Malaysia

Penang hotels fear worst ever occupancy rate since 1974

The industry is worried that it will not withstand competition from neighbouring countries when the situation improves due to a dearth of support from the government now

Updated 5 years ago · Published on 12 Nov 2020 8:03AM

Penang hotels fear worst ever occupancy rate since 1974
Asked about their previous tourism projection as compared to the current numbers, Malaysian Association of Hotels (MAH) vice president Khoo Boo Lim said that the numbers are like a fantasy dream now. — The Vibes pic, November 12, 2020

by Rachel Yeoh

GEORGE TOWN — Hoteliers in Penang are on track to record their worst ever average occupancy rates in four decades following the re-imposition of the conditional movement control order (CMCO) and the lack of incentives for the tourism sector under Budget 2021.

Malaysian Association of Hotels (MAH) vice president Khoo Boo Lim captured the frustration out there, saying that it was demoralising to continue touching on the growing complaints that the association has been receiving.

Just as hoteliers are reshuffling and adjusting their businesses to suit the times, the CMCO in all but three states in Peninsula Malaysia cripples the industry again.

Asked about their previous tourism projection as compared to the current numbers, Khoo said that the numbers are like a fantasy dream now.

“It's a total disaster for the hotel industry for 2020. I don't have the figures now and I don't even dare to look at the figures. It may give me a heart attack.”

It is believed that the MAH is on track to record its worst-ever average occupancy rate of less than 30% since the association was formed in 1974.

Khoo was also unhappy with Budget 2021 that was presented in Parliament.

“There are no ideas from the government on what it should be doing to help and prepare for next year. We must be planning to fight with our neighbouring countries when the market opens back up with the anticipation of the vaccine. 

“People will start to travel and if our country has not done anything to pull them over then we will lose out. The present government only wants to protect themselves and is not interested in helping the people and the country.

“I’m sure many industries are suffering just as well but I don't really see anything in the budget that has any significant ideas or strategies.

“Hotels can just pray for a miracle to happen," - The Vibes, November 12, 2020.

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