Statistics showing that hotels and restaurants raised their prices by 11.7 points in April have been rubbished by the Malta Hotels and Restaurants Association.

The MHRA said in a statement it was challening the findings in the Harmonised Index of Consumer Prices issued last Friday.

“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 this was not the first time it was at loggerheads with the NSO. One such recent occurrence concerned figures which showed that guest nights in February had increased by 2.7% over February of last year, while MHRA’s internal statistics showed a year-on-year drop of around 14% for the same period. The NSO subsequently pointed out that the report was compiled from an ad hoc survey conducted by NSO staff at the airport upon visitors’ departure and admitted that the report did show more reliable statistics.

Similarly, it recently resulted that the national harmonised price index for the entire restaurant sector was based on asurvey of only 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 questions the competence of the NSO," the association said.

It said arrivals in hotels between November 2008 and March 2009 were down by 18.5%, while guest nights were down by 14%. Room rates were down by between 20% and 50%, depending on the category of hotel in question.

These disastrous results were having a major effect on employment with a drop of 11% in full time jobs in five star properties, 6% in four star properties and 10% in three star properties. There had also been a loss of over 25% in part time equivalent 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 turn-around," the MHRA warned.

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