A total of 1,378 people who teach English in language schools risk losing their jobs if the sector is not given assistance, according to an audit of the industry carried out by Deloitte.

Even in the best-case scenario, the analysis still found that with government intervention, 643 jobs would be terminated.

In August, language schools had already reported that they were operating at just 10 per cent of their usual occupancy.

The Deloitte audit found that between March 5 and 16, cancellations in language schools shot up from 4,000 to 20,000, coinciding with initial COVID-19 cases being recorded in Malta.

In July, schools saw a cumulative occupancy of 1,740 student weeks, just 9.4 per cent of the 18,456 student weeks the industry had seen in the same month in 2019.

Looking at the financial impact of the novel coronavirus on the English Language Teaching sector, the study found that business has plummeted by 80 per cent.

Deloitte estimated that in 2019, expenditure by ELT students stood at approximately €145 million and accounted for 8.6 per cent of total tourist guest nights, with three per cent of all tourists in the country being ELT students.

Net loss in economic activity from the industry was estimated to reach €88 million, with government revenue potentially decreasing by 66 per cent on VAT, income tax and NI generated from the industry.

Survey recommends progressive support to assist operators incurring more than a 40 per cent loss in arrivals

A ‘best case scenario’ analysis which only accounted for a 30 per cent drop in student arrivals would mean that government-generated revenue was still projected to drop to €15.2 million.

The study was commissioned by the Federation of English Language Teaching Organisations Malta (FELTOM) and was presented to Tourism Minister Julia Farrugia Portelli during a pre-Budget consultation meeting.

“The ELT sector is crucial to the tourism sector and to the country’s coffers,” FELTOM CEO James Perry said.

“Sustained government aid is therefore of utmost importance for the sector.

“The industry will only start to recover once there are reduced health concerns and a substantial decrease in travel apprehension. This could still be a long way away.”

Recommendations: wage supplement, subsidised tuition or flights

The survey is recommending a wage supplement to be sustained on a decreasing scale until the industry returns to at least 70 per cent of the business it was generating before the start of the COVID-19 pandemic earlier this year.

It also recommends progressive support to assist operators incurring more than a 40 per cent loss in arrivals and a re-investment of €13.5 million target government revenue from the sector to stimulate accelerated recovery and over €100 million in economic activity.

This could come through direct injection or incentive schemes for students, such as subsidised tuition or flights.

The study found that, as opposed to other tourism markets, the ELT industry attracted people who would not typically travel to the island, with 56 per cent of students arriving from non-EU/EEA countries in 2019.

While the highest number of students came from Italy (12 per cent or 28,367 student weeks), it is followed by Colombia (9.1 per cent or 21,688 student weeks) and Brazil (21,230 student weeks or 9 per cent).

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