DESPITE economic headwinds, the tourism sector is proving to be quite resilient.
Tourist arrivals rose 3.7 per cent from 19.4 million to 20.1 million between January and September, compared with the same period last year.
Domestic tourism, in particular, recorded growth in several states, hinting that the 10.9 per cent increase in domestic tourists recorded last year will likely continue this year.
The Malaysian Association of Hotels said although overall tourist arrivals had increased, hotel occupancy rate was at 60.8 per cent, down from 65.51 per cent in 2018.
Its chief executive officer, Yap Lip Seng, said this was due to the prudent spending of most Malaysians and the rise in room inventory in the country.
“Spending pattern for Malaysians has changed. While many avoid international travel due to the weak ringgit and other economic pressures, domestic travellers have turned to prudent spending.
“On top of this, Airbnb has become a popular choice for discerning travellers due to affordable price ranges,” he said, adding that there were currently 53,000 homestays registered under the platform.
“Another factor is also the increase in room inventory.
“We are still seeing an increase of hotels, especially in major cities, but the demand is stagnant or has even gone down, this had diluted business for everyone,” he said.
He said hotel occupancy in the capital and Melaka during school holidays had shown a slight increase during the long school holiday period, compared with the same period last year.
He said the occupancy rate had dropped in Penang, Johor and Kota Kinabalu.
“Overall, the occupancy rate in Kuala Lumpur has increased
at about five per cent, with one
to two per cent in Melaka, predominantly from domestic travellers.
He said hotel occupancy rate in Johor, Penang and Kota Kinabalu had each declined between five to 10 per cent during the holiday season.
“Langkawi, which is another popular market segment, is also recording a lower occupancy rate that is lower than the previous year.
“We expect the hotel occupancy rate to pick up in the last
two weeks of December for Christmas and New Year celebration. That’s a normal trend,” he told the New Straits Times yesterday.
Yap believed that domestic travellers had opted for a cheaper accommodation via Airbnb platform.
“People also believe that Penang hotel stays are getting more expensive for domestic travellers, while Johor had become highly dependent on Singaporean market, which pushed domestic travellers away.
“Compounding the low occupancy rate was the fact that travelers now choose to go to other travel destinations in Asia including Vietnam, Cambodia and so on.
He said while domestic tourist numbers to Kota Kinabalu was encouraging, the hotel occupancy rate had slowed down due to competitions from Airbnb.
In July, Prime Minister Tun
Dr Mahathir Mohamad said domestic tourism was a key contributor to the economy, with domestic tourism expenditure registering a growth of 11.7 per cent with RM60.4 billion last year.
“While much effort is being done to attract foreign visitors, do not ignore our domestic tourism as it is a key contributor to the economy,” he was reported as saying.
Dr Mahathir reiterated that tourism was an important sector to ensure the growth of the economic and services sector.