The recent increase in the price of diesel and kerosene is yet another blow to the tourism industry’s competitiveness, according to hoteliers.

In a statement, the Malta Hotels and Restaurants Association said the Malta Resources Authority, which had decided on the 2c increase per litre, had totally ignored tourism industry stakeholders when it approved the increase.

“The steady increases in the cost of running business operations need to be addressed immediately as our competitiveness is constantly being eroded,” MHRA’s new president, Tony Zahra, said.

He said the cumulative increase of thin fuel oil over the past 18 months had cost hoteliers an additional €2.5 million, putting a heavy burden on the hotel and restaurant industry.

Reacting to the statement, the government said it had an effective tourism strategy which was yielding more tourists and more revenue. While the price of diesel had increased by 2c in Malta, the average increase in other European countries was 5c.

It said only a few European member states had cheaper diesel than in Malta, which is priced at €1.32 compared to the €1.42 European average. The most expensive diesel in Europe is sold for €1.64 a litre.