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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P.Schembri
Oct 29th 2008, 18:46
@MJ Gatt. OH really pull the other one. There wasn't any economic crisis in 1996-1997. All labour tried to do was to repair the deficiencies that Enemalta had at that time. Now look what happened. With the Government turning a blind eye for the last 10 years, what happened? The problem is staring us in the face now. And what timing!!! With an economic crisis on the horizon! As to proposals. Who's in Government MLP or PN? And who has all the authorities, committies and whatnot working under him to give him proposals? If they aren't capable of proposing, then the Government should make them resign, not letting them suck our pockets dry.
carmelo briffa
Oct 29th 2008, 18:20
I am not economist but I have an Idea. If the PN wants to help the industry he should start on his staff. Reduce salaries to about 25%, for the next ten years. Most of the MP have two salaries one from the parlament and one from their work that they hold. I have a lousy pension which it does not let me live close to comfortable and PN Gonzi want to put burden on me and my wife. Every Government office even at 9.00 am. with their lights fully on who is paying for all this waste us , the tax payers. How about give us what they promise , this was only six months ago, it looks that they could not do their homework right. 20 years of promisses promisses----Parla si- fatti no
patrick mifsud
Oct 29th 2008, 18:13
i have to be a bit harsh but my expression will be - tough luck. why do we have to pay for their electricity bills when they don't care about wastage as people mentioned below. what profits do they share with us? charging extremely high prices for everyhting. try to be proactive and lead a program how to reduce consumption instead of grumbling. it seems that the electricity rates are increasing only in malta. do you watch foreign news??? i wish we had a power station that works by grumbling. we maltese will be able to provide power to the whole world.
M J Gatt
Oct 29th 2008, 18:11
@J Cutajar
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.
j.cutajar
Oct 29th 2008, 17:48
IL-Poplu ghandu Gvern li jixraqlu!!!! Mhux hekk ried il-Poplu? Flimkien kollox possibbli. Issa ngawdu.
E Gatt
Oct 29th 2008, 17:27
@ V Fenech
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.
V Fenech
Oct 29th 2008, 17:16
Mr.Gatt, leave all partisan issues out!
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!
carmel tonna
Oct 29th 2008, 17:12
MHRA is quoted saying that "Over the next three years, if oil prices remain as they are, hotels will collectively pay over €5 million more for their electricity'. What does it mean 'as they are' -at US$ 62 per barrel?
E Gatt
Oct 29th 2008, 17:09
Hotels generally have large roofs which could easily be used to install solar panels. Many still have not changed their electric bulbs to energy saving types. They could also invest in ways to treat and recycle their waste water.
Higher utility rates will encourage these green issues and make them more economically feasible.
V Fenech
Oct 29th 2008, 17:07
@ Michelle Attard
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!!
michelle attard
Oct 29th 2008, 16:49
Good... let their tariffs increase. It is shameful to see the waste of electricity in hotels - empty lobbies with airconditioners full on, hundreds of light bulbs (none of which are energy saving), electronic displays, plasma screens, etc. etc. Maybe now owners/operators will start to take note and conserve energy. It seems that we Maltese only learn when we feel the pinch - then let this be it (and this goes for individual households / increased w & e tariffs too).
V Fenech
Oct 29th 2008, 16:45
This is an invitation for all Nationalists' apologists to comment on this article. The Gonzipn failure is being retold from the horse's mouth. There's going to be a complete mess with regards to our most delicate economic sector; tourism.
Amazing how the current PN administration choose to leave out anymore consultation with all social partners and choose to forge ahead with its arrogance!