A frustrated and disgruntled hotel owner told WhosWho.mt that he has lost around €10,000 in business because of Malta’s most recent powercuts.

The businessman owns hotels in some of Malta’s most busy touristic spots: Gozo, Sliema, St Julian’s and Swieqi, which are also the very same areas hit with extended power cuts for long hours last week.

Asked by this newsroom whether he is willing to fork out more money to invest in generators to minimise loss in the future, he replied in the negative.

“If I’m being honest, I do not wish to invest one more cent in Malta. At the end of the day, I’m not seeing it make sense, the situation is dire,” he replied.

The owner was also impacted with current fluctuations, having suffered damage in one of the lifts.

“In addition to the issue with power cuts, we aren’t doing well. Bookings aren’t high and tourist spend isn’t great. To put you in the picture, we are having instances where tourists are spending time by our hotel pool with a supermarket bag filled with shopping” he adds.

The owner also highlighted that rates already had to be lowered to increase bookings.

He attributes these numbers to an ever-increasing number of hotels opening across Malta. “Ever since I opened my hotel another four popped up within the same road. We have a large supply but what about the demand?” he asked.

The issue of demand vs supply has been long discussed in the past with many stakeholders chiming in on what should be done to balance the two for more cohesion and sustainability.

Adding to his concerns, the businessman remarks that the upcoming five months might be difficult.

“If beds are empty in summer, what’s going to happen in winter?”

‘Full refunds were heavily resisted as it’s not the business owners’ fault’

In Malta’s sister island, the hospitality industry, particularly owners of small businesses, such as rental farmhouses, have been hit hard by the disruption of electricity, having less financial muscle to accommodate refund requests by clients. 

Gozo Business Chamber CEO Daniel Borg told WhosWho.mt that in Gozo, the areas affected with long-hours of powercuts had the highest concentration of farmhouses.

“The hotels are generally well supplied through alternative infrastructure (though this comes at a hefty cost), but the same could not be said for the farmhouses,” he notes.

Asked about feedback from Gozitan businesses, Mr Borg notes that while quantifying refund requests is difficult, many have asked for full refunds which were heavily resisted by owners “as it’s not their fault”.

Nonetheless, he added that if this is to happen again, operators would be hard pressed to give this refund.

“In Gozo we were also faced with multiple power cuts over a short period of time, which have also damaged systems operating pools, for example,” he continues.

He remarks that Government should compensate for the loss of business and any other costs incurred by business owners because of the most recent power cuts.

Similarly, on Monday, Opposition Leader insisted that the Government should provide compensation for the inconvenience and damages suffered by people, like it had previously done last year.

Reacting to this request, the Energy Ministry committed itself to compensate for repeated power cuts with the Times of Malta.

‘The intensification of development in a span of a few years needs to be taken into consideration’

Furthermore, he also delved into the ever-growing concern of overdevelopment and its implications on power supply.

Looking ahead, Mr Borg highlighted that a long-term discussion on the power distribution network, “and more specifically, how Gozo is being supplied”, and the investment required.

He commented that apart from the steep population rise, Gozo has also experienced an increase of Maltese residents buying their second home in the sister island.

“The intensification of development in a span of a few years needs to be taken into consideration, not only for this area but in all other areas,” he said.

In agreement, Malta Hotels and Restaurant Association President Tony Zahra, echoed this sentiment and argued that “Product Malta is what visitors are looking for. The reliable and constant supply of energy is a must, and it is now inexcusable to have power outages.”

This was further highlighted in a statement, addressing the green Balluta Bay ‘phenomenon’ which saw the blue waters at Balluta Bay turn an unpleasant shade of green and MHRA’s concern over lack of investment and cohesive planning to address the growing population of residents and tourists in Malta.