Bugibba Holiday Complex to close in winter

The Bugibba Holiday Complex, which forms part of the Island Hotels group, will close between November and May after a string of poor winters, The Times has learnt.

Island Hotels Group director Winston Zahra confirmed the news, pointing out that the decision had been taken following four consecutive poor winters "...we could not sustain yet another bad winter especially with the way things are looking for winter 2006/2007," he said.

The decision on whether to open for the winter 2007/2008 will be reassessed in May when the hotel reopens for the summer.

"It will all depend on the extent to which demand has recovered," he said.

The hotel, a three-star property, caters mostly for half board and all-inclusive packages.

Full-time members of staff have been retained within the group and will be relocated to its other three hotels.

"In this way none of our full timers has lost their employment. Part timers have also been retained on the group's books and will be given work across the rest of the properties of the group as well as our event catering company.

"In light of the overall situation we feel that under the present circumstances we have acted very responsibly and have kept the interests of all our staff at the forefront of our mind at all times," Mr Zahra emphasised.

In August, Labour's spokesman for tourism, Evarist Bartolo said the drop in occupancy level would lead "a considerable number" of three and four-star hotels in Malta and Gozo to close down in winter in order to cut their operating losses.

The closure of these hotels, Mr Bartolo predicted, would have a ripple effect on other people who work in the tourism sector, either directly or indirectly, like restaurateurs, transport and entertainment businesses.