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High head count, low occupancy

THE MyTourismData Portal of the Tourism Malaysia website under Hotel Survey showed there were 4,799 hotels and 304,721 rooms in the country last year.

The average occupancy rate (AOR) for all hotels was 67.1 per cent but in the Key Tourism Indicators last year, it was 61.9 per cent. The 5.2 per cent variance in AOR is critical as it makes a big difference between profit and loss for most hotels.

Interestingly, the number of foreign guests who stayed at hotels in Kuala Lumpur last year numbered 9,341,801. Locals numbered 6,552,354.

Based on 5.5 nights as the average length of stay for foreign guests, they would be occupying 38,534,930 rooms in the city based on 1.5 guests per room.

The average length of stay for domestic tourists was 2.3 nights, according to the Statistics Department. Based on 1.5 guests per room, they would occupy 11,302,810 room nights.

Combined, foreign and domestic travellers occupied 49,837,740 room nights in Kuala Lumpur. If so, the national figures do not make sense.

The 304,721 rooms in the country meant that 68,847,139 room nights were occupied last year if the AOR was 61.9 per cent or 74,630,743 room nights if the AOR was 67.1 per cent. Both numbers are close to the Kuala Lumpur figures when they should be several times more, as many tourists also visited other cities in the country.

Last year, Malaysia received 25,721,251 foreign visitors and if all of them stayed overnight, they would have occupied 106,100,160 room nights. We also had 62.7 million domestic tourists and if all of them stayed at hotels, they would have occupied 108,157,500 room nights.

Last year, there was a total of 176.9 million domestic tourists, out of whom 114.2 million were excursionists taking day trips. Combined, foreign visitors and domestic tourists would have required 214,257,660 room nights for stay in hotels or away from home.

As only 68,847,139 room nights were occupied in the 4,799 hotels, many must have stayed at smaller hotels or properties not included in the Tourism Malaysia count, or with relatives or friends, or in their second or own home, as in the case of Singaporeans residing in Johor.

Slightly more than 50 per cent of foreign visitors were Singaporeans last year, and if visitor figures include foreign workers and students, then it is no surprise that hotels suffer from low occupancy despite a high head count of visitors.

Also, many travellers may be taking overnight trips on buses and trains, or bunk down at airports and stations to save costs.

But with the advent of online marketplace and homestay network such as Airbnb, more and more travellers will be staying at cheaper private residences.

In terms of numbers, our tourism must surely be a huge success going by the head count, but the low tourism receipts suggest otherwise.

Services are bound to deteriorate once the saturation point is passed, as capacity is limited. Therefore, we should shift focus by raising services and gear towards higher-end tourists.

As it is, the average rates for hotel occupancy and room charges are low, and so are service standards.

This comes about as many of our best and brightest Malaysians are working overseas while others shun hotel jobs. As a result, many foreign workers have to be brought in to keep our hotels running.

C.Y. Ming, Ampang, Selangor

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