Hot spots are just a localised dermatitis. There are a huge number of causes including things like insect bites and small wounds, they can also be allergic based. The break in the skin and the itchy stuff in insect bites leads to the animal to scratch. Scratching leads to inflammation and infection = Hot spots
The way we deal with these are quite simple. Firstly we need to clip the area around the spot to stop continual bact contamination and allow us to medicate the area. Then we use a topical steroid and antibiotic product that will help reduce the itching and alse clean up the infection.
In terms of prevention it is very hard to stop insects biting so try and stay away from marshy areas. If you notice one you can clip it yourself and try and stop your dog from scratching it. Bathe in saline and if it gets infected or won't clear up go and see your vet.
Hello Steph, Unfortunatly I'm not being able to find proper medication here. But a pet shop promised to provide me with hot spot's steroid within days (i'm crossing my fingers). As per Todd's advice i have clipped the hair around the spot (not much left, the spot is under the arm), and washed with cold saline water. I also apply a cold pack on it regularly, the positive results are showing slowly.
Btw, regarding the flies, a pinch of garlic powder to the daily meal is giving amazing results, I even forget to add the spray