Energy costs were wiping out hoteliers’ revenue gains and putting the sustainability of the hotel industry in doubt, the hoteliers’ association said.

Enemalta was one of the major contributors to the higher costs that had to be shouldered by hotels and the Malta Hotels and Restaurants Association was concerned that its inefficiencies were seriously impacting the industry, association president Tony Zahra added.

Mr Zahra was speaking at a special meeting of the Malta Council for Economic and Social Development held last week at the association’s request to discuss Enemalta and the impact of the energy rates on the sector. He pointed out that tourism represented 30 per cent of Malta’s gross domestic product, employed thousands of people and impacted practically every person on the island.

Over the last three years, the hotel industry registered increased arrivals, bed nights and room rates leading to higher revenue. However, the increased revenue had been eaten up by increased costs, he lamented.

After years of under-investment, Enemalta’s electricity generation efficiency rate was a low 31.5 per cent. In simple terms, for every €1 of oil, it produced 31c worth of electricity.