KUALA LUMPUR: Tourism Malaysia plans to promote off-peak travel to cushion the blow to hotels hit by government cost-cutting measures.

Director-general Datuk Mirza Mohd Taiyab said more than 2,000 government events at 470 hotels around the country had been cancelled as a result of the belt tightening because of the rise in oil prices.

According to hospitality industry sources, this will cost them RM100 million.

Mirza said the hotels could cope for the next three months because of the Middle East tourist traffic.

"Most of the three-, four- and five-star hotels are fully booked for the next three months. It's the off-peak season we need to concentrate on."
Mirza said the MICE (meetings, incentives, conferences and exhibitions) market would be affected by the cost-cutting measures, and most hotels depended on this revenue during the off-peak season.

The Tourism Ministry is looking at holiday and accommodation packages and discounted room rates to increase occupancy.

"The ministry may recommend a special electricity tariff and the abolishing of the five per cent service charge.

"We will also ask the cabinet to review the decision on holding events at hotels.

"Perhaps the public sector can continue holding such events but at discounted rates to cut down on expenditure," he said after launching the 3rd Malaysia International Dive Expo (MIDE) yesterday.

MIDE is aimed at promoting Malaysia as a top diving destination through offers of great dive deals and value-for-money diving packages.

The exposition this year aims to teach children water sports and educate non-divers about the marine environment and its conservation.

More than 15,000 visitors are expected at the exhibition, which is being held at the Putra World Trade Centre.

The exhibition closes tomorrow. Diving packages worth over RM25,000 and other prizes are up for grabs.