In view of this, and as part of the process that will eventually lead to a decision on the matter, the group has submitted an application to the Malta Environment and Planning Authority for a permit to develop the hotel’s site.

The application, submitted on 2 August, requests Mepa to grant the group permission to demolish the hotel and construct apartments instead. The hotel, which overlooks the splendid Mgarr Harbour, with breath-taking views of Comino and Malta, was constructed in 1992.

Tumas Group chairman George Fenech confirmed the group’s plans when contacted by The Malta Independent yesterday. He said the group was keeping all its options open with regard to the future of the hotel.

“The hotel has been in operation for over 10 years and it needs to be refurbished. The group is at present considering its options – basically whether it is worth it for the group to spend a considerable sum of money on its refurbishment or whether it paid more to demolish the hotel and start from scratch. We are considering these options,” he said.

Another option in the groupís list is to replace the hotel with apartments, similar to those the group constructed around the Malta Hilton, the first class five-star superior hotel the group owns in St Julianís.

Mr Fenech said the decision will be based on what makes most commercial sense for the group. It is a business decision, after all, he said.

When asked, Mr Fenech said that until October 2005, the hotel will have to live up to the commitments it has already made. The final decision will have to be taken between January and April next year when the hotel will be planning its future beyond the following October.

On the application submitted to Mepa, which covers a total area of 3,960 square metres, Mr Fenech explained that the proposed development will be kept within the limits of the existing hotel ìso there should be no problems with Mepaî.

But while the group is considering what options it has on the future of the hotel it owns, the hotelís general manager said he was more than pleased with the performance of the hotel so far, to the extent that he described it as better than last yearís.

Speaking to The Malta Independent, Paul Banavage said the hotelís performance was ìmuch better than last yearísî, especially in June, July and August. The beginning of summer was not at all encouraging, but it picked up, he said.

He said the performance of the hotel must also be seen against the backdrop of the performance of the tourism industry in Malta and other holiday destinations around the world, as well as against the backdrop of the difficult market Gozo has to face.

He said that one has to take into consideration that very few operators consider L-Imgarr Hotel, or other hotels in Gozo, as the perfect venue for conferences they are organising. First they look at hotels in Malta and only come to us if their clients specifically request it, he said.

Asked about what is envisaged for next year, Mr Banavage said it was positive. He added that there are certain periods next year for which operators have already been told not to send more tourists because the hotel is already completely fully-booked.

The hotel has 54 air-conditioned rooms, including sea view rooms, superior rooms and exclusive rooms, three restaurants, three bars, an outdoor swimming pool and a fitness centre with a sauna. It employs 52 full-time staff and about 30 part-timers.

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