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Hotel Industry Projects Better Year Ahead, But Challenges Remain
By Vasantha Ganesan / The Edge Malaysia Malaysia’s hotel industry has not recovered to levels achieved prior to the Covid-19 pandemic, both in terms of average occupancy rate (AOR) and average daily rate (ADR), as visitors from traditionally strong markets are still lacking in numbers. Nevertheless, Malaysian Association of Hotels (MAH) president Datin Christina Toh believes that things are looking up for the industry.

In Malaysia, there are about 100 private international schools offering the British In 2022, the hotel industry achieved an AOR of 52.4% and an ADR of RM247, slightly lower than in 2019 — prior to the pandemic — which recorded 54.1% (AOR) and RM258 (ADR), data shared by MAH reveals.

“The industry is well on the road to recovery from the pandemic as seen from the trend of the performance metrics,” Toh tells The Edge.
“The average performance in January to May 2023 was 49.7% in terms of AOR and RM283 in ADR,” she says, representing growth of 12.4% and 20.6% respectively compared to the same period in 2022.

As a result, the first five months of the year saw the industry’s room revenue rise by a healthy 38% compared to the corresponding period of 2022.

“If this trend continues, room revenue for 2023 is expected to exceed RM20 billion,” Toh says, against last year’s RM15.7 billion.

While growth in 2022 was predominantly supported by domestic travellers, Toh observes that the industry saw an uptick in international arrivals in the fourth quarter of 2022.

“In 2022, [tourists from] Singapore and Indonesia remained the top arrivals. Arrivals from our previous staple China, India and Thailand are still far from the pre-pandemic levels,” she observes.

The top five locations that experienced the quickest recovery in AOR in 2022 versus 2021 were Kedah, Perak, Penang, Kuala Lumpur and Melaka while Sarawak, Labuan and Putrajaya were lagging. In terms of ADR, the top performing states were Johor, Selangor, Perak, Melaka and Penang while Pahang, Labuan and Kedah trailed behind.

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