Hotel Industry in Malaysia

Topics: Resort, Hotel, Tourism Pages: 6 (1646 words) Published: May 9, 2013
Market Study of Hotel and Resort Sector in Malaysia
Malaysia’s hospitality industry is experiencing healthy growth in hotel openings and hospitality-related services through the steady flow of business travelers, tourists and popularity as a MICE (Meeting, Incentives, Conventions, Exhibitions) venue. Malaysia’s advantage in this sector lies in good value in terms of costs compared to the rest of the region, its diversity of natural attractions such as beaches and mountains as well as solid infrastructure and amenities.

Table 1
Table 1 shows the supply trend of 3-5 star hotels and hotel rooms from 2011 to 2012. In terms of the number of rooms, Malaysia showed an increase of 1.1% from 193,340 rooms in 2011 to 195,445 rooms in 2012. In terms of total supply of number of hotels, there was an increase of 17 units of hotels in 2012 which is 0.6% higher from 2011. Demand for hotels and resorts in Malaysia are basicly from tourists including domestic and international. Tourism industry play a key role in the pace of hotel development in Malaysia. Malaysia's hotel market maintained a reasonable performance with steady improvements in the tourism industry. Tourism industry in Malaysia continued to perform well on the back of an increasing number of promotional activities and Malaysia’s growing reputation as a dynamic and competitive shopping hub and host for global sporting events (such as Le Tour de Langkawi, F1 Grand Prix, PGA and LPGA Tours, ATP World Tour, EPL pre-season tours) and business/conference events. Malaysia will remain well positioned to retain its ranking among the global top 10 tourist arrivals and top 15 tourist receipts.

Table 2
Table 2 shows the number of Malaysia’s Tourist Arrival in 2011 and 2012. Generally, the total tourist arrivals to Malaysia were increasing annually. Malaysia’s number of tourists showed a tremendous increase of 318,384 from 2011 to 2012 which is 1.3%.

Table 3
Table 3 shows the average occupancy rate of hotels in Malaysia with steady increase and as of 2012 it stands at 62.4% which is 1.8% difference from 2011. Malaysian hotel sector is also displaying promising growth with a steady rise in hotel prices. According to Hotel Price Index (HPI), the average price paid for hotel room night in Malaysia during 2012 is RM368. The figure represents a 3% increase over 2011. All in all, Government’s policy in promoting Malaysia’s tourism and hospitality sector is going as planned, enough to be able to attract foreign investors to invest in hotel/industry sector.

Market Study of Hotel and Resort Sector in Johor
Johor's transformation into the amusement and theme park capital of Malaysia calls for extra stream of hotels. With Johor Premium Outlet and Legoland are already opened, followed by Hello Kitty Town, Little Big Club and LAT theme parks, Johor hoping to capture sizeable share of the projected number of visitors (estimated additional 5.4 million annually) to be attracted by these tourist destinations. Before Iskandar Malaysia became a family destination, average occupancy rate for hotel in Johor was only at 59% and the average room rate were was hardly grew. The transformation of Johor started to see hotels and resorts to fill more rooms. Over the next two years, hotels in Johor are expected to enjoy healthy levels of growth both in average occupancy rate and average room rate as even more hotels open. Malaysian Association of Hotels (MAH) Johor Chapter stated that in 2013, the average occupancy rate will be 70%, which is 10% growth over 2012. Average room rate, meanwhile, are expected to be RM220 from RM200 in 2012. MAH hopes that the average occupancy rate will expand by 5% over 2013 and another 10% jump in forecast in 2015. Similar 5% and 10% growth of average room rate are anticipated in 2014 and 2015, respectively. In terms of supply, a total of 40 new 3 star – 5 star hotels are scheduled for opening in Johor, with about half of the said number likely to be...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Hotel Industry in Malaysia Essay
  • Sustainability in the Hotel Industry Essay
  • Hotel Industry Essay
  • Hotel Industry Essay
  • Hotel Industry Essay
  • Hotel Industry Essay
  • Pestel: Hotel Industry Essay
  • Tourism Industry of Malaysia Essay

Become a StudyMode Member

Sign Up - It's Free