Some Malaysian hotels to close permanently as result of the virus crisis


A number of hotels in Malaysia are poised to shut down their operations permanently and some others at least temporarily in the wake of the devastating impact of the coronavirus crisis on the country’s economy and tourism.

This is the result of a survey conducted by the Malaysian Association of Hotels released on April 16 among a sample of 324 hotels, which found that 48 establishments, or almost 15 per cent of the sample, are forced to permanently close their operations.

“From the same survey, 50 per cent of the hotels responded that they are considering ceasing operations and 35 per cent of hoteliers said they would temporary halt their businesses,” said the association’s CEO Yap Lip Seng.

“Some hotel operators said they would remain closed at least till year-end, while some said they would only resume their businesses after a vaccine for Covid-19 is found,” he told New Straits Times.

There are a total of 4,880 hotels in Malaysia registered with the tourism, arts and culture ministry. This would mean, if the survey result are extrapolated, more then 700 hotels would be forced to closed.

Hotel services have been defined as essential services that are allowed to operate during the Malaysia’s lockdown, but they are prohibited from accepting new guests and can only provide services to those who had checked-in before March 18. Food and beverage services are limited to room service only, and all other facilities and services of the hotel remain closed.

Oversupply even before the virus crisis struck

However, Seng said the upcoming closures were also partly owing to the “close to oversupply” market of hotel rooms in the country, with unregulated and uncontrolled homes turned into tourist accommodations through platforms such as Airbnb making things worse.

The hotel shutdowns are expected to begin in the coming weeks after hotels have been faced with another extension of the lockdown period and are running out of financial resources.

There is muted optimism for the time after the lockdown is lifted as remaining hotel operators would be focusing on domestic tourism as good as they can.

“Tourism is not going to be the same [after the pandemic],” Seng said.

“We expect a slow recovery as we will not experience the same volume of tourists anytime soon. We foresee the industry to recover by middle of next year,” he added.



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A number of hotels in Malaysia are poised to shut down their operations permanently and some others at least temporarily in the wake of the devastating impact of the coronavirus crisis on the country’s economy and tourism. This is the result of a survey conducted by the Malaysian Association of Hotels released on April 16 among a sample of 324 hotels, which found that 48 establishments, or almost 15 per cent of the sample, are forced to permanently close their operations. “From the same survey, 50 per cent of the hotels responded that they are considering ceasing operations and 35...


A number of hotels in Malaysia are poised to shut down their operations permanently and some others at least temporarily in the wake of the devastating impact of the coronavirus crisis on the country’s economy and tourism.

This is the result of a survey conducted by the Malaysian Association of Hotels released on April 16 among a sample of 324 hotels, which found that 48 establishments, or almost 15 per cent of the sample, are forced to permanently close their operations.

“From the same survey, 50 per cent of the hotels responded that they are considering ceasing operations and 35 per cent of hoteliers said they would temporary halt their businesses,” said the association’s CEO Yap Lip Seng.

“Some hotel operators said they would remain closed at least till year-end, while some said they would only resume their businesses after a vaccine for Covid-19 is found,” he told New Straits Times.

There are a total of 4,880 hotels in Malaysia registered with the tourism, arts and culture ministry. This would mean, if the survey result are extrapolated, more then 700 hotels would be forced to closed.

Hotel services have been defined as essential services that are allowed to operate during the Malaysia’s lockdown, but they are prohibited from accepting new guests and can only provide services to those who had checked-in before March 18. Food and beverage services are limited to room service only, and all other facilities and services of the hotel remain closed.

Oversupply even before the virus crisis struck

However, Seng said the upcoming closures were also partly owing to the “close to oversupply” market of hotel rooms in the country, with unregulated and uncontrolled homes turned into tourist accommodations through platforms such as Airbnb making things worse.

The hotel shutdowns are expected to begin in the coming weeks after hotels have been faced with another extension of the lockdown period and are running out of financial resources.

There is muted optimism for the time after the lockdown is lifted as remaining hotel operators would be focusing on domestic tourism as good as they can.

“Tourism is not going to be the same [after the pandemic],” Seng said.

“We expect a slow recovery as we will not experience the same volume of tourists anytime soon. We foresee the industry to recover by middle of next year,” he added.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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