The impact of the Gozo ferry price increase on Gozo's economy

Abstract

Gozo is a small island region with its own characteristics distinct from those of Malta. Gozo has the problem of double insularity as the island is on the peripherality of another island. Another problem is its small size of the domestic markets which resulting in low economies of scale. This means that Gozo depends on imports. These features of the island and economy of Gozo reflect the importance of the link between Gozo and the sister island of Malta. Transport is especially vital for the island of Gozo because this island depends heavily on tourism, imports and exports and the unavailability of land transport restricts movement of goods and people. This vital link is provided by the Gozo Channel Company, which is owned by the state. This dissertation investigates the adverse impact of the recent price increase of the Gozo Ferry tariff on the economy of Gozo. This study focuses solely on the Maltese tourism, Gozitan employees and Gozitan students as well as the Gozitan businessmen who use the service of the Gozo Channel frequently. This impact is investigated through primary sources. The study also debates about the opinions of the users of the Gozo Ferry about the liberalisation and privatisation of the company.