Malay hotels suffer badly in Sars scare
The Sars scare cost members of the Malaysian Association of Hotels (MAH) M$185m (£29.5m) in lost revenues in April and May.
The association's 307 members represent 20% of the country's 1,500 hotels. MAH vice-president Ivo Nekvapil said occupancies had averaged 42% in April (against 65% a year before) and were expected to deteriorate to 38-39% in May.
Among five-star hotels, May occupancies have ranged from 21% at worst to 59% at best.
Nekvapil did anticipate a slight improvement in occupancy figures to 42% in June and 45-46% in July.
A call last month for government associations to boost the industry by holding more events in hotels had helped substantially, he added.
Hotels have already cut rates to woo guests, and Nekvapil expects rates to drop by a further 15-25% among five-star properties and by 15-20% among three- and four-star hotels.
Measures taken by member hotels to control costs - which are likely to continue for at least another three to six months - include making senior managers take one week of unpaid leave each month, and cutting electricity bills by 10%.
