The effect that the pandemic of COVID-19 left on businesses operating on the island of Gozo with a special focus on tourism and manufacturing

Abstract

The research aim is to analyse the pandemic’s impact on business enterprises in the tourism and manufacturing industries in Gozo, and how such industries adapted to this pandemic. The pandemic negatively affected both industries, especially the tourism industry. This study enriches the knowledge present in the GBC and GTA surveys and provides useful recommendations how organisations operating in these industries can adapt. This is an interpretivist research and the mixed method was used. 16 semi-structured interviews with top managers were performed. Diverse case studies of companies operating in the tourism and manufacturing industries in Gozo were chosen. Thematic analysis was adopted. The findings indicate that the tourism industry generated lower sales, although it benefited from domestic tourism. There were manufacturers who continued to operate and had an increase in sales, and there were those whose orders decreased since they depend on the tourism industry. The supply chain was disrupted due to higher raw materials cost and delays in receiving the goods. Government incentives were beneficial to the tourism industry. Not all manufacturers benefited from such schemes, and those who benefited mentioned that the incentives were only to subsidise fixed expenses. Participants remarked that their future depends on the pandemic. Other said that until now they have not been affected by the pandemic, but they could be hit. Others said that they have a growth strategy. Additional interviews were done with the GBC and GTA. Some of the recommendations they mentioned were that tourism in Gozo should keep developing by targeting new markets like the digital nomads. The way forward for Gozo should be to diversity from the over-dependence on tourism into new industries like digital innovation. Air connectivity should be introduced to strengthen connectivity between Malta and Gozo. The government should give financial packages to support innovative ideas.