Valletta’s Suq tal-Belt continued to suffer substantial losses during 2023, despite experiencing notable growth in revenue and footfall.
This was stated in the Directors’ Report in the Annual Report for 2023 of Mizzi Organisation, the company that operates the Valletta market. Aside from the retail operation, the group also has a presence in the automotive, mechanical and engineering contracting, real estate, as well as the hospitality and beverage sectors.
While Mizzi Organisation does not provide the separate financial statements for the Suq tal-Belt operation, it does highlight a number of key figures in its retail sector, which also includes the performance of its Arkadia Commercial Centre in Gozo, Arkadia food store, and fashion business Mizzi Brothers Limited.
During the year, Mizzi Organisation Ltd, which covers every part of Mizzi Organisation aside from the hospitality and beverage businesses, recorded €155.7 million in total revenue, €21.7 million of which came from the sale of food store goods, clothing, and other goods from the shopping complex and rented premises. This was notably higher than the €18.2 million recorded in 2022.
However, it also incurred more costs in 2023, with total cost of sales, selling, and other direct expenses, as well as administrative expenses amounting to €154.9 million. During the year, €111.9 million of the aforementioned figure was directed towards the cost of goods sold.
Further insight into this was given in the Directors’ Report, which stated that Suq tal-Belt enjoyed “record footfall” in 2023, primarily a result of the high tourist arrivals prompting higher revenue.
2023 was a record-breaking year for Malta in terms of tourism numbers, with figures from the National Statistics Office revealing that there were 2,975,670 inbound tourists during the year. This broke an earlier record set in 2019, when 2,771,888 visitors came to the Maltese Islands.
However, while there was a growth in income driven by tourist numbers during the year, losses from Suq tal-Belt are “still substantial,” with the operation also feeling the negative impact of inflation, including the increase in the cost of human resources. The Directors added that this negative performance required a “further impairment of €2 million on the initial investment.”
“Management continues to explore options for the operation of the first floor of this building to generate new streams of revenues and limit losses as much as possible,” the report continued.
Despite the market’s struggles, the Arkadia Food Store at Suq tal-Belt was a “high performing store,” with it experiencing positive trends after a number of operational enhancements that took place.
Looking ahead, the Directors stated that the primary challenge for the market in 2024 is to translate the growth in tourist arrivals into better per capita expenditure, while also maximising revenue from all areas within the premises. “Management will also continue to seek the most cost-effective ways of operating the business despite the challenges it faces,” the Board of Directors affirmed.
Mizzi Organisation, through Arkadia Co. Ltd, has a 65-year emphyteutical grant for the operation of Suq tal-Belt, having entered into the agreement back in 2016. Following the agreement, heavy restoration took place, costing approximately €14 million.
While the restoration was applauded, particularly for retaining a number of original elements, it has also come under heavy criticism due to the commercialisation of a property that is filled with so much historical value in Malta’s capital city.
During 2023, Arkadia had a request for the installation of newly designed canopies with retractable roofs outside Suq tal-Belt rejected by the Planning Authority (PA). The PA Board had stated that the structures would impact the view of the building’s façade. Arkadia has since appealed the decision.
