KUCHING: The hotel occupancy rate in Sarawak has dropped by 3.75 per cent last year as compared to 2017.
Malaysian Association of Hotels (MAH) Sarawak Chapter chairman Mohd Ibrahim Nordin said last year, the hotel average occupancy rate (AOR) recorded at 50.3 per cent, as compared in 2017 it was recorded at 53.78 per cent.
“While average room rate (ARR) had an increased by RM6.36 in 2018 as compared in 2017,” he told New Sarawak Tribune, today.
He mentioned last year the ARR was price at RM154.66, while in 2017 it was RM148.40.
“The reason of the drop in occupancy rate was due to drop in tourist arrivals which registered 4.4 million last year and did not meet the target of 5 million,” he said.
He stressed another reason was due to strong competition from unlicensed accommodations provider in Sarawak.
“The number of unregistered accommodation is increasing and it is a worrying matter, as it is affecting the industry.
“These include unregistered Airbnb, lodging house, illegal accommodation where houses are turn into hotels, and homestay operating as lodging houses,” he pointed out.
However, he said with this year’s Visit Sarawak Campaign, more tourists arrivals are expected, and of course the hotel occupancy rate is expected to increase.
“As for the month of January and February, the number of visitor arrivals had showed an increased as compared to last year on the same period,” he said.
On another issue raised during the meeting regarding the hotel room rates, Ibrahim said there have been complaints and comments from owners and operators on standardising on room rates based on Star Rating.
“We discussed the issues and taken into consideration the sensitiveness, market demand and current developments as we had previously shared business trends and agreed on minimum or maximum rates according to Star Rating.
“Instead the mutual agreements do not hold long as we are facing severe problem of survival as the markets are too soft,” he said.
However, MAH said it has no control or empowered to instruct its members, but the association encourages members to hold and increase rates to the benefits of the industry.
