More hotels in Penang may cease operations if MCO, interstate travel ban continues

GEORGE TOWN: The impending closure of Hotel Equatorial Penang is just the tip of the iceberg, with more hotels expected to face similar fates if the interstate travel ban prolongs.

Expressing sadness over news of the impending closure, Malaysian Association of Hotels (MAH) Penang chairman K. Raj Kumar said many hotels were already badly affected by the Covid-19 pandemic, made worse with the interstate travel ban.

He said, while many hotels have opted for temporary closure following the implementation of the second Movement Control Order (MCO), those which remained in business only reported about two to four per cent occupancy rate.

"If this goes on any longer, it is only a matter of time before more hotels cease operations. As it is, many are already finding it extremely difficult to just survive.

"We really hope the government will come to our aid. We, in particular, and the tourism industry, in general, have not been getting anything from the slew of assistance announced by the government, even during the first MCO.

"It is a difficult time for us and I hope both the federal and state governments will look into our plight and come out with some form of incentive for us," he told the New Straits Times Press when asked to comment on the impending closure of Hotel Equatorial Penang.

Adverse business conditions caused by the Covid-19 pandemic were reasons given by the hotel in a memo, sighted by the NSTP, to all employees informing them of the closure.

"This is a very sad and difficult decision. The last day of business to the public has yet to be decided but will be before March 31, 2021," the hotel's general manager Alan H.C. Ong had said in the memo.

The five-star property, located on a hillock in Bukit Jambul near the Penang International Airport, has over 600 guest rooms and suites and adjoins the championship 18-hole Penang Golf Club.

The hotel has, from the time of its opening in the late 1980s, been a favourite of Penang and international industrialists, owing to its proximity to the Bayan Lepas Free Industrial Zone and airport.

Raj Kumar said, while MAH Penang has yet to be officially informed of the matter, employees at the hotel did indicate that it will happen.

"All hoteliers feel that this is a very sad piece of news as Hotel Equatorial Penang has always been the market leader in Penang. There are many memories (associated with) the hotel.

"We really hope the hotel will not cease operations and will find a way to sustain and weather this pandemic. We really hope it will continue to operate," he added.