Trending
business

Avillion expects 80-90pc weekend occupancy rate once interstate travel allowed

KUALA LUMPUR: Avillion Bhd hopes to achieve an occupancy rate of at least 40 per cent on weekdays and between 80-90 per cent on weekends and public holidays for its resorts in Port Dickson, Pulau Pangkor, and Cameron Highlands.

The projection is based on the assumption that the government will relax the restrictions on interstate travel for fully vaccinated domestic travellers.

"Avillion hotels are anticipating a surge in domestic travel demand once the announcement of the interstate restriction is lifted.

"At the moment, all Avillion hotels are preparing to welcome domestic travellers in a safer environment," group director of sales and marketing Michael Chiew said when contacted by The New Straits Times.

He said once the government loosens the restrictions on interstate and border travel, the company will generate more revenue from domestic and international markets.

"Additionally, we will be focusing heavily on local meeting groups also leisure incentives," he said.

Avillion's revenue saw a 68 per cent drop due to poor performances in the first, second and fourth quarters for the financial year ended 31 March 2021 (FY21), according to the company's annual report filed to Bursa Malaysia.

The company's travel sector experienced the most significant revenue decline, with a 97 per cent decrease in revenue for FY21, while the property and hotel sectors experienced revenue declines of more than 58 per cent.

As a result, Avillion suffered an operating loss of RM0.38 million in FY21 compared to an operating gain of RM6.68 million in FY20.

However, the company's loss before taxation narrowed by 31 per cent to RM15.60 million in FY21 from RM22.52 million in the previous financial year.

Further, the report also mentioned that the numbers would have been even worse if not for a brief spark in the third quarter when the government partially lifted travel restrictions.

"With the vaccination program and opening of major industries, coupled with relaxation of standard operating procedures (SOP) and the country achieving a higher percentage of vaccination rate, we look forward to more stable government policies, rebuilding of business segments and increasing in consumer spending," Michael said.

In preparation for the post-pandemic period, Avillion will continue with asset enhancement and refurbishment programmes for some of its hotels and resorts and generate new revenue streams by adding more hotels to the company's stable of managed hotels and other income-generating ventures.

"We have allocated funds for upgrading works in specific properties, but due to the Movement Control Order (MCO 3.0), we have temporarily ceased all projects.

"We hope to revive these said projects once the movement control opens up entirely," he said.

Most Popular
Related Article
Says Stories