is the key role played by the financial contribution in the programmes which are covered by the term.” Any visa or residence programme allowing for access into one or more countries based primarily, but not exclusively, on a significant financial contribution into the host society therefore falls under the term ‘investment migration’. “The same applies to citizenship by investment, which covers all the legal rules dealing with the conferral of nationality and zooms in on the financial/investment-oriented side of granting nationality, as opposed to other

elements, such as family ties with other citizens, sporting achievements, birth in a particular territory and the like,” he adds. “The definition is purposefully broad, to ensure that all the diversity of the investment migration and citizenship-by-investment programmes around the world fall within its scope.” The IMC’s mission is the result of a global consultation with the world’s leading professionals in the field. It involves setting the global standards in relation to residence and citizenship-by-investment and informing public policy in this field; promoting competence, continued professional development and high ethical standards among its members; improving public understanding and transparency of investor immigration and citizenship programmes; contributing to the scholarly field of investment migration, and being the trusted partner and the leading platform for professionals, academia and governments.

BUSINESS AGENDA | SPRING 2015

INTERNATIONAL BUSINESS In view of the delicate matters at stake, Mr L’ecuyer says that numerous key issues arise in the area of investment migration and citizenship-by-investment, which partly explains the need for an organisation like the IMC. What is crucial, however, is that any welldesigned investment migration programme aligns the interests of the clients and the governments, so that both sides benefit from the programme – and this is where issues usually arise. “Such issues could theoretically be resolved at the programme

design or implementation stage, but often go unnoticed for a long time,” he explains. “Plenty of mistakes can be made, undermining the interests of both the government and the clients. To name a few: the due diligence requirements established by the government eager to cash in on the programme are too lenient. While this can be presented as positive, since a visa/nationality is easier to acquire, it is highly problematic in the long run, as when such leniency is discovered, it undermines the trust of other states in the nationality granted,

reducing the value of investment for all the clients and, ultimately, undermining the financial viability of the programme. Similarly, programmes lacking in transparency or based on rules which are not sufficiently clear and strict, can suffer from corruption, undermining trust and value of investments.” On the flip side, says Mr L’ecuyer, the attractiveness even of a most diligently designed programme can be radically different from real life. “All in all, serious individual scrutiny of all the compo-

nents of each investment migration or citizenship-by-investment programme is required before any conclusions are drawn. The devil is always in the detail, but it is crucial to take the interests of both the clients and the governments into account at all stages. The programmes not actually benefiting the country establishing them are much more widespread than one might think.” Asked to elaborate further on Malta’s own programme, better known as Malta’s Individual Investor Programme (IIP), spe-

cifically on whether he thinks it will reap the economic returns it promises concretely, Mr L’ecuyer says that is for Government to answer in detail, although from a personal perspective, his answer is positive. “I speak to many practitioners here and abroad, and it is clear that the island is experiencing an increasing number of investors looking to make ancillary investments in Malta that have been initially attracted here by the IIP. Such investments take some time to come to fruition, yet this further serves to reinforce the benefits that the IIP can bring to Malta’s economy, but like any good programme, the full benefits will be felt over a number of years not months.” As detailed information regarding the success of the programme so far appears to be few and far between, on what basis can its success, or lack of, be measured? Mr L’ecuyer says a number of metrics could be used: “The financial investment is important, yet so too is the additional investment of successful applicants within other sectors of the economy, which in time will lead to job creation and further growth in the economy,” he asserts. “the programme should continue to operate with integrity and transparency, and the Government is charged with being able to demonstrate the benefits that the programme will bring to the Maltese people through investment of the funds generated. It is also important that the programme continues to operate effectively and efficiently with the most stringent due diligence continuing to be applied, to ensure that only meritorious applicants become future good citizens of Malta.” As for the IMC’s future prospects, a vision of establishing and promoting good practice standards is at the forefront of its immediate and long-term plan. Mr L’ecuyer says that currently, the council is focused on creating a Code of Ethics and Professional Conduct for its members to follow on a global level, creating a culture of professional excellence and ethical practice. “This code will apply to members of the council, who are practitioners with proven expertise and experience in investor immigration, a good reputation and clean professional and personal record. As for our long-term vision, it is straight forward: the Investment Migration Council will be the worldwide association for investment migration professionals, academics and governments to come together, providing a platform for cross-border exchanges.” Visit www.investmentmigration. org for information on membership and the requirements necessary for joining the Council.

BUSINESS AGENDA | SPRING 2015

ICT

Is automation the key to success? Tailoring your software to enhance efficiency

Bespoke software solutions can serve to boost the efficacy of businesses across different sectors and industries, relating to various fields including accounts, operations, storage and filing, sales and time management. Sarah Micallef speaks to the experts to find out when it’s worth developing bespoke software as opposed to buying an off-the-shelf solution, as well as the variety of solutions available for business today. Every business has its own reality, which is affected by both external and internal factors. Tailoring software to suit this reality is, according to Managing Director at Focus Software Solutions Anthony Lupi, like buying a madeto-measure suit. “It portrays your figure, it oozes confidence, it’s comfortable, it’s unique, and it’s yours. Bespoke software caters and works around your needs, not the other way round. You don’t want to fit in your clothes, you want your clothes to fit on you, right?” Indeed, tailored software serves to offer intelligent solutions which complement and enhance a company’s procedures to improve their efficiency and effectiveness. Alex Wells, Head of Application Solutions at SG Solutions Ltd also makes a good case for tailored software, asserting, “out-of-the-box applications inevitably always need flexibility to really add value to a business.”

Alex Wells Going on to name mobility as a case in point, Mr Wells maintains, “businesses need to have up-to-date real-time business information presented to them in a way where results are clear

and can be acted upon, on any device.” Moreover, these applications need to have in-built features for doing such adaptations in-house. “Tailored software removes the need for staff to have to perform time-consuming manual tasks outside of the standard features of an ‘out-of-the-box’ system. This not only saves time, but ensures all information has a single source,” he continues.

“Out-of-the-box applications inevitably always need flexibility to really add value to a business.” – Alex Wells Having a long list of satisfied clients including Salon Services Malta, Edricthon Group of Companies, Hotel Villa Rosa, EF International Language Schools, Office Group Ltd and Frank Salt Ltd, Focus Software Solutions

count bespoke software solutions, software for the real estate industry, business management software including inventory management, wholesale and distribution, point of sale, eShop and financials management among their list of services. Managing Director Anthony Lupi outlines the business sectors which most commonly opt for these services, naming the manufacturing sector, lawyers, architects, retailers, wholesalers and the real estate sector in particular.

He goes on to identify the point at which it becomes necessary for a company to develop bespoke software as opposed to buying an offthe-shelf solution, stating, “it is highly unlikely that you can find a system that addresses your exact requirements. It may suit your needs if the company is small, but as the organisation grows, so do its procedural requirements, its need for controls, the need to share and analyse information and the requirements by management. That is when you start feeling its limitations… bespoke software

BUSINESS AGENDA | SPRING 2015

ICT is specifically built to encompass the core of your strategy and to get the best out of it.”

“Bespoke software caters and works around your needs, not the other way round. You don’t want to fit in your clothes, you want your clothes to fit on you, right?” – Anthony Lupi

Similarly, SG Solutions has a diversified range of ICT offerings. Besides being the Apple Premium Reseller for Malta, the company supplies and maintains all bank ePOS (card payment) machines, is a Ricoh partner, with offerings around printers, scanners and auto-mailers, and provides data storage, business continuity solutions and hosted services to the private and public sector. From a business applica-

tions perspective, the company is a partner for Epicor ERP, providing software, implementation and support services, as well as document processing and OCR solutions, and point of sales solutions, as well as Oracle support for applications using Oracle databases. Currently approaching the end of the provision of data storage solutions for Government through MITA, Head of Application Solutions Alex Wells lists SG Solutions clients as banks, for which they provide audited processes and support; consumers, being the only Apple Service Provider; HORECA, mainly in relation to point of sale systems; and all sorts of businesses for which they provide print and office automation services, hosted services, ePOS terminals, data storage solutions and ERP, cash registers and smaller POS solutions. According to Mr Wells, it is worth developing a bespoke solution when the divergence between the business need and the closest off-the-shelf product is too great. “The best approach is to select a highly configurable off-the-shelf package, so functionality gaps can be filled through configuration as opposed to application development. That way, the system remains ‘tried and tested’,” he says. Looking toward the future within the field, Mr Wells highlights document management as an area the company is looking to build on, maintaining, “this is a general requirement of all business sectors, and we have a great solution offering for them.”

Anthony Lupi On Mr Lupi’s part, the strategy is to continue offering bespoke software solutions in accordance with the huge demand for such development in industry. “We are not only confident to work in industries that we are familiar with, but also very much looking forward to new and innovative projects and challenges. We also look forward to continue developing one of our newest products, the Focus 360 Suite. This is a Business Management Software which is not only valid for a variety of industries, but also one that can be flexible to various realities and needs.”

BUSINESS AGENDA | SPRING 2015

Business News

MBB Update 16th January –

Consultation session on trade secrets The protection against the misappropriation of business information and the safeguarding of confidential business practices were discussed during a consultation session organised by the Malta Business Bureau in conjunction with the European Parliament Information Office. The debate focused on the European Commission’s proposal for a directive on the protection of undisclosed know-how and business information against their unlawful acquisition, use and disclosure. This is better known as ‘trade secrets’. The discussion brought MEPs Therese Comodini Cachia and Miriam Dalli together with interested stakeholders from the

private sector, who exchanged views on how the draft EU legislation could affect commercial activities in Malta as well as cross-border business within the EU internal market. MEP Therese Comodini Cachia, who is a member of the Legal Affairs Committee (JURI), which is the lead committee in charge of the finalisation of the draft directive on trade secrets, explained how providing a harmonised legal framework to register trade secrets will strengthen the protection of the whole business value chain. MEP Miriam Dalli, who is a member of the Industry, Research and Energy Committee (ITRE), which

is tasked to present an Opinion to the JURI Committee on this directive, stated that the new directive has to reach a balance between the need to remove obstacles for SMEs and the need to protect trade secrets. The session was moderated by MBB CEO Joe Tanti and the Head of the European Parliament Information Office Dr Peter Agius. This consultation event was a first in a series of collaboration activities between the two organisations, which are intended to actively involve Maltese MEPs in a continued exchange of views with the local business community concerning ongoing EU legislative proposals.

February –

MBB participation in European fora

Mr Tanti at the European Apprenticeship Forum in Nantes

2nd–3rd February –

3rd–4th February –

Workshop on employability in Brussels

Forum on Corporate Social Responsibility in Brussels

MBB CEO Joe Tanti participated in the ET 2020 country-focused workshop on employability, held in Brussels. Mr Tanti was participating in his capacity as a representative of BUSINESSEUROPE in the European Commission expert group on the Modernisation of Higher Education. The workshop brought together representatives of public authorities and higher education institutions from 13 countries, as well as BUSINESSEUROPE and ETUCE – the European Trade Union Committee for Education. Workshop presentations and discussions focused first on tools to obtain data about future and

current graduate employment outcomes (skills forecasting and graduate tracking), followed by tools to review approaches to developing new programmes and adapting existing programmes to enhance graduate employability. The wealth of experience around the table made it possible to review critically different approaches and to identify common lessons and areas where further evidence about effectiveness is required. Mr Tanti’s visit were funded by the European Commission.

MBB CEO Joe Tanti and Permanent Delegate in Brussels Omar Cutajar attended the MultiStakeholder Forum on Corporate Social Responsibility (CSR). The Forum attracted more than 450 participants from an array of sectors and stakeholders – a clear sign of the importance of responsible business conduct for business, civil society, governments and international organisations. In itself, CSR is a topic which extends across several policy areas. It has a fundamental role in ensuring sustainable economic growth while concurrently mitigating social and environmental impacts of business both in the European Union and around the world. Across the two

days and 12 panel discussions, close to 100 policy ideas and suggestions were put forward by delegates. The Forum represents the final milestone of the European Commission's multi-stakeholder review process before the official drafting and adoption of a new strategy on CSR. A Public Consultation on Corporate Social Responsibility was carried out in 2014, the results of which provided important feedback on the European Commission's 20112014 Communication on CSR. The public consultation also provided thematic input for the Forum and set the stage for the subsequent policy on CSR.

5th–6th February –

European Apprenticeship Forum in NANTES During the same week, Mr Tanti also had the opportunity to participate in the first European Apprenticeship Forum held in Nantes, France, bringing together over 1,150 participants from 47 Vocational Educational Training institutions based in 18 different countries. For this occasion, Mr Tanti was invited by the Chamber of Commerce and Industry of Nantes StNazaire.

BUSINESS AGENDA | SPRING 2015

mbb update 23rd–24th February –

3rd March –

MBB policy executive covers TRAN, JURI and IMCO European Parliament sessions

Launch of ESF 4.245 Innovation Leaders Project

Policy Executive Mark Seychell had the opportunity to cover a number of committee sessions during a visit to the European Parliament, with particular focus on the Transport and Tourism (TRAN), Legal Affairs (JURI) and Internal Market (IMCO) committees. During the TRAN session, MEP Miltiadis Kyrkos presented his draft opinion ‘Towards an integrated approach to cultural heritage for Europe’. The report supports the creation of transnational cultural tourism products which reflect common European shared values and heritage. It calls on the European Commission to continue co-financing and promoting transnational panEuropean thematic tourism projects. On the JURI and IMCO committees’ agenda was the proposed directive on ‘single-member private limited liability companies’. The proposal is meant to

facilitate cross-border activities of companies, by asking EU member states to provide a legal system for a national company law form that would follow a harmonised set of rules in all EU member states. This harmonisation would be known as SUP (Societas Unius Personae). It is worth noting that Maltese MEP Marlene Mizzi was rapporteur on this dossier for the opiniongiving committee IMCO. During his visit, Mr Seychell also conducted an interview with the co-chairperson of the Tourism Intergroup committee of the European Parliament, which is being featured in this publication on page 41. Mr Seychell’s visit was sponsored by the European Parliament Information Office in Malta.

The MBB, in collaboration with the European Projects Association (EPA), launched the ESF 4.245 ‘Innovation Leaders: Improving Knowledge on EU Direct Funds’ project at the Exchange Buildings in Valletta. The project plans to boost SME take-up of three key EU funding streams. The Innovation Leaders training programme will run until June 2015, with the aim of training 150 applicants from within the private sector, resulting in at least 15 project proposals presented for funding under the Horizon 2020, Erasmus+ and Creative Europe streams in 2015 and 2016. In his opening address, MBB President Mario Spiteri commented that “experience has shown that the take-up of direct

EU funds from Maltese businesses is very low. The Innovation Leaders programme is a key measure through which we will build and strengthen the capacity within enterprises to tap into direct EU funding themselves.” Addressing attendees, Parliamentary Secretary for EU funds Ian Borg stated “this project by MBB signifies further investment in sectors that will hopefully receive a boost and in turn generate further economic growth. These programmes come together to encourage further participation from the private sector. Together with other public organisations, including foreign ones, these can take up EU-funded projects through productive partnerships and we look forward to promoting and sustaining that.”

Innovation Leaders consists of three full days of masterclass training by funding experts selected by the EPA. This is then followed by two mentoring webinars, as well as applicants being required to carry out a training session within their companies. The training will also result in the applicants developing projects, the best of which will be submitted for funding. The 15 most feasible projects across the board will be invited to attend a study visit to Brussels. The event was also addressed by MBB CEO Joe Tanti and EPA Secretary General Katarina Sipic, who highlighted expected benefits of the programme for Maltese enterprises. The masterclasses are being facilitated by three expert trainers, Dr Roberta Mancia from Italy, Marko Paunovic from Serbia and Monika Bršcic from Croatia. More information on participation in the training programmes can be obtained from Karla Chetcuti Bonavita on karla@mbb.org.mt or 2125 1719.

12th March –

EU enlargement event hosted by the Institute for European Studies MBB CEO Joe Tanti and Policy Executive Mark Seychell participated in an event entitled ‘The role of the European Union in the Western Balkans’. The event, organised by the Institute of European Studies in collaboration with DG Near, looked into Malta's post-accession period as a case study for poten-

tial new EU members. The event was addressed by Prof. Roderick Pace, Director, Institute for European Studies – University of Malta, Natalija Sandic, Senior Associate Innovation Fund Serbia and Joe Tanti, CEO, Malta Business Bureau. Mr Tanti’s presentation focused on the challenges and opportunities for Maltese

business arising from Malta’s EU membership. Following the keynote presentations, an open discussion with speakers and participants took place.

BUSINESS AGENDA | SPRING 2015

mbb update 17th March –

MBB invited to National Enterprise Support Awards Launch

25th March –

MBB shares best practice at Malta Water Week activity MBB Projects Development Manager Geoffrey Saliba presented the EU LIFE+ Investing in Water project as a case study in water conservation, at a clusters event held for World Water Day this year.

The event was organised by Paragon Europe within the margins of the Water Efficiency in European Urban Areas Project, and aimed to look at innovation in water management solutions, technology and practices. Europe’s

leading organisations, regions, agencies and experts converged on the Maltese islands, aspiring to create an open European platform for EU excellence in efficiency in urban water management.

27th March –

As winner of the '2014 National Enterprise Support Awards', the MBB was invited to this year’s launch ceremony held at the Ministry for the Economy, Investment and Small Business, and hosted by Minister Chris Cardona. CEO Joe Tanti shared the MBB’s experience of winning last year’s award and discussed the many opportunities that emerged as a result of participating in the

European Enterprise Promotion Awards held in Naples in October 2014. On this occasion, the MBB classified as runner-up in the ‘Supporting the development of green markets and resource efficiency’ category with its EU LIFE+ Investing in Water Project. This was only the second time that a Maltese project was shortlisted since the start of this EU initiative nearly ten years ago.

26th–27th March –

MBB participates in EEN Tourism and Cultural Heritage Sector Group in Naples MBB CEO Joe Tanti participated in the Enterprise Europe Network (EEN) Tourism and Culture Heritage Sector Group that was organised as part of this year’s BMT Tourism fair in Naples. The sector group aims to facilitate business co-operation between partners in the EEN network on tourism products and services, particularly through the promotion of innovation and technology transfer. It also looks into safeguarding cultural heritage in Europe. The group coordinates bilateral meetings at tourism and cultural

MBB congratulates new Malta Chamber President elect Following the Annual General Meeting of the Malta Chamber of Commerce, Enterprise and Industry, Anton Borg was elected President of the Malta Chamber for the coming two-year term. Mr Borg is a past President of the Malta Federation of Industry which merged with the Malta Chamber of Commerce and Enterprise in 2009 and a longserving Director of the Malta Business Bureau. Upon his appointment, Mr Borg declared that he would adopt an

The Malta Business Bureau is part of the Enterprise Europe Network.

8th MAY –

MBB bids farewell to EU Affairs Manager Omar Cutajar

President Mario Spiteri, on behalf of the Malta Business Bureau, welcomed Mr Borg’s election as Malta Chamber President. He stated “Anton Borg is a gentleman dedicated to his work and to the Maltese business community. He gave a valuable contribution to the Malta Business Bureau during the many years he served

MBB presentation on Capital Markets Union

The MBB was invited by the European Commission Representation to give a presentation at a business seminar discussing the latest green paper on 'Building a Capital Market Union' (CMU).

The CMU is a priority for President Juncker’s Commission to reinvigorate investment in the European economy to pre-financial crisis levels. It is expected to unlock investment for SMEs, attract an injection of investment into the EU from third countries and make the financial system more stable. To do this, the proposal suggests ways of how to remove barriers that stand between investors’ money and investment opportunities, overcome obstacles that prevent businesses from reaching

EU Affairs Manager Omar Cutajar, who for the past years served as the MBB Permanent Delegate in Brussels will be seeking new

CEO Joe Tanti, on behalf of the Malta Business Bureau, thanked Mr Cutajar for his dedication and commitment throughout the years spent at the organisation. He congratulated Mr Cutajar on the new position and wished him all the best for this new endeavour.

investors, and create an efficient system to channel funding both nationally and across borders in the EU. MBB Senior Executive Daniel Debono kicked off the discussion in the workshops by taking stock of the current access to finance situation in Malta, based on an MBB report published in 2013, and by giving a critical overview of the challenges and opportunities that a CMU will bring about.

10th April –

Consultation session on proposed directive on Single-Member Private Limited Companies IMCO committee, MEP Marlene Mizzi, as well by MEP Therese Comodini Cachia, who is a member of the lead committee, JURI.

pastures at Malta’s EU Permanent Representation. Mr Cutajar joined the MBB in 2004 and provided his technical expertise to the organisation throughout these years.

on the Board and I look forward to collaborating with him in the coming months. I wish him all the best for this new challenging and rewarding role.”

9th April –

heritage fairs and company missions to visit potential partners. It advises companies on funding opportunities and new technologies for tourism and cultural heritage at national and European levels, and assists them in applying for EU grants. During the committee meeting, Maria Cristina Raffone of Eurosportello – Special Agency of Naples Chamber of Commerce – was re-elected as Chairperson of the Sector Group.

inclusive style of leadership and appealed to all Council members to contribute dynamically to the work and activity of the Malta Chamber and its committees.

The MBB and European Parliament Information Office held a stakeholder consultation event on the European Commission’s proposal for a directive on 'single-member private limited liability companies'. The proposal asks EU member states to create a new national company law form, harmonised across the European Union, ensuring that single-member companies established in other

jurisdictions would benefit from the same set of rules across the EU. This new national company law form will be given a new name, Societas Unius Personae (SUP). The proposal is currently being reviewed by the Legal Affairs (JURI) and the Internal Market and Consumers (IMCO) committees in the European Parliament. The event was addressed by the rapporteur for the opinion-giving

Stakeholders participating in the consultation session among others included the Malta Institute of Accountants, the Kunsill Nutarili ta’ Malta, the Malta Financial Services Authority, the Malta Chamber and a number of legal practitioners. The session was moderated by MBB’s EU Affairs Manager Omar Cutajar, while Policy Executive Mark Seychell presented an outline of the Commission’s proposal, which provided the basis of the discussion.

BUSINESS AGENDA | SPRING 2015

INTERVIEW

‘Europe needs more

entrepreneurs’ Following a recent radical reform by the European Commission, Director General of DG Internal Market, Industry, Entrepreneurship and SMEs Daniel Calleja Crespo, discusses with Martina Said the challenges that lie ahead for 2015, the renewed focus on creating a deeper and fairer internal market, and the promising prospects ahead for SMEs. “In order to grow and create jobs, Europe needs more entrepreneurs,” says Daniel Calleja Crespo, Director General of the European Commission’s Directorate-General (DG) for the Internal Market, Industry, Entrepreneurship and SMEs, and Special Envoy for SMEs. “In 2012, we launched the Entrepreneurship Action Plan, which aims to support entrepreneurs and foster entrepreneurial culture in Europe. Education and training will nurture new generations of entrepreneurs and will help young people, women, older people, migrants and the unemployed to get on board.” Given that Europe boasts 23 million SMEs – which amount to 99 per cent of all EU businesses – that create 85 per cent of new jobs, Mr Calleja Crespo says the Commission strongly believes that a policy fit for SMEs will benefit almost everyone. “SMEs have in the past found it difficult to get their views across to policy-makers. This is due to limited resources at their disposal and time taken for such a large group of diverse companies to reach a common position,” he asserts. “In recognition of these difficulties, as part of the 2008 Small Business Act for Europe (SBA), the Commission took action to meet the needs of SMEs to be heard in the development of the EU economy and created the position of SME Envoy for Europe – a senior official who is given responsibility for ensuring that the voices of SMEs are heard at the highest level and that policy development fully embraces the ‘think small first’ principle.” Mr Calleja Crespo says the challenge of the SME Envoys is to promote SMEs' interests throughout the whole Commission, ensuring they are mainstreamed in all areas of policy, as well as facilitating communication between

the Commission, SMEs and their representative organisations. “In order to complement the role at European level, the Commission also invited member states to appoint national SME Envoys. At this stage, the SME Envoys Network is a well-established group whose actions extend beyond the EU boundaries,” he explains. “For example, the network encourages neighbouring countries to adopt our best practices. Also, as the involvement of the small business community is crucial, EUwide SME representative organisations always participate in the meetings of the network.” The role of SMEs in contributing towards and sustaining Europe’s economic recovery needs to be strengthened, however, and this includes assisting SMEs in accessing new markets, both inside and outside the EU. “To this end, the Commission established

The European programme COSME – Competitiveness of Enterprises and Small and Medium-sized Enterprises – which was put into practice in 2014 until 2020 and has a budget of ¤2.3 billion, was created to facilitate the path for the growth and success of SMEs. Mr Calleja Crespo explains that the programme supports SMEs in a number of areas, such as better access to finance, access to markets, supporting entrepreneurship and establishing more favourable conditions for business creation and growth. “With regard to EU policy, we are also working on revising the Small Business Act. The current text covers four pillars: access to finance, access to markets, the reduction of administrative burdens and entrepreneurship,” he asserts. “However, there was agreement among all SME

“SMEs have in the past found it difficult to get their views across to policy-makers. This is due to limited resources at their disposal and time taken for such a large group of diverse companies to reach a common position.” the Enterprise Europe Network (EEN), which helps SMEs expand their businesses in 54 countries, and has set up strategic partnerships with the US and China,” asserts Mr Calleja Crespo. “The Commission has also launched SME policy dialogues with Brazil, Chile, Colombia, Mexico and others. In addition to dialogues and best practice exchanges, the Commission also provides onthe-ground support services in countries outside the EU, such as the Intellectual Property Rights helpdesks in China, the Mercosur region and Southeast Asia. We also established business centres in China, India and Thailand, and a regional centre for the Mercosur countries.”

Envoys to add training and skills as a fifth pillar. In order to gather fresh ideas to promote SMEs' growth, the Commission conducted a public consultation in 2014. We are busy analysing the results which will help us formulate proposals in 2015.” He adds that furthermore, since a large number of SMEs operate in the service sector, the aim of the SME Envoys is to push forward with the implementation of the Services Directive and tackle other barriers in the internal market for services. “For instance, online retailing opens vast new possibilities for niche suppliers, but getting the product from the SME to the customer depends on parcel delivery services, and we have to ask whether

BUSINESS AGENDA | SPRING 2015

INTERVIEW “We need to reduce red tape, to promote entrepreneurship and encourage job creation by stimulating investment in new technologies. We also need to remove barriers to cross-border service provision, particularly where these are based on unjustified restrictions arising from nationality or residence.” our current regulatory structure is fit for today's market.” On his role as Director General, Mr Calleja Crespo says 2015 is a year of challenges – the new Commission, under the leadership of President Juncker, has pledged to renew the EU by working on 10 policy areas. Under the new structure, the DG is responsible for the Internal Market, Industry, Entrepreneurship and SMEs, and Mr Calleja Crespo says “we are well positioned to make a major contribution to President Juncker's fourth policy area: a Deeper and Fairer Internal Market with a Strengthened Industrial Base.”

“Our mission will focus on a number of areas: completing the internal market for goods and services, boosting industry to bring its weight in the EU’s GDP back up to 20 per cent by 2020, encouraging entrepreneurship and improving the business environment – particularly for SMEs, ensuring workers have the skills industry needs.” To fulfil this remit, continuous efforts will be required to reinforce the EU’s industrial base and to maintain global leadership in strategic sectors with high-value jobs, such as the automotive, aeronautics, engineering, space, chemicals and pharmaceutical industries. He adds “we need to reduce red tape, to promote entrepreneurship and encourage job creation by stimulating investment in new technologies. We also need to remove barriers to cross-border service provision, particularly where these are based on unjustified restrictions arising from nationality or residence.” Asked what will change for policy making for the internal market, Mr Calleja Crespo says now that the new DG is responsible for the entirety of the internal market, both for goods and services, it has a key role to play in making it deeper and fairer, with a focus on enabling the internal market

to once again become a “jobs and growth engine”. “Grouping departments dealing with goods and services in the internal market into one DG is a logical step. Across Europe, manufacturers are progressively extending their activities to include services while, at the same time, service companies are starting to offer manufactured products,” he says. “Just think about the way customers are offered finance and insur-

ance when they buy a car, or how a company that once shipped books to our doors is now in the tablet business. Businesses need professional services, particularly SMEs which have limited in-house expertise, but what barriers are there to the provision of services across borders? With this in mind, our newly merged DG will be able to exploit policy synergies, which reflect the changing nature of our current economy.”

He concludes that it is important to not forget the potential of public procurement as a strategic tool for sustainable public spending, innovation or industrial competitiveness. “This sector covers almost 20 per cent of the EU GDP. An ambitious reform in this field was agreed upon last year, and we now need to use all the tools at our disposal to make it deliver on the ground.”

BUSINESS AGENDA | SPRING 2015

DESIGN

The ultimate office

Photo courtesy of Evolve

A practical and dynamic office environment is a cornerstone for most businesses – how do you ensure that your office space is working hard for you? Jo Caruana chats with the experts to find out. Gone are the days when your office could be a dark room at the back of a dingy apartment. These days, if you’re going to have an office that welcomes clients and works hard for your employees, then it’s going to need to be an effective space that is well thought-out and multifunctional. When it comes to planning an office, one key trend to have emerged in recent years is the need for team members to exchange ideas. This has led to the creation of more openplan office environments, thus enabling conversation, transparency and collaboration. “We’ve seen a definite move towards open-plan working with desk sharing and unlimited com-

“Insulation is the secret behind any successful open-plan space.” – Rudolph Spiteri Sacco munication channels,” explains Luisa Diacono, a Director and the Designer for Nine Yards Ltd “Employers are giving a lot of importance to staff interaction and team building. This has been popular overseas for some time, and it has now picked up in Malta too. “Meanwhile, another key trend is the ‘clean, sleek and tailored look’, which is as practical as it is stylish. Desks have become more compact yet are still very

functional, while a mix of materials including glass, metals and, of course, wood, are also proving popular.” These design developments have encouraged numerous companies to upgrade their office space. “Whether you are working on an office redesign or starting from scratch, there is a lot to bear in mind,” says Rudolph Spiteri Sacco, Owner and Director of Evolve, which is a member of the RS Group. “An open-plan office has numerous benefits, but there are potential challenges to keep in mind too – such as whether your employees will be able to work in a noisier environment. There are ways to tackle that, though, such as through the use of insulated internal ceilings

and walls, and by using materials that are both practical and aesthetically pleasing, such as acoustic wall panels, acoustic paintings and hanging ceilings. I really do believe that insulation is the secret behind any successful open-plan space.” Asked for advice on office upgrades, Mr Spiteri Sacco stresses that you will need a good designer to set you on the right track. “If your employees need to keep working throughout the renovation, then you will need to ensure minimal disruption; a good design team will manage this for you. “And you needn’t worry that everything will have to come to a grinding halt. You can make a

big difference to your space with some relatively small changes, including the addition of raised flooring, parquet, paintings, feature walls, gypsum partitioning and false ceilings.” Ms Diacono is also keen to explain the importance of colour. “Colour gives life, helps to set the mood and creates atmosphere,” she says. “When using colour there is a very fine line between getting it right and getting it wrong; for instance, colour used in branding is very different to colour used for interior design. Don’t feel you need to stick to your corporate colours when designing your office, as, while some colours look great on a logo, that doesn’t mean they will look equally good on a wall.

BUSINESS AGENDA | SPRING 2015

DESIGN “Don’t feel you need to stick to your corporate colours when designing your office, as, while some colours look great on a logo, that doesn’t mean they will look equally good on a wall.” – Luisa Diacono “Elegance is always crucial, and combining the right tones, shades and colours is vital when it comes to getting the look right. I would recommend getting plenty of guidance on this.” Another key area to seek guidance on is definitely the installation and choice of the right technology for your office. “All offices, whether small, medium or large, now require 24/7 connectivity and data availability,” says Ing. Michael Bugeja, Head of the Telecommunications and ICT Division at Tektraco Ltd. “It is important to bear in mind various office needs, including security, manageability, mobility and remote access, scalability and reliability. The incorporation of these features will ultimately enable employers to create a more productive work environment whilst minimising costs.”

“All offices, whether small, medium or large, now require 24/7 connectivity and data availability.” – Ing. Michael Bugeja

Ing. Bugeja explains that, in recent years, technology has moved away from traditional analogue systems towards newer digital systems. These systems now effectively allow all forms of communication traffic to converge over a common infrastructure using Internet Protocol (IP) technology. “Because of this shift, IP converged networks are now being implemented in modern buildings – and it is important to think about this when you are building or restructuring your office. What this means is that various systems – including voice, wired and wireless data networks, IPTV, CCTV, access control and other systems – now communicate over a common network infrastructure. In addition to the individual benefits every digital systems offers, there are a number of other key benefits that an IP converged system can offer and we can certainly help to guide clients on this.” Ing. Bugeja adds “yes it can be a lot to think about, especially when you are giving your office a complete overhaul, but, from

experience, I can tell you that companies that do work in this way have increased their productivity whilst minimising their costs. All in all, we have seen that this has resulted in improved customer satisfaction, and has even given them an edge over the competition.”

With all this in mind, Mr Spiteri Sacco goes on to stress that he believes there is one secret to ensuring you have an effective and dynamic office space: the use of the right experts and the best quality materials. “If you entrust your project to the right people, and they in turn use the best products, then you won’t

need to worry about upgrading your workplace again in just a few years’ time. Creating the right office for your business to grow is an important investment, and one that you will be very glad you made,” he adds.

BUSINESS AGENDA | SPRING 2015

business update

Attrans – delivering more than just goods

Since 1976 and under the guidance of its founder Philip Attard, Attrans has established itself as the leading transport company on the island. Now, in its second generation and in the hands of Philip Attard Jnr, Attrans prides itself on being in a position to offer a wide range of services to a varied clientele, providing logistical solutions to and from any European destination to Malta and North Africa. The company is based in Zebbug, Malta, within premises that measure over 25,000 square metres and that house offices, workshops and warehousing facilities. In addition, Attrans has subsidiaries in Italy (Attrans Italia), and two in the Netherlands (Attrans BV and Attrans North Africa), also fully equipped with administration offices, workshops and warehousing facilities.

The fleet of Attrans Ltd is currently made up of Volvo tractor units and over 300 trailers, suited for the different types of services the company offers. Our trucks and trailers are strategically placed at our own depots throughout Europe, Morocco and Tunisia in order to serve customers efficiently and effectively seven days a week, 365 days a year. Attrans believes that the continuous investment in our fleet has placed us one step ahead of our competitors, providing Attrans with the best possible transport solutions available. We are convinced that we have the experience and the ability, and that is why Attrans is delivering more than just goods. Attrans International Transport. T: 2258 5500; E: info@attrans.com; www.attrans.com

His heart stopped! Will you save him?

Your partner for your next event Sudden cardiac arrest (SCA) is the most common cause of death from heart disease, accounting for more than 63 per cent of all cardiac deaths. In SCA, the heart suddenly stops beating normally. Without a blood supply, oxygen-starved organs are irreversibly damaged and will quickly fail... within a few minutes. The only effective treatment for SCA is defibrillation. External defibrillation provides a brief, effective therapeutic electric shock through the person’s chest to the heart, restoring the heart’s normal rhythm. While people with heart problems are at high risk of death from SCA, it can strike anyone, anywhere, at any time without warning and in some cases is the victim’s only symptom. Even young people, people who appear to be healthy, extremely fit athletes and people with no history of heart problems can be victims of this silent killer. The definitive survival treatment for a SCA victim is a defibrillation shock. CardioPulmonary Resuscitation (CPR) or ‘chest compressions’ and ‘mouth-to-mouth’ breaths, only temporarily circulate blood to vital organs and on their own do not

restore a patient's heart into a healthy rhythm – a shock is needed... and fast! The average national response time for the arrival of emergency personnel equipped with defibrillators is usually greater than 10 to 15 minutes – this is just too late. That is why immediate access to defibrillators on-site is extremely important. Each minute of delay in delivering a defibrillation shock to a cardiac arrest victim reduces the chances of survival by 10 per cent – meaning that, if a casualty is not shocked within five minutes of collapse, he/she will have less than 50 per cent chance of survival. When a SCA strikes, the first few minutes are critical to survival. In the chaos and confusion surrounding the event, it can be challenging for the average rescuer, with only minimal training in CPR and AED use, to remember and follow the correct procedures. It’s during these critical minutes that the Powerheart AED G3 Plus becomes priceless. For further details contact Technoline Ltd on T: 2134 4345.

On Site Malta is the ideal partner for the organisation of your event, be it an association meeting, conference, unique event, innovative incentive or exclusive programme. Operational since the year 2000 and accredited with the Quality Assured Seal by the National Tourism Authority, with On Site Malta you bring on board a wealth of experience. Delivering an average of 50 events with approximately 6,000 delegates yearly and having organised Malta’s milestone event of 7,000 persons and Malta’s largest conference of 5,000 delegates, its knowledge and expertise has been tested on all levels: from the exclusive meeting for 10 VIPs, to the rewarding incentive for 100 achievers to conventions of 1,000 delegates and more. On Site Malta’s backbone is the dynamic team of 15 event experts, who communicate fluently in English, French, Italian, German, Dutch, Russian and Spanish, and put all their energy, creativity, logistic and technical expertise into your event.

With a thorough knowledge of the meeting industry dynamics and expert venue logistics, your professional organiser will anticipate your requirements and offer bespoke solutions towards the professional execution of your event up to the most intricate detail. On Site Malta specialises in the smoothrunning of your conference, the creation of executive social programmes and innovative team events to achieve your event goals. The company also specialises in venue sourcing the perfect backdrop and providing the platform for your gala dinner or awards ceremony that will complement the theme of your event. By listening very carefully to clients' requirements, adapting the Maltese islands to your event and excavating possibilities that you might not have deemed possible, On Site Malta will deliver the desired result whilst surpassing targets and exceeding expectations. www.onsitemalta.com

BUSINESS AGENDA | SPRING 2015

INTERVIEW

Putting tourism at the top of the EU agenda Tourism is one of the defining industries which can make or break the European economy. Yet, despite its importance, it remains an area of limited competence within the Union. MARK SEYCHELL interviews Romanian S&D MEP, who is coChair of the European Parliament intergroup on tourism, Ana-Claudia Ţapardel, on her efforts to put tourism at the top of the EU agenda. Tourism in Europe has been on the rise in recent years. In the last quarter of 2014 alone, the tourism sector grew by four per cent whereby a total of 588 million visits were reached. This translates to an increase of 22 million visits compared to 2013. This positive trend has been reflected in policy making at a European level, with the European Parliament giving the go-ahead for the introduction of an intergroup on tourism. Romanian S&D MEP Claudia Țapardel, also a member of the Transport and Tourism (TRAN) committee in the European Parliament, was instrumental in lobbying for the inception of the tourism intergroup. Despite the creation of the new intergroup, it is important to note that tourism is still an area of limited competence within the Union. EU competence is in fact limited to complementary activi-

ties to member states’ responsibility in this policy area – a limited competence recently introduced by the Lisbon Treaty. Yet, Ms Țapardel does not find its establishment contradictory to current competences of the Union. Rather, it represents a shift in mentality whereby tourism is seen as an important factor in economic growth and job creation, especially since tourism

represents close to 10 per cent of the EU’s GDP. As the intergroup is not linked to any particular parliamentary committee, it allows for a framework for discussion between MEPs from various committees on horizontal issues affecting tourism. Such issues include regional development (tackled by the REGI committee), the cul-

tural aspect of tourism (CULT committee), gastronomy (AGRI committee), access to remote regions and transport connectivity (TRAN committee), and Visa policy (LIBE/JURI committees). Ms Țapardel is actively trying to assign active members of the intergroup with the responsibility of policy areas based on their expertise, experience and interest after agreeing on a work pro-

gramme based upon common objectives. Ms Țapardel stresses that the fact that the tourism intergroup has been established shows that the European Parliament is ready to give the industry increased priority. “This was one of the main arguments that led to the approval of the new intergroup by the leaders of all politi-

BUSINESS AGENDA | SPRING 2015

INTERVIEW cal groups,” states Ms Țapardel, referring specifically to the development of the industry as well as the protection and promotion of cultural heritage. What is particularly significant is that Ms Țapardel successfully lobbied for the support of over 200 MEPs regarding the setting up of the tourism intergroup – certainly no mean feat in a European Parliament representing a multinational electorate from 28 member states and diverse political backgrounds.

try trends. Ms Țapardel believes the way forward for the industry is the promotion of less-known destinations. “There are a lot of undiscovered places in the EU, places considered to be off the beaten track, and their promotion would help not only member states but all of the EU because it would build upon the common tourism brand that we share,” she explains.

“We want to maintain Europe’s place as the number one tourism destination in the world, while making European tourism more accessible and sustainable. Above all else, we want to ensure that the tourism industry will continue to create jobs and foster European economic growth,” she says. “Given the support we received for the creation of the intergroup from the European Commission, as well as the private sector, I am certain that European tourism will be a top priority topic for this legislature.”

Her reasoning behind this is that the market for Europe’s most obvious destinations, such as capital cities, quickly becomes saturated. Thus, market diversification to other places that are off the beaten track will ensure the sustainability and viability of the EU as a destination for years to come. However, she explains that such a strategy requires significant investment with regards to connectivity to such places. Such promotion and investment will stave off competition from other continents that are marketing themselves as a destination and safeguard Europe’s competitive advantage in the industry.

As co-chair of the intergroup, Ms Țapardel has committed to pressuring the European Commission for a revision of the Communication on tourism, already five years old since its publication, in order to be in line with current market demands and new indus-

It is clear that the European Parliament is dedicated to refocusing its priorities, with tourism making its way to a coveted place high up on the agenda. The European Parliament’s increased attention devoted to the sector also reflects upon an own initia-

tive resolution led by S&D MEP Isabella de Monte, announced in plenary in January 2015. The resolution, 'New challenges and concepts for the promotion of tourism in Europe', is expected to be discussed in the TRAN committee in April 2015. Ms Țapardel maintains that while the report is not exhaustive, it is extremely important as it represents a start at establishing some pan-European objectives on tourism. It is also a sign that the European Parliament is taking the industry very seriously, and is prioritising it in this legislature. “Ms de Monte is a member of our intergroup and my colleague in TRAN and the S&D delegation. We share the same objectives regarding the promotion of tourism in the EU and we will be working together to realise these objectives in the framework of our intergroup and the TRAN committee. It is very useful to have people from various fields of expertise in the same organism that work for the benefit of European tourism.” Ms Țapardel maintains that such efforts from the European Parliament can also be backed by a parallel push from the European Commission. She believes that one of the most important initiatives that the European Commission can do at the moment is announce a European Year

“There are a lot of undiscovered places in the EU, places considered to be off the beaten track, and their promotion would help not only member states but all of the EU because it would build upon the common tourism brand that we share.” on Tourism. This will provide a framework of dialogue concentrated on the tourism industry, focusing on challenges and opportunities emanating from the sector, while ensuring the participation of both stakeholders and policymakers alike. “Another initiative I would like the new Commission to undertake is the revision of the 2010 Communication on tourism,” stresses Ms Țapardel. “We need to take stock of all the assets we have and then act upon a clear strategy concerning tourism, especially in areas that have great potential but low opportunities for investments.” Ms Țapardel also believes that the so-called ‘Investment plan for Europe’ of the new President of the European Commission, Jean Claude Juncker, should dedicate tangible resources towards the tourism industry. She pointed out that the plan already touches upon tourism related areas – such as promoting SMEs and infrastructural projects, particularly since SMEs are the quickest

route to multiplying returns on investment. However, MEP Țapardel believes that Mr Juncker's plan should also target areas more directly affecting the EU tourism sector like the promotion, development and preservation of cultural and heritage programmes, and the creation of new ports, among others. Ms Țapardel concludes that her vision for the intergroup is to see it become a platform through which the European institutions, European civil society and the private sector work together with the common goal of developing the industry. “It is an honour to be a co-chairperson of this new intergroup and I would like to take this opportunity to share my appreciation for each and every member of our team”.

BUSINESS AGENDA | SPRING 2015