PETALING JAYA: An association representing budget hotels has urged the government to resolve problems affecting the industry before asking more hoteliers to join the Rahmah initiative which sees products and services offered at lower prices.
“What we want is for them to settle our problems first, then we can be more profitable and channel money towards the Rahmah initiative,” said Malaysian Budget and Business Hotels Association president Sri Ganesh Michiel.
Ganesh, whose association represents more than 2,000 hotels, said industry players were willing to support the government’s initiatives so long as there was mutual benefit.
“If they fail to settle the longstanding threats to the industry, don’t expect us to fork out more money,” Ganesh told FMT.
He said the repeated pleas by hotel owners and operators to the government to regulate short-term residential accommodation and online travel agencies had gone unanswered.
Last Thursday, domestic trade and cost of living minister Salahuddin Ayub said he wanted more hotels to take part in the Rahmah initiative to boost the domestic tourism industry. There are currently two hotels taking part in the initiative, including one in East Malaysia.
Malaysian Association of Hotel Owners executive director Shaharuddin M Saaid said as much as hotels would like to support the initiative, the industry still had not recovered to its pre-pandemic levels.
He cited higher operational costs, due to the 35% increase in the minimum wage from RM1,200 to RM1,500, compounded by the rise in electricity tariffs.
“How would hotels sustain business in this environment? It is unthinkable for them to further reduce room rates in light of the increase in operational costs,” he said.
The pandemic and the subsequent lockdowns saw hotels suffering millions in losses with a number of establishments, including five-star hotels, closing for good. - FMT
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