Hotels to maintain current rates unless supplies get costlier, says MAH

HOTELS will maintain their current room rates until their suppliers raise rates for hotel supplies and consumables, the Malaysian Association of Hotels (MAH) said.

The government stopped subsidising diesel last month except for some sectors, and the move has affected the travel and tourism industry.

MAH chief executive officer Isaac Raj said for now, the diesel price increase has not affected hotel operations.

“We are not going to raise our prices (room rates) even though the diesel increase has affected bus operators. Room rates in hotels will remain for now,” he told The Vibes.

“We must see whether it (diesel increase) is affecting food delivery, increase in food prices and other issues.

“If food prices go up, then prices at our food and beverage outlets may increase. For now, we are keeping our prices.”

The MAH currently has 1,111 members across 13 chapters, managing 1,020 hotels together with their 91 associate members.

Last month, inbound tour agents and tour bus operators said they will be forced to adjust the price of their packages if there is no diesel subsidy as their businesses will be affected.

They said whenever there is a cost increase, their operational costs will also increase.

They also said other components such as transport, hotels, restaurants, tour guides and various packages will be affected.

Communications Minister Fahmi Fadzil said Putrajaya will look into ways to help tour bus operators following the removal of diesel subsidies, adding that the government was aware of tour bus operators’ concerns about higher fuel prices.

Starting June 10, the retail diesel price at all petrol stations in Peninsular Malaysia was set at RM3.35 per litre, which is the unsubsidised market price based on the average for May 2024, according to the automatic pricing mechanism formula.

Raj said that given the current volume of domestic occupancy, they are countering any increases (in operation costs).

Meanwhile, MAH Penang chapter chief Datuk Tony Goh said they are not looking to raise accommodation prices.

“We cannot increase our prices because the transportation (tour bus costs) has increased. So, if we were to increase prices, it would inflate the whole cost of foreign tourists coming here for holidays.

“So, we must absorb whatever costs that have been inflated by the diesel increase.”

Goh said that they are monitoring their operational costs for any increase.

“We are monitoring the situation as it (diesel increase) was just announced. We also must see if there is any increase with our suppliers. We also have contracts with some suppliers, so they simply can’t increase the prices.”

According to Tourism Malaysia (TM), foreign tourist arrivals for the period of January to February 2024 totalled 3.72 million people – an increase of 33.2% compared to the same period in 2023.

TM said the top five sources of foreign travellers are Singapore (1.16 million), Indonesia (0.59 million), China (0.53 million), Thailand (0.26 million), and Brunei (0.18 million). – July 10, 2024.