Business

Hotel room rates in US dollars makes industry more competitive

Malaysian Association of Hotels says proposal will only apply to international tourists

Updated 4 years ago · Published on 15 Jul 2022 9:03AM

Hotel room rates in US dollars makes industry more competitive
MAH secretary-general Datuk Megat Shahrul Azman Abas says the practice is nothing new as many countries in the region have their room rates in US dollars. – File pic, July 15, 2022

by Ian McIntyre

LANGKAWI – The proposal to have hotel room rates in US dollars only applies to international tourists and guests, said the Malaysian Association of Hotels (MAH).

The group’s secretary-general Datuk Megat Shahrul Azman Abas said the proposed plan will see room rates available in a two-tier system – one for international guests and another for Malaysians.

“The formula to mark the conversion of the ringgit to the US dollar will be based on the present exchange rates.

“And with the greenback rising against major currencies worldwide, the hotel rates (in Malaysia) are relatively cheaper for foreign tourists,” he told The Vibes.

“Local tourists will continue to be charged in ringgit.”

He said this practice is nothing new as many countries in the region have their room rates in US dollars.

“It is expected to make our hotels here more competitive. We can also hope to attract more tourists if they realise that our rates are cheaper even when they are in US dollars.”

He added that local and foreign guests can expect a high quality of service among MAH members.

Previously, the tourism authorities shot down the proposal because of an assumption that the rates in US dollars would create a misconception that Malaysia’s hotel rooms are pricey.

Megat Shahrul said many countries that adopted this have continued to flourish.

In another development, he said the hotels in Malaysia are expected to fully recover from the financial challenges brought on by the Covid-19 pandemic.

“Now the recovery process is only about 50%. It will take time to regain momentum in the global tourism marketplace.”

Coupled with rising operational costs and an acute labour shortage, Megat Shahrul said hotel owners have no choice but to seek the deferment of the minimum wage ceiling of RM1,500, which was imposed earlier this year.

He also hopes that the industry will be allowed to engage more foreign workers to address labour issues. – The Vibes, July 15, 2022

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