In a statement, Mr Bartolo said that reduced tourist spending was leading to the closure, or possible closure, of 20 hotels in Malta and Gozo.

Hoteliers were reaching the conclusion that investment in tourism was not a profit-making exercise, and were either closing down their hotels, or converting them into homes for the elderly or into apartments.

The closing down of hotels meant loss of jobs. To fill up hotels, the prices being charged were low and this meant that running hotels was no longer viable. Matters do not appear rosier for next year as some five-star hotels were accepting rates of Lm11 per night. Mr Bartolo said that the government does not seem to have a plan to improve the tourism industry.