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Hotel occupancy rate to reach 60 per cent in third quarter

KUALA LUMPUR: Hotel occupancy rates nationwide are expected to increase 60 per cent during the third quarter of this year following the reopening of the country's borders.

Malaysia Association of Hotels (MAH) chief executive officer Yap Lip Seng attributes the increase in the occupancy rates to international tourists, including those from Singapore, following the resumption of cross-border movements between the two neighbouring nations.

Since January this year, he said the occupancy rate stood between 30 and 40 per cent, mainly contributed by domestic travellers, besides booking from locals planning getaways during holidays and festive celebrations.

"We hope there will be more tourists arriving in the country following the reopening of the borders, which will help the tourism and hospitality industry to recover after being severely affected by economic impact from the Covid-19 pandemic.

"We are upbeat that the industry is now on the right path to recovery, with the possibility of the hotel occupancy rate increasing to 60 per cent during the third quarter of this year," he said.

After two years of battling Covid-19, Malaysia last Friday reopened its borders which also coincided with the nation entering the endemic transition phase.

The reopening of the country's borders also saw Malaysians stranded abroad, including in Singapore, returning home, reuniting with their loved ones.

Yap added that occupancy rates of hotels nationwide will not increase immediately. This was because of Ramadan followed by Hari Raya Aidilfitri and other factors including locals who are taking this opportunity to travel abroad.

"We will ensure all operators comply with all the standard operating procedures (SOP) introduced by the government.

"Also there is still time for industry players to intensify promotions to get more tourists to come into the country.

"The industry extremely needs aggressive campaigns to promote Malaysia as a preferred tourist destination," he said.

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