Half the year has gone. The inoculation rate could be better. The objective is to reach 80%, and we are at 7.3% as of July 1, an improvement from 5.8% a week earlier. There are states with first doses administered above 40% of its population – Sarawak and Kuala Lumpur. More needs to be done.
Meanwhile, the hotel industry (and others) must push back recovery plans further – now into 2022. Average occupancy forecasted for 2022 is 35% - that is another year of losses. Many hotels have closed temporarily or permanently – at least 120. Many employees are on “no pay” or “reduced pay” basis.
For 2021, Malaysian Association of Hotels (“MAH”) expects occupancy rates to improve from 14% in June to 28% by end 2021. The average daily rate (ADR) for 2021 is expected to be in the RM180-RM190 range, a drop of 20-30% from pre-pandemic levels. A domestic driven recovery could happen in 2022. Foreign tourists may take a little longer because of vaccination and protocols involved.
For the U.S., PwC anticipates improvements with increasing vaccinations and consumer optimism. In 2022, most hotels may reach 75-85% of pre-pandemic levels. Unemployment will improve substantially from 13.8% in April 2021. Occupancy level of 57.2% and daily rates up by 8% by year end.
For Malaysia, the Ministry of Tourism has come really short. It has allowed so-called market forces and incipient politics to take hold. So, recovery will take longer because there was no strategic or sector plan for tourism that may have helped owners, employees and other stakeholders to batten-down the hatches and prepare for a recovery in due course. It’s still not too late to work with hotel operators, tour agents and other stakeholders on a recovery plan.
Source: www.thestar.com.my
Reference:
Towards a better 2022, Eugene Mahalingam, The Star, 3 July 2021
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