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KUALA LUMPUR – The proposal for hotel room rates in Malaysia to be charged in US currency will be able to reduce price competition between budget hotels and four- and five-star hotels, said some hoteliers.
Malaysian Budget and Business Hotel Association president Sri Ganesh Michiel said the proposal would also indirectly enhance the country’s hotel industry’s reputation in the eyes of foreign tourists.
“We, as budget hotel operators, agree with the statement by the Malaysian Hotel Association (MAH) because it will automatically reduce the ‘price war’ between budget hotels and four- and five-star hotels.
“Right now, we have to compete with these hotels because the price is more or less the same. We cannot increase the price because if it is increased, tourists will prefer to stay in those hotels,” he said.
Sri Ganesh was commenting on MAH secretary-general Datuk Megat Shahrul Azman Abas’s statement on the association’s intention to charge room rates in US dollars like other countries in the region, as reported by the media yesterday.
To realise this, Sri Ganesh suggested that the government implement a two-price system for hotel accommodation to differentiate payment rates between Malaysians and foreign tourists.
Sri Ganesh said the mechanism, if implemented, would help the country’s hotel sector to remain competitive with regional countries, as well as help generate income for them.
“The government should take the initiative to resolve the threats facing the hotel industry, such as formulating a law to regulate online travel agencies and enforce the Short Term Residential Accommodation guidelines to ensure the survival of the hotel industry,” he said.
Among the actions that the government should take, he said, was to create a mechanism or a system such as an online travel portal that is dedicated only for Malaysians for matters such as hotel reservations at special rates.
“When we have our own portals that are regulated by the government and the law, we can get more accurate statistics compared to relying on foreign portals,” he added.
Sri Ganesh said a similar mechanism had been used by foreign countries, like China, which created two different travel portals – one for domestic tourists and another for foreign ones.
“In China, there is the Ctrip, which can only be used by their people. For foreign tourists, they have to use Trip.com. The price between these two portals is very different,” he said.
Meanwhile, Malaysian Hotel Owners Association executive director Shaharuddin M. Saaid said the proposal by MAH would increase the confidence of foreign tourists in the hotel industry in Malaysia, as well as increase the income of hotel operators.
“The price of hotel rooms in Malaysia for four- and five-star hotels in ringgit is too low if converted to the US dollar. For the same class of hotel rooms in New York or Singapore, the price is at least US$400. In Malaysia, it is less than US$100. It does not reflect the status of a five-star hotel.
“So, we have to adjust the price so that it reflects that the hotel is of five-star quality, on par with five-star hotels abroad,” he said.
Shaharuddin said the increased in income for hotel operators would also benefit hotel workers and this would indirectly help to improve the quality of their service.
“If we can get a higher income, we will be able to offer better salaries to employees and also provide the necessary training to improve the quality of services,” he said.
Homestay operator, Mastura Malak, 32 gave a similar view on the proposal by MAH, saying that it would attract more foreign tourists, while expressing hope that hotel operators would not take advantage by raising the price, including for local tourists.
“With the uncertain economy, it would be better if the current price is maintained. There is no need to raise the price suddenly,” said the woman who runs homestays in Temerloh and Desaru. – Bernama, July 13, 2022