Following last Wednesday’s presentation by Government of the proposed new water and electricity tariffs during an MCESD meeting, The Malta Hotels and Restaurants Association (MHRA) Council is calling an extraordinary general meeting next Tuesday morning to discuss the stand Hoteliers and restauranteurs will be taking in this regard.

MHRA is very much disappointed with the lack of consultation on this issue and surprised with Government’s declared stance on the matter. Government always indicated that the system previously in place would be retained and never discussed the matter with the constituted bodies in order to try and find an acceptable way forward that does not have a very high social and economic consequence.

The options presented last Wednesday will be extremely damaging to the tourism industry and furthermore MHRA cannot understand government’s admission that no social and economic impact assessment was necessary in the light of the new tariffs being proposed.

MHRA is convinced that the proposed measure will increase operational costs three fold. There will be a substantial increase in costs due to the increase in tariffs themselves, the increase in cost of materials purchased from local manufacturing firms that will also have their costs increased and the impact of upward pressures on wages.

Ultimately the MHRA believes that such an upward pressure on costs at a time when the industry is bracing itself for a potential drop in demand due to the international economic situation, is going to lead to very serious problems in the industry. The MHRA predicts the loss of a high amount of jobs and closure of a number of hotels that simply will not be able to operate any more under this new tariff structure. The consequence on so many small businesses that also depend on hotels will be very substantial.