Weakening ringgit a boon for tourism in Johor, say hoteliers

 

Hoteliers expect the ringgit’s continued decline against the Singapore dollar to bring in more tourists from Singapore. (hotelmix.my pic)

PETALING JAYA: The declining value of the ringgit against the Singapore dollar (SGD) is expected to be a boon for the tourism sector in Johor, hoteliers said.

Jimmy Leong, who chairs the Johor Tourist Guides Association, said he expects more Singaporeans to cross over into Johor as products and services now offer even better value for money than previously.

“This would benefit the various tourism-related businesses, even spilling over to destinations beyond Johor for those taking a day or two to vacation in Malaysia.

“Across the board it does create a tempting desire to just drive or hop across the border and this can easily increase revenues from 5% to 10%,” Leong told FMT.

On June 13, the beleaguered ringgit sank to a new all-time low of RM3.4384 against the Singapore dollar. On June 22, it weakened  further to RM3.4674.

Analysts said the strong US dollar and Singapore dollar on the one hand, and weaker than expected economic data on the other have pummelled much value out of the ringgit.

Leong, who is also the Malaysian Tourist Guides Council president, said only the locally manufactured products market will benefit from the ringgit’s decline, as imported products will become more expensive.

He also said hoteliers and theme park owners who depend on imported technology would need to fork out more money for refurbishment and maintenance works.

Meanwhile, Malaysian Association of Hotels (MAH) Johor chapter chairman Ivan Teo acknowledged that hotel occupancy in the state has seen an increase, but said this was normally the case, especially during long weekends.

Hotel operators, however, have their work cut out for them on weekdays, and resort to organising events such as conventions to keep room occupancy high, he said.

With the ringgit reaching unprecedented lows against the neighbouring republic’s currency, Teo expects hotel occupancies to increase significantly due to an inflow of tourists from Singapore.

“I think it can easily increase another 20%,” he said. - FMT