The Malta Hotels and Restaurants Association yesterday rubbished official statistics which showed their prices increased by 11.7 per cent last month.

The MHRA challenged the findings of the Harmonised Index of Consumer Prices published by the National Statistics Office last week, saying that based on its own figures, the statistics were "erroneous and misleading".

"Based on our own internal figures and information, these statistics are both erroneous and misleading and appear to be generated by the methodology being used by the National Statistics Office in its calculation of the consumer price index, which is resulting in the provision of wrong information to the general public."

It said in a statement that this was not the first time it was at loggerheads with the NSO.

One recent occurrence concerned figures which showed that guest nights in February had increased by 2.7 per cent over the same period last year, while MHRA's internal statistics showed a drop of around 14 per cent.

The NSO subsequently pointed out that the report was compiled from an ad hoc survey conducted by its staff at the airport upon visitors' departure.

Another incident mentioned by the MHRA was that concerning the national harmonised price index for the entire restaurant sector, which was based on a survey of just seven restaurants out of approximately 1,500 catering establishments throughout Malta and Gozo.

"These simple and basic flaws in such an important national survey seriously question the competence of the NSO," the association said. The MHRA said its figures showed that arrivals in hotels between November 2008 and last March were down by 18.5 per cent, while guest nights were down by 14 per cent.

Room rates were down by between 20 and 50 per cent depending on the category of hotel.

These results were having a major effect on employment with a drop of 11 per cent in full-time jobs in five-star hotels, six per cent in four-star hotels and 10 per cent in three-star hotels. There had also been a loss of over 25 per cent in part-time jobs as well as a considerable loss of jobs from the restaurant sector.

"The prevailing international economic crises and the effect this is having on the local hotel and restaurant industry is not to be underestimated and there could be some very serious casualties if the situation does not somehow make a quick turnaround," the MHRA warned.