PETALING JAYA: Hoteliers are pleased by the increase in the number of room bookings since the government lifted restrictions on local holidays.
Malaysian Association of Hotels (MAH) chief executive officer Yap Lip Seng said occupancy rate at hotels has climbed.
“The breakeven point for a hotel is about 40% occupancy. Any lower, and hotels will generally suffer losses,” he said.
Yap said based on data MAH received up to last week, average occupancy was at 21.5% but the room rates were generally lower than rack rates.
Hotels are offering special packages and deals, both for immediate stays as well as advanced bookings.
Yap said this will encourage locals to book and travel. The association is running campaigns to create awareness on domestic travel and to explore the hidden gems of the country, he added.
“The public can also take advantage of the SST exemption for hotels till June 2021.”
Yap said the services provided at hotels at the moment comply with the government’s standard operating procedures.
Tourism, Arts and Culture Minister Datuk Seri Nancy Shukri said the tourism sector has seen an upsurge, with hotel reservations nationwide showing an increase of up to 30.74% up till June.
She said from March, the occupancy rate was 18.29% but dipped to 8.86% in April during the Covid-19 peak. In May, when the recovery movement control order was imposed, occupancy was 9.63%.
She said the surge in occupancy rates shows that the public is starting to go for holidays.
Malaysia Budget Hotel Association deputy president Dr Sri Ganesh Michiel said the response from the public after the lifting of the restrictions has been encouraging.
“We see an upsurge in customers but it is mostly during weekends and at destinations like Langkawi, Tioman and Cameron Highlands.
“The occupancy rate at weekends can touch 90% but on weekdays, it averages around 30% to 40%.”
Ganesh said hotels in the city are still suffering as business travellers are staying away, with the occupancy rate at 10%.
He said for a budget hotel to break even, it needs an occupancy rate of 60% now.
“This can be attributed to the fact that we are giving 50% discount on room rates because the higher-end hotels have also cut their rates.”
Ganesh said they also have to pay a commission to online travel agents which eats into their profit.
The government has provided a lot of help to the tourism industry but they need the moratorium to continue, he added.
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