Wednesday, 29th October 2008 - 16:37CET
Hotels expect their electricity bill to rise by €5m in three years
The Malta Hotels and Restaurants Association said today that the increase in utility tariffs announced by the government would be difficult to sustain.
"The international economic climate is far from encouraging and the industry was already bracing itself for a downturn in business levels due to reducing traveller numbers," the association said.
"With the original proposals put forward by the government, hotels would have faced an increase of 56% in their utility bills, an increase that would have put many hotels into a position where their operation was no longer sustainable.
"Following the various meetings that took place and specifically the government’s reduction of €60 million from its original expectations, this impact has now been reduced to an average increase across the industry of 12% in the first year and a further 7% in each of the following two years.
"This reduction was achieved without placing any extra burden on other consumers."
"Over the next three years, if oil prices remain as they are, hotels will collectively pay over €5 million more for their electricity however this cost is going to be borne mainly by the larger hotels in the four and five star categories."
The association said it was critically important for all concerned to focus on how the Island was going to deal with the international economic downturn.
"The downturn could effect us very negatively and we all have to work together to ensure that we minimize the effect it has on our economy, our jobs and our livelihoods."
It again urged the government to consult the nation's stakeholders before such drastic measures are implemented in the future.
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Comments
In 1996/7 we were regaled with electricity tariffs almost the same as we are having now when oil was JUST 12 dollars per barrel. Did we have the govt. we deserved then? Nobody from the MLP proposed any national protest then. Moreover no solution in the present situation has been suggested.
I wasn’t being partisan. Realistic rates will encourage new ways of implementing green initiatives – subsidies encourage waste and result in a hike in income tax.
I agree with you that the installing solar panels on the roof at Mater Dei Hospital would be a great idea.
Not even the MaterDei hospital has cared for all the lack of responsibility, how do you pretend that these hotels will be giving the example to the government!
We have to admit it, Gonzipn has prickled the balloon; the Nationalists' failures are all going out. Pity that we have to compensate for them!
Higher utility rates will encourage these green issues and make them more economically feasible.
Foreign Governments have introduced a Green Policy to safeguard all these green initiatives. When asked about this policy, Austin Gatt simply smiled! The Nationalists' Government is twenty years late. Apparently he knew what was coming.
PN has long ago promised us a whole energy reform but nothing became factual. Even though they laughed at Mintoff when he wanted to build renewable energy turbines in the South of Malta!!
Amazing how the current PN administration choose to leave out anymore consultation with all social partners and choose to forge ahead with its arrogance!