Malaysia

Hoteliers can expect more occupancy growth driven by foreigners, says MAH

Steady increase recorded in first quarter of 2024, says industry group.

Updated 2 weeks ago · Published on 29 Apr 2024 8:00AM

Hoteliers can expect more occupancy growth driven by foreigners, says MAH
Malaysian Association of Hotels chief executive officer Isaac Raj says that it has projected an average occupancy of 57, which is higher than the previous year by about 10%. – Pic courtesy of Isaac Raj, April 29, 2024.

by Noel Achariam

HOTELIERS are looking forward to experiencing better business as more international tourists are expected to visit the country in the coming months.

The Malaysian Association of Hotels (MAH) said its members can expect to see continuous growth in the second quarter of 2024.

MAH chief executive officer Isaac Raj said that it has projected an average occupancy of 57, which is higher than the previous year by about 10%.

“Based on our demand and supply tracking, we are seeing longer forward bookings which predominantly represent international bookings.

“As such, we expect more occupancy growth to be driven by international travellers,” he said.

Isaac said that according to MAH data platform (Adata) for the first quarter of 2024, they have seen steady growth as hotels have achieved an average occupancy rate of 56.8%, a 7.4% increase year-on-year as opposed to 2023.

He said for the first quarter of 2024, three states had recorded an increase in occupancy compared to 2023.

“For Q1 2024, Kedah is leading with an average occupancy of 63.1% followed closely by Sabah and Penang at 62.0% for both states.

“This has changed compared to Q1 2023, as Penang lead with 57.8% followed by Kedah at 56.0% and KL at 54.8%.”

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

As for tourist arrivals for the period of January to December 2023, TM had recorded 20.14 million visitors – an increase of 100% compared to the same period for 2022.

In 2023, TM said tourists had spent about RM71.31 billion – an increase of 152.5% compared to the same period for 2022.

Govt actively promoting tourism

Isaac believes the government has been actively promoting Malaysia’s tourism sector.

He said that initiatives such as the visa-free programme for Chinese tourists, launched at the end of last year, are expected to significantly benefit the industry.

“Furthermore, the government has been proactive in exploring new tourism angles, such as bolstering the country’s Muslim-friendly tourism and establishing Malaysia as a regional ‘umrah’ hub, which taps into the growing Muslim tourism market.”

Last year, Prime Minister Datuk Seri Anwar Ibrahim announced visa-free travel for tourists from the Middle East, China, and India starting December 1 for a month.

Isaac said that MAH can see the government’s support for local-led initiatives.

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

“MAH is pleased to have Tourism Malaysia as its supporting partner for the upcoming MAH Domestic Tourism Fair Jom Cuti-Cuti Malaysia.”

The fair is scheduled for July 6 and 7 at Pavilion Bukit Jalil, and aims to promote domestic tourism.

This will be followed by a Bazaar Cuti-Cuti Malaysia in August at Seberang Perai, then Ipoh in October and Johor Baru in late November.

Isaac said that in the competitive landscape of the hospitality industry, hotels employ various tactics to distinguish themselves and cater to the diverse needs of tourists.

“From providing unique amenities to offering tailored experiences, hotels strive to stand out in the market and attract visitors.”

He added that, overall, these collaborative efforts between the government and hotels underscore their commitment to enhancing Malaysia’s tourism landscape and offering a wide range of experiences to visitors. – April 29, 2024.

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