KUALA LUMPUR (June 8): It comes as no surprise that multiple surveys have shown that for most countries, domestic tourism will recover first before international tourism does. Back home in Malaysia, interstate travel is expected to be relaxed first before our borders are opened to foreigners. States like Penang are already promoting the idea of a “travel bubble” to enable travel between two states declared as green zones.
Which are the states that are likely to be the first to recover?
A recent survey by the Malaysian Association of Hotels (MAH) revealed that hotels in the states of Perak, Pahang, Terengganu and Kelantan are likely to be the fastest to recover. This is because these states rely heavily on the domestic market. Eighty per cent of guests of hotels in Perak are locals, while in Pahang the percentage is 87%, Terengganu 72% and Kelantan 79%.
“Domestic guests command 55% of market share traditionally in Malaysia overall, with the states of Perak, Pahang, Terengganu and Kelantan highly dependent on the domestic market. This could also indicate an earlier recovery for these states once interstate travel is allowed,” MAH chief executive officer (CEO) Yap Lip Seng said in a report titled “Hotel Industry of Malaysia MAH: Moving Forward” dated May 31. The survey results were based on interviews with a total of 402 hotels nationwide.
Yap added that on the other hand, hotels on the tourist island of Langkawi and Sabah are expected to be the last to recover as they are highly dependent on international tourists. Only 34% of hotel guests in Langkawi are locals, while in Sabah the percentage is 40%.
Meanwhile, the average daily rate (ADR) of hotels is expected to decline by 27% in the next six months to a year nationwide. The survey showed that the decline is expected to be steeper in the states of Kelantan (39%), Terengganu (37%), Negeri Sembilan (37%), Sabah (36%) and Langkawi (34%), and lower in Sarawak (15%) and Melaka (17%).
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