THE average occupancy rate of hotels in Malaysia is recovering but is still in a critical state, says the Malaysian Association of Hotels (MAH).
This followed media reports that Tourism, Arts, and Culture Minister Nancy Shukri had stated that hotel occupancy is between 75% and 100%.
The association clarified that the minister was referring to the occupancy rates of certain hotels, and not the average occupancy hotels in the country.
“MAH had in fact earlier submitted hotel occupancy reports compiled from its 13 chapters across the country to the ministry, with the reports showing an average occupancy of 21.5%,” said the association in a statement.
It also stated that the media reports had caused much anxiety among industry stakeholders, especially the hotel industry, which has been badly affected by the Covid-19 pandemic since January.
According to MAH’s reports to the ministry, high occupancy was observed at selected destinations and hotels such as Melaka, Penang, Port Dickson, Kelantan, Pulau Redang and Pulau Perhentian.
Kelantan and Terengganu were also highlighted for high average occupancy rates for the month of July, which signalled the return of domestic tourism. The states saw occupancy rates of 70% and 75% respectively.
However, this is not the case for other locations.
“Higher occupancy recorded at these destinations is likely temporary and seasonal, with locals taking advantage of the weekend before school reopens. Main cities and states such as Kuala Lumpur, Selangor, Johor, Sabah as well as Kedah and Perlis are still low, with average occupancy between 12% and 20% at best,” said MAH CEO Yap Lip Seng.
Yap shared that the industry is working closely with the Ministry of Tourism, Arts, and Culture, as well as Tourism Malaysia, on initiatives to drive domestic tourism and create awareness about the RM1,000 personal income tax relief for Malaysians on domestic tourism expenses at registered hotels for 2020 and 2021.
“Malaysians should also take advantage of the current Service Tax (SST) exemption at hotels,” said Yap. – July 17, 2020
