Hotels expecting more guests in December

With only the domestic market to work with, business is still limited for hotels in Malaysia.

THE hotel industry is hoping to welcome more guests next month during the holiday season, for about 50% of average occupancy nationwide.

Malaysian Association of Hotels (MAH) chief executive officer Yap Lip Seng says some popular local destinations enjoyed high hotel occupancy rates due to the people’s desire to go on holiday coupled with recent public holidays and long weekends.

“Many travelled out of the Klang Valley, typically choosing resorts for their long awaited getaway.

“Popular destinations are Langkawi, Penang, Port Dickson, parts of the East Coast, Ipoh and Genting Highlands.

“But despite the pent up demand, average occupancy for the country was only approximately 40%,” he says.

Hotel occupancy peaked over the long weekends at popular holiday and nature destinations, while others remained moderate.

Nevertheless, the association is expecting more business, between 40% and 50% average occupancy next month.

“Similarly last year, when the interstate travel ban was lifted in December, hotels saw a surge in bookings for Christmas and New Year holidays.

“Average occupancy peaked at 43% over the weekend,” Yap recalls.

But with only the domestic market to work with, he says business is still limited at lower spending power, with demand fluctuating between weekdays and weekends.

“Again, these are driven by travellers from the Klang Valley looking for a quick getaway after being subject to the interstate travel ban.

“Popular choices among Klang Valley folks are the resorts and islands. They enjoy traveling out of the city particularly to nature destinations,” he adds.

Yap says these travellers are willing to spend more as they used to travel overseas consistently but are now confined to only within the country.

“These are the ones driving business to the high end hotels and resorts now. But once international borders reopen, they may shift back to their preferred international destinations,” he says.

Yap says that the industry is hopeful about the reopening of international borders in stages, calling it “much needed”.

“Perhaps there can be more focus on Asean countries first and then specific markets such as China,” he suggests.

Yap highlights that hotels have been well prepared since day one, demonstrating a high level of compliance with standard operating procedures (SOPs) that minimise risks for both employees and guests.

“Part of MAH’s Clean & Safe Malaysia hygiene and safety independent certification label for example, on top of strict SOPs in all areas of the hotel, also includes contingency and isolation plans in the event of any detected cases.

“Hotels are safe to reopen, not just for stays but also dining and as venues for events,” he says.

On the question of Covid-19, Yap says Malaysia should shift its focus on daily figures to transitioning into an endemic stage where we live with the coronavirus.

“We must be able to manage the situation instead of avoiding it.

“The current vaccination rate and our healthcare capacity are both very encouraging in keeping the situation under control,” he adds.

While Malaysia’s borders are yet to open, he says the industry expects the domestic market to continue to dominate for another year as it awaits the return of international tourists.

Malaysia Tourism Council president Uzaidi Udanis says the industry is keen on the country reopening its borders as many resort operators depend on foreign visitors.

“The sooner the borders are opened, the better it will be for the industry.

“Right now, Malaysians can travel out of the country but the same is not true for foreign tourists to come here,” he says, adding that international visitors can only go to Langkawi in the travel bubble.

Uzaidi proposes that the council act as a coordinator between health authorities and tour operators to disseminate information on Covid-19 hot spots to keep everybody safe, including foreign tourists and locals alike.

“We must learn to live with Covid-19 and learn how to minimise its spread through data centres, or reference points for the data on active Covid-19 cases for tourism operators.

“The council is willing to coordinate such data centres to disseminate information to tour operators to protect everyone,” he says.

Uzaidi, who is also Malaysian Inbound Tourism Association president, says such efforts will ensure a better experience for all, as tour operators would know which spots to avoid to prevent any outbreaks.

For now, the industry is preparing for the borders to be reopened by rehiring workers like kitchen staff and marketing officers.

“Some former tourism workers like tour guides have found a different source of income during the pandemic.

“But now, industry players have to adjust to the situation, including a bigger focus on digital marketing,” he says.

As the industry is still recovering, Uzaidi says extraordinary steps are needed for these extraordinary times.

“If possible, companies should give incentives to workers to go on holidays to reward employees for their hard work and at the same time, help support local tourism,” he adds.