Fuel increases cost hotels in excess of €2.5m in 2010

The Malta Hotels and Restaurants Association said the cumulative increase of thin fuel oil over the past thirteen months exceeds 50%, and that this was putting a heavy burden on the industry.

"The MHRA calculates that the increase in the cost of thin fuel oil alone, over the past months, has cost the hotel industry around €2,450,000 million, which averages at €18,550 per hotel, per annum. This increase does not include the consumption of diesel and petrol, which if added will push up the cost of increases on fuel to around €20,000 per hotel over the past year."

Thin fuel oil is extensively used by the hotels for heating purposes during the winter months when the industry generally operates at a loss and consequently this, in addition to the very high utility rates, will probably push more hotels to consider closing during the winter period, as further losses will become unsustainable.

"The MHRA feels that if this had to happen this will have a detrimental effect on the tourism industry at large and indeed on the economy.

"The MHRA is also concerned about the fact that the cumulative percentage increase of thin fuel oil surpasses that of other fuel prices and MHRA will be writing to the Malta Resources Authority asking for an explanation."