Malta recorded the biggest slump in retail volume within the EU in February while most other member states made a recovery, according to Eurostat.
While retail trade within the EU rose nearly 3% between January and February, Malta took the hardest hit, posting a drop of 1.5%.
The majority of EU countries, on the other hand, saw the sector pick up pace, with Austria, Slovenia and Italy boasting the highest rise at 28.2%, 16.4% and 8.4%, respectively.
Compared to February 2020, however, the EU saw an overall 2.2% drop in February, indicating that retail outlets are still recuperating from the pandemic impact.
In the February-to-February comparison, Malta had the third-highest drop among member states, at 8.9%.
This February was not affected by Malta’s semi-lockdown, which saw non-essential shops and services closed for about four weeks. They are due to reopen on April 26.
Usually replaced by money coming in from tourists but not the case right now
The vice president of the Malta Chamber of SMEs, Philip Fenech, said it was not surprising that Malta had been hit harder than other EU countries.
“70% of retail here depends on tourism not only as a direct demand but also as a derived demand,” he said.
Tourists did not just generate money for hotels, restaurants, bars and general retail, but for the suppliers and workers of these establishments, he pointed out.
“When we are domestically trading with one another, a lot of money is going out of the country in terms of importation of goods, like meat, canned stuff, wines and spirits and so on,” he added.
“That is usually replaced by money coming in from tourists but this is not the case right now.”
Other EU countries, which were more dependent on other sectors, would have been impacted differently.
Just last week, the tourism ministry announced a €3.5 million handout scheme as part of a larger package aimed at reviving the exhausted tourism industry, which will see tourists receive up to €200 to spend on the island.
On Sunday, Prime Minister Robert Abela said the authorities were working on a new financial aid package for those hardest hit by the COVID-19 pandemic.