KUALA LUMPUR: The Chinese New Year celebration appears subdued as most consumers shy away from extravagant spending.
While the festival has always been a boon time for players in the retail and hospitality industries with consumers flooding shopping complexes and retail shops and booking hotels for reunion dinners, it’s quieter this time around.
Malaysian Association of Hotels (MAH) Johor Chapter marketing communications consultant and secretary Yvonne Loh said consumers were more prudent as reflected by the low number of bookings for reunion dinners this year.
“Normally, people will book three to four weeks ahead of Chinese New Year. Many hotels complain of poor business. It’s not a good sign. It looks like families are mindful of their spending for CNY this year.
“Not only are hotels feeling the pinch, shopping centres, too, are quieter compared with previous years,” she told the New Straits Times.
Loh said the increase in prices of goods could be one factor.
“Reunion dinners, for example, can be expensive. A table of 10 persons normally starts at RM500.
“It can be costlier as the prices of ingredients such as abalone, oyster and salmon have gone up due to seasonal factors. Suppliers hike the prices to take advantage of the once-in-a-year festive affair.”
MAH Johor Chapter committee member Michael Bay said many Singaporeans and Malaysians working in the nation-state did their festive shopping and preparations in Johor Baru to take advantage of the weakened ringgit.
“Nevertheless, hotel occupancy remains an issue as the industry has to contend with the rise in unregulated short-term accommodations like Airbnb.”
Bay said hotels in Johor Baru were struggling to compete with operators of the food and beverage industry, especially during the festive season.
“There seems to be a drop in the number of in-house dining patrons.”
Bay said hotels need to focus on factors, including pricing, food varieties, taste, presentation and quality, to attract customers to their restaurants.
Puteri Pacific Johor Baru and Persada Johor International Convention Centre marketing manager Lily Othman said hotels in the city were facing stiff competition from restaurants and hipster cafes in terms of bookings for CNY reunion dinners and get-togethers.
“Consumers are not spending less, but they have more options now.
“For this year, we have maintained our buffet prices. Apart from family reunion dinners, we also cater to corporate functions and group bookings.”