Tuesday, November 18, 2008

Hotel occupancy rates may stay firm till early 2009

Advanced hotel bookings in the country so far indicate that occupancy rates are likely to stay firm until the first quarter next year, but beyond that, the outlook is cautious, according to the Malaysian Association of Hotel Owners (MAHO).

MAHO president Low Gee Tat told StarBiz that occupancy rates had fallen during the Ramadhan month and there was evidence of slower take-up rates in October.

“But in the last quarter of the year, we should do all right and this will extend until first quarter of 2009,” he said, pointing out that people normally planned ahead of their travel.

“There is a cautionary mood of what’s after that. We’ll be happy if occupancy rates in the second half of 2009 stay the same as this year.” he said.

Low Gee Tat

Occupancy rates at city hotels are more consistent than the ones at resorts as resorts are affected by seasonal factors.

For example, visitations to beach resorts drop during the monsoon season.

Resorts, which tend to have more international travellers, are also affected by the holiday season in Europe or Japan.

Up to 80% of arrivals in Malaysia are regional tourists from Asean countries and China while the remainder come from the US, Europe, Australia and the Middle East.

Low said this trend was likely to continue in the next one to two years, especially since Asean countries were liberalising travel policy.

“Given the global economic outlook, we’ll have to drum up regional and domestic travel to compensate for any shortfall in international arrivals,” he said.

Low reckoned that an economic slowdown would prompt tourists to opt for more affordable destinations like Malaysia.

“There are hotels (in Malaysia) that suit every budget,” he said, noting that air fares were becoming very affordable thanks to no-frills airlines.

Tourism Malaysia had also done a great job in leading promotions with its Visit Malaysia and Malaysia, Truly Asia campaigns, he said.

But things could improve, Low said, pointing out that parks and gardens, as well as tourist attractions such as butterfly farms and Batu Caves, should be upgraded to attract visitors.

“We do not need to re-invent the wheel but we need to make them more attractive and cleaner for people to enjoy,” he said.

Source : STAR
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Fortune Park Hotels Ltd said...

The people in India, and especially the software industry can take a breather now as the finance minister has confirmed a 7% growth in the Indian economy, at the least. There were high speculations of job cut owing to the downfall of the US economy. However, this assurance from the finance department has put all the fears and apprehensions to rest and have generated renewed business interest in the places like Bangalore. Travel and tourism would also see a hike owing to increased business traveling. People would travel Bangalore further in future. No wonder there is a happy co existence in Bangalore of luxury and business hotels.

Anonymous said...

Going by the latest reports regarding the hotels in Bangalore, the hospitality industry of the city is about to see serious growth and development in the coming times. Bangalore was one of the cities that had seen unprecedented growth and development owing to the boom of the IT sector and before long it became one of the most important IT hubs of not only India but also of the world. As such the number of business travelers to Bangalore also increased and hence important names in the hospitality industry opened up exclusive business hotels in Bangalore. Soon Bangalore became one of the most important commercial hubs of India and hence it saw rapid infrastructural growth and development. However, following the economic slump, not only the IT sector and overall business suffered, but also the hospitality sector received setback. Most obviously the occupancy rates for the budget hotels in Bangalore declined. However, the recent reports predict that India is still the place to be as far as development from all ends in concerned. Business will soon be bustling in India and the hospitality industry has also somewhat overcome the slump and the reports predicting growth have come as a breather.




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