As the coronavirus rides roughshod over the economy, no sector has been left unscathed. The Times of Malta talks to the executive chairman of the National Book Council, Mark Camilleri, to take the temperature of the local book industry and consider its prognosis.

How would you have described the general health of the Maltese book industry before COVID-19?

First of all, one has to keep in mind that 15 years ago, the book industry in Europe was in a much better position than it is today, and it’s not about e-books, it’s about profit margins: inflationary pressures in the industry with the simultaneous pres­sure to keep book prices low.

Amazon has distributed the market with low pricing pressures and cutting profit margins, while high property prices have reduced profit margins in bookshops. These structural changes have had deep, negative effects in all of Europe’s book industry, including our own.

However, since 2013, the National Book Council and the Ministry of Education have stepped in to aid and invest in the book industry while incentivising it to grow. Today, I can confidently say that our work and investment in the industry has paid off, as we have successfully turned back a secular downward trend and succeed­ed in incentivising growth in the local industry.

But we still have many chal­lenges. Then the pandemic came and threw us some years back.

What is the Book Council’s role in relation to the industry?

We provide institutional ser­vices that are not sustainable in the small market and current conditions, such as book festivals, book prizes, ISBN, collective rights payments and man­agement, such as public lending rights, and soon the education rights, rights exports and others. We represent industry stakeholders, namely authors and publishers, in the process of building public policy and legislation on the industry.  

What have been the effects of the virus so far?

The pandemic has shut down major parts of the global eco­nomy. Tourism has been shut down and retail shops closed, leading to a serious hit in bricks-and-mortar sales. Printing of new books has been reduced by 75 per cent and print exports have stumbled heavily as well. Online sales are increasing but are not yet enough to offset the bricks-and-mortar sales.

The cancellation of the Campus Book Festival was another hit, and we also expect a substantial reduction of sales at the upcoming Malta Book Festival, which is going to be held under completely different circumstances. We have critical problems, especially because the Malta Book Festival is a major source of revenue for the local industry and we have to ensure we preserve this revenue stream.

Looking ahead, how will this change the industry?

It is going to decimate some small publishers who don’t have cash-flow and didn’t have the ammo to sustain a crisis. Capital investment is going to zero and fewer books are going to be published. I am forecasting the worst, so our work has to be as effective as possible.

May I also add that some damage could have been prevented if the government-backed loans being issued by private banks would have had a much lower interest-rate than 2.5 per cent. Some of our industry players are using these loans simply to keep afloat given that their cash-flow has been disrupted, and it’s very disappointing and even tragic to see banks getting such a free-ride from small businesses in such desperate times, especially from an industry like ours. 

How has the Book Council’s role evolved during the COVID-19 situation?

First of all we have ensured the safety of our employees and we started holding our meetings online. As soon as the pandemic in Europe started spreading widely in early March, we  predicted the incoming lockdowns and amplified our online campaigns.

We have seen much higher online activity related to books and reading during the lock-down, but in terms of sales the local industry is still struggling

We are also providing a lifeline to publishers with emergency book-buying purchases, and these books will eventually go to public libraries. We are trying to fast-track the restoration works of a property we manage in Valletta since that is going to provide a new source of revenue, and we are also finalising the education licences contracts.

What is the Book Council’s strategy to carry out this role?

We take on the demands and interests of our stakeholders, mainly publishers and authors, and carry them over into public and government policy. We do this through constant dialogue and consultation with stake-holders and we also act as mediator between their collective interests when it comes to policy. We don’t intervene in individual commercial relationships between authors and publishers as that’s up to the parties concerned. We promote standards as well. 

Are there any lessons to be learned which could help the Maltese book industry?

The same lesson as in any other industry – it is very important to always hold cash reserves at your disposal. 

Local publishing houses are facing challenges, such as bookstore closures, interruptions to production and promotional activities and cancellation of new titles. What advice would you offer them?

Go online, but everyone knows this by now. 

Eurobarometer surveys show that Malta tops the list of European countries with the highest percentage of the population (54 per cent) not having read a book in the last 12 months. To what do you attribute this?

Yes, but we are among the top of the second-half of the group, placing us right at the average in terms of national reading rates in EU countries.

One has to consider the historical context as well. As a society it is only very recently that we have educated ourselves. Maltese litera­ture only began forming in its mature form around a century ago. I salute Evarist Bartolo for doing a great job in the education field, and there were others before him like Agatha Barbara, who made massive reforms in the Maltese education system.

Today, the government and political parties are contributing to the dumbification of society with their propaganda, television and the national broadcaster. Maltese television is like poison that eats away your brain, just like hard drugs, and maybe even worse.

How do you think COVID-19 has affected people’s reading habits?

We have seen much higher online activity related to books and reading during the lockdown, but in terms of sales the local industry is still struggling. We still have to analyse in detail the change in reading habits but, as of now, we are still struggling with critical work in helping the industry.

When it comes to book sales in Malta, who are the main customers and what part do exports contribute?

Our demographic and the thematic categories are very similar to those in the UK and other European countries. Children’s books top the list, making parents top customers, along with the government, which buys children’s books for schools. This is followed by novels and history books or books of cultural nature. Tourists make up a substantial part of our client base as well.

You have decided to go ahead with the Malta Book Festival 2020 in November. Was this a difficult decision and how do you foresee this year’s festival compared to previous ones?

It is going to be a challenge because we are trying to save what we can. The Malta Book Festival is a major source of revenue for the industry. Sales are going to go down and we are still working on the model of the event itself. We will be ready to go full-steam ahead if a vaccine is announced and restrictions lifted, but we are still preparing for contingencies.

Is there anything else in the pipeline you would like to tell us about?

Yes, we are finalising the legis­lative reforms approved last year at the first National Congress of authors. These reforms will be a great step forward to further standardise and professionalise our industry. Simultaneously, the government will also be announcing in the upcoming budget tax incentives for publishers as an incentive to pay authors’ royalties. We are also working very hard to finish restoration works at our baroque palace in Valletta.