One of St. George's oldest and most famous drinking institutions is set to close for two-and-a-half months due to the effects of the economic crisis.

The White Horse Pub and Restaurant in Kings Square will shut its doors from December 24 to mid-March as a result of soaring energy costs and a drop-off in revenue.

But pub and restaurant owners in Hamilton and Dockyard said they were not feeling the pinch of today's financial turmoil, although they were cautious about the impact it might have on their business next year.

Daniel Melnyk, general manager of the White Horse Pub and Restaurant, who has been running the business for the past three-and-a-half years, said it was the first time the pub had to close in the five years since it was taken over by current owner Kevin Sousa.

"We are doing terribly," he said, when asked how trade was doing. "In fact, this is the first time in the five years since the current owner took over that we are going to close.

"We are going to close on December 24 for two-and-a-half months."

Mr. Melnyk said the move was as a direct result of the economic downturn, with sky-high energy prices and less money coming in making it hard to balance the books. It cost the pub less to be closed than open, he said. "The summer was worse than last year, but the winter, with the cost of rent and electricity sky-high and having revenues that are rock-bottom, is tough.

"But we have been feeling it for a while and have been thinking about closing since last summer."

The White Horse, which has been open since the 1700s, employs 16 full-time staff, including three bar tenders, two porters and three kitchen staff, who will be laid off due to the closure. In peak season, the bar and restaurant employs 40. One third of the employees are Bermudian, according to Mr. Melnyk.

"The staff are being laid off, but we are hopeful that some people can look for part-time work here, although a lot of people are facing the same situation," he said.

"It is not just us - the whole of St. George's is suffering - everyone is down about 40 percent. We have been affected across the board, but I really feel bad for some of the other places which have been impacted."

Chris Garland, general manager of Flanagan's Irish Pub and Restaurant, said the pub had not experienced a slowdown in trade yet, but admitted he was concerned about what impact the economic downturn would have on business next year.

"It is the Christmas period and everybody can do well at this time of year - if you don't you are doing something wrong," he said.

"We are doing just as much trade as normal, including Christmas parties, and we are also doing our usual winter specials menu from Monday to Thursday."

Arthur Reilly, one of the managers of the Robin Hood Pub & Restaurant, said trade was good, despite the current financial situation. "We have been doing all right," he said. "The football keeps us busy. We have been keeping level pegging with last year - it is pretty steady."

Frog and Onion Pub owner Carol West said that her business was managing to offset the economic pinch with a series of programmes through the Christmas period, such as Santa Claus on Sundays.

"We are holding our own," she said. "Some nights we are quite busy, but other times we are quiet, so it's mixed.

"We have been getting lots of small groups for Christmas parties, which we usually have, and regulars because we try to keep ourselves affordable."