Malta - Services



Services represent the fastest growing sector of the Maltese economy, employing 71 percent of Maltese workers and producing 71.7 percent of GDP in 1999. Wholesale and retail services account for about 11 percent of the nation's GDP, against financial services at 8 percent.

Tourism is a major component of the services sector. Each year Malta receives about 1.2 million tourists, and the tourist industry is the country's main source of foreign currency. In 1998, to attract new visitors, the government began a US$40 million project to improve the waterfront of Malta, the largest island, with new hotels and improvements to existing buildings. There is also a US$25 million project to construct a new cruise line terminal. The country's mild climate and relatively low prices are the main attractions for tourists, who also enjoy the historical sites where many castles of the Knights of Malta remain intact.

Maltacom, the nation's telecommunications company, has established GoMobile to provide cellular phone service. In 1999 there were about 15,600 mobile phones in use in Malta. Several international companies have established Internet and e-commerce businesses in Malta.

Many international firms have established franchises in Malta. North American fast-food chains such as Mc-Donald's, Burger King, T.G.I. Fridays, and Pizza Hut have done well. In 2000 work began on a Hard Rock Café, which will be part of a local hotel. The government also chose a company from the United States to provide cable services for the nation.

The retail sector operates under some important restrictions. Shops are only open from 9:00 a.m. to 7:00 p.m., and there is a 3-4 hour break or "siesta" in the afternoon, as is customary in many Southern European countries. In addition, almost all shops are closed on Sunday.

Financial services are a big growth area in the Maltese economy. Since 1995, financial services have grown by 40 percent. Malta's banking system has assets of US$6.2 billion, and the nation has a small stock market, which lists mainly local companies. In 1999 total trades equaled 107.3 million Maltese liri.

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