3%
56%
22%
19%
Direct effect (breweries)
Indirect effect (suppliers)
Hospitality industry
Retail
5 | Induced effects of the brewing sector
Hospitality sector
The economic impact of the brewery on the hospitality
sector is assessed as follows :
About 60% of all beer consumed in Malta is sold by the
hospitality sector (on-trade), which means almost 117.6
thousand hectolitres is sold on-trade.
The average consumer price of beer in Maltese pubs
and restaurants is estimated at 4.15 euro a litre
(including VAT)
16
, so that total consumer spending
on beer in the hospitality sector is 48.9 million euro
(including VAT).
Net consumer spending on beer is thus estimated
at 40.1 billion euro (using an 18% VAT tariff).
With an average hospitality turnover of 30,845 euro
(excluding VAT)
17
per person, this results in 1,345
hospitality sector jobs attributable to beer sales.
Retail
The importance of the brewing sector for retail
can be similarly assessed :
Around 40% of total beer consumption (78.4 thousand
hectolitres) in Malta is beer sold by supermarkets and
other retail outlets.
With an average consumer price of 1.31 euro per litre
(including VAT)
18
, total retail consumer spending on
beer is estimated at 10.27 million euro. Total consumer
spending excluding VAT is thus 8.4 million euro.
With turnover per employee estimated at 113,400 euro
(excluding VAT)
19
, this means 77 people owe their jobs
to retail beer sales.
›
Graph 26.3. / : Total employment because of beer : 2,380 jobs
›
Source : Ernst & Young calculation (2011)
(see Annex III for an explanation of the methodology).
6 | Total employment due to beer
The only brewery based on Malta provides approximately
520 beer-related jobs. By producing its beer around 440
supply industry jobs can be attributed to the brewing
sector. Besides these direct and indirect effects, the
hospitality sector and retailers beneft through beer
sales. Almost 1,350 jobs in the hospitality sector can be
attributed to beer, while in retail some 80 people owe
their jobs to beer sales. The total employment impact is
estimated
16
The Maltese Islands’ Online Community Center, http ://malta.cc/cost-of-living/food-restaurant-beer-drink-prices/, April 2009.
17
Estimation of Ernst & Young, 2011 based on earlier Eurostat fgures.
18
Estimation of Ernst & Young, 2011.
19
Estimation of Ernst & Young, 2011 based on earlier Eurostat fgures.
The Contribution made by Beer to the European Economy
166