KUALA LUMPUR: Hotels room rates in Malaysia are competitive and affordable in general, even when compared with countries in the region.
Tan Wee Tiam, head of research and investment services at KGV International Property Consultants, said many hotels in Asia and the Pacific are priced in US dollars.
"We are not surprised that their room rates during peak seasons may be higher than those of Malaysian hotels," he told Business Times.
Tan said room rates can vary depending on the season, location and brand of the hotel.
A four-star hotel in central Singapore will easily cost S$350 to S$400 per room night (about RM1,200 to RM1,360). That will cost RM500 to RM800 per room night in Thailand and RM400 to RM600 per room night in Kuala Lumpur.
"Hotels in Singapore, in general, are unquestionably the most expensive in this region, owing to its strong currency and high occupancy rates, particularly post-Covid 19.
"In Thailand, it is determined by the location of the hotels. Hotels in popular tourist destinations in Thailand are not cheap when compared to those located in hot spots in Malaysia," Tan said.
He said Singapore has been very proactive and aggressive in promoting itself as a MICE and modern cosmopolitan destination with a variety of exciting events and activities, while Thailand has marketed itself as a welcoming country known for its resorts, beaches, food, and shopping in the region.
"All of this is imprinted in the minds of tourists and continues to attract would-be visitors," he said.
When asked what hoteliers in Malaysia can do to encourage more people to stay, Tan said it will not be right to place the burden of attracting more people to stay solely on the hoteliers. It is the whole package or value proposition a country can offer to its visitors and tourists.
He said Malaysia should do more to promote MICE, medical tourism, nature adventure, culture, food and shopping.
Malaysian hoteliers should work with the authorities and other industry players to provide a better value proposition to visitors and tourists.
In addition, hoteliers should keep exploring new themes in terms of concept, services, facilities, and decoration to keep up with the global trend without being left behind.
"The industry is already seeing an evolution after the negative effects of the last few years. Hotels will have to improve their range of services in order to attract more clients. Their points of differentiation will make them stand out from the crowd. Already, some hotels have taken the time off to refurbish and are ready for a new era," he said.
Previn Singhe, founder and group chief executive officer of Zerin Properties Group, said while it is true that certain hotels in Thailand may appear to offer better rates and service than some hotels in Malaysia, it is important to recognise that each country's hospitality landscape is unique.
"There are exceptional hotels in Malaysia that provide world-class service and value to their guests. It is crucial to focus on enhancing Malaysia's competitiveness rather than making direct comparisons.
"While Malaysia offers competitive prices in the Asia Pacific region, it is important to note that affordability is subjective and dependent on various factors such as location, hotel category, and market demand.
"On apple-to-apple comparison, we are on par with prices in Vietnam or the Philippines. However, Malaysia's diverse range of accommodations caters to different budgets, making it an attractive destination for travellers seeking affordable options," he said.
He said to encourage more people to stay, hoteliers in Malaysia can focus on several strategies, such as maintaining and enhancing the quality of service and amenities provided.
Previn said another crucial aspect is understanding and meeting the needs and preferences of their target markets, whether they're business travellers, families, or leisure tourists.
"But let's also not forget about making Malaysia more accessible. MAHB has to encourage more airlines to fly into KLIA and our other international airports. It is a shame that Langkawi does not have the reach and access to airports like Bali and Phuket, which have direct flights from India, China and Japan, to name a few," he said.