A DROP in tourism numbers has forced yet another hotel to propose closing its doors to make way for flats.

The owners of the Lavender Villa Hotel in Grouville, which has been in business for about 30 years, have said that the hotel is no longer profitable and predict that the credit crunch will make matters worse for them.

Anthony and Lesley Shelton, who have been running Lavender Villa Hotel, Rue à Don, for two and half years, said that they have noticed a decline in tourism over the last couple of years. Mr Shelton (59) said: ‘The tourism industry is getting worse and worse here. Smaller hotels are no longer viable. You need a bigger place to make money.

Scottish-born Mr Shelton, who has been a hotelier in Jersey for 30 years, and his wife have applied to Planning to demolish the 21-bedroom hotel and build ten flats. He said that they are committed to running the hotel this season but if they receive Planning approval then they would close in October next year.

• Picture: Anthony and Lesley Shelton outside the hotel