KUALA LUMPUR: Yong Tai Bhd (YTB) is expected to benefit from the strengthening relationship between Malaysia and China, as the influx of business tourists will contribute to the rising demand for hotel accommodations.
Chinese companies increasingly invest in Malaysian infrastructure, manufacturing, and technology sectors, there is also an increasing number of business travellers visiting Malaysia.
And companies, particularly those offering amenities and services tailored to the needs of corporate travellers, will likely benefit from the growing trend.
"Ultimately, the Courtyard by Marriott Melaka will play an instrumental role in tapping into the pent-up demand for travel, benefiting both YTB and Malaysia's tourism sector," YTB said in a statement.
Moreover, the opening of the Courtyard by Marriott Melaka, owned by YTB, marks a significant milestone for the company, as it is positioned to accommodate the predicted surge in demand for accommodation and hospitality services due to the pent-up demand for travel following months of travel restrictions.
The hotel is expected to generate a consistent recurring revenue stream for the company as travellers return to Melaka.
On earnings, YTB returned to profitability in the first quarter (Q1) of its financial year ending on June 30, 2023 (FY23), demonstrating the company's resilience and ability to navigate the challenges of the Covid-19 pandemic.
Through various initiatives in revitalising its business, YTB reported a net profit of RM3.4 million in the first half (1H) of FY23, compared to RM22.0 million in the same period the previous year.
The company's recovery highlights its commitment to progressively delivering its projects and has established a foundation for long-term success and stability.
Chief executive officer and executive director Datuk Wira Boo Kuang Loon previously said that the company would continue to work with various local and international show producers on events or shows at Encore Melaka, which could boost earnings through rental income and potential ancillary income from merchandise sales, accommodation and broadcasting revenue.
He added that the company would collaborate with other parties in delivering art and technology exhibitions at Encore Melaka to maximise the utilisation of its theatre.