Bars and nightclubs report 'drop in business'

Bars and nightclubs around the island reported a drop in business over the festive season, with people cutting down on spending considerably, Philip Fenech, president of the hospitality and leisure section of the Chamber of Small and Medium Sized Enterprises - GRTU, said.

Although some businesses saw an increase in trade, most experienced a massive slowdown, Mr Fenech added.

"From the feedback we have received, some bars and restaurants reported increased business over the festive season because they would have managed to secure a large group or else a party but others either saw no change or else said it was disastrous. Overall, outlets have reported a drop in business of between 30 and 70 per cent," he said.

As expected, he said, Christmas Eve and New Year's Eve were the two busiest days but, contrary to previous years, the week between Christmas and New Year was not so busy. On some days, he added, there was a complete standstill, with many opting not to open at all or closed after a brief while.

Mr Fenech attributed the situation to sliding confidence in the wake of the global economic slowdown.

However, he also pointed out that patterns have changed tremendously in recent years. The attraction of Christmas partying has waned over the years. This year, with the state of the economy and the state of people's wallets, it seems like people were even more cautious.

Moreover, the drop in tourism arrivals continued to worsen the situation.

"The facts are what they are. It's not a time for bickering but to roll up our sleeves and face the realities we shall be facing throughout 2009. We need to work together to improve our product, now more than ever before, and tap into the opportunities that exist within the tough challenges ahead," he said.

Looking ahead, Mr Fenech said that, given the new flights to Malta by Easyjet and Ryanair and the funds allocated to improve the product in localities, the new year is an excellent opportunity to improve the overall product offered to tourists, starting from the state of pavements and roads and street furniture to the level of service offered.