A SURVEY of 324 Malaysian hotels has found that about half of them will close, either permanently or temporarily, because of the Covid-19 pandemic, a hoteliers’ group said.

The Malaysian Association of Hotels (MAH) said its survey last month shows a worrying trend of hotels closing shop based on projections that low occupancy rates will continue to plague them for the rest of the year – and even beyond – until a vaccine is found.

“The survey we conducted on April 16 showed a worrying trend, where 15% of hotels said they intended to close permanently, while another 35% will close temporarily,” said MAH chief Yap Lip Seng.

“The majority of the temporary closures are until the end of the conditional movement-control order (CMCO) while others will be up till December 2020, or until a vaccine is found.”

The survey, said Yap, shows that expected occupancy for the rest of the year is estimated to be around 10% to 30% for all areas.

In terms of overall national occupancy, just 25.41% for 2020 is projected. 

The highest drops are expected in Langkawi, Selangor, Johor, Pahang and Sabah.

Yap said the survivability of hotels depended on their available reserves.

“We foresee major owners and brands consolidating their properties, while local brands are likely to close permanently.”

Those with the resources are looking into technology that can be used in operations to minimise human contact and exposure. 

Yap said hotels will also improve periodic cleaning and sanitisation of contact points.

“At the industry level, MAH has planned a Clean & Safe Malaysia campaign, where hotels that fulfil a set of requirements will be certified ‘clean & safe’ and endorsed by the relevant authorities.”

This is one way industry players seek to revive traveller confidence, as tourism will continue even if Covid-19 becomes an endemic disease, although demands won’t reach the levels as before the outbreak.

“We see hotels as the best option, not only for leisure but also business travellers, even post-Covid-19.

“So, hotels (need to be) equipped with SOP and policies to protect guests and the public, regardless of Covid-19 or any other disease or safety concerns,” Yap said.

These measures are necessary going forward as Asia is one of the biggest tourism markets, he said.

A “reasonable” recovery period for the hotel industry is estimated to be by the middle of next year, Yap said.

At best, the occupancy rate for Malaysia will reach about 32% in December 2020.

The budget hotel sector has also been hard hit, with only around 30% out of 2,300 operators choosing to remain open, according to Malaysia Budget Hotel Association (MyBHA) president Emmy Suraya Hussein.

“As of the end of April, the budget hotel sector has lost around RM75 million due to cancellations,” she said.

Recovery will be slow for budget hotels and the association will be appealing to the government for further economic stimuli, Emmy added.

“Tourism is the first to get hit and the last to recover. We hope there will be something in the recovery plan,” she said, referring to the economic recovery plan the International Trade and Industry Ministry is due to announce at the end of this month. – May 18, 2020.