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New Travel Restrictions Make It Impossible for Hotels in Malaysia to Survive

News New countrywide restrictions were implemented in Malaysia starting from 13 January 2021, crippling the local tourism industry. Although hotels can continue their work, the new rules liquidate virtually all revenue sources for them, making it even harder to survive.

Hotels in Kuala Lumpur and other Malaysian cities reopened in June 2020 after a lockdown but the increase in the number of new Covid-19 cases at the beginning of October caused a significant decline in occupancy. In large cities, the occupancy fell to 20% while less popular destinations suffered from even a larger decline. When domestic tourism resumed again in early December, Malaysians were eager to travel, and so the average hotel occupancy peaked at 43% during the holiday season.

However, the government recorded another surge in the number of Covid-19 cases and decided to limit domestic tourism again. To prevent the spread of the diseases, the government plans to keep hotel occupancy below 20%. There is no information on how long the lockdown will be this time. After a poor performance in 2020, hotels in Malaysia started 2021 with losses, and it is getting harder for them to survive. The Malaysian government, in its turn, doesn’t offer any sufficient steps on helping the industry. The 10% discount on electricity from January to March 2021 is the only initiative available at the moment.

There is a wage subsidy program in Malaysia, which is aimed to help the most affected industries during the tough pandemic period. Unfortunately, hotels and the tourism industry in general are not eligible for the improved program. The Malaysian Association of Hotels proposed the government establish a 50% wage subsidy for hotel employees earning up to RM4,000 and a 30% wage subsidy for employees earning up to RM8,000. This would help to save jobs and prevent people from losing their jobs. Regrettably, this proposal was neglected.

As of January 2020, the hotel occupancy in Malaysia fell to 20%. The new rules and massive booking cancellations leave no hope for the Chinese New Year period that is historically one of the busiest times for hotels across Asia. As a result of the new limitations, the Malaysian hotel industry will lose approximately RM600 million in revenues every month.

24.01.2021

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Individual City Guides

Sevastopol
Sevastopol travel guide
The hero city with a rich history started welcoming tourists a few years ago. Sevastopol was founded as the main base of the Russian fleet in 1783. The city has managed to maintain such an important status to this day. In addition, Sevastopol is an attractive tourist center today. The city attracts many travelers with plenty of attractions and incredibly beautiful beaches. On the territory of Sevastopol, there are a lot of preserved architectural monuments, some of which are aged over 200 … Read further
Tartu
Cuisine of Tartu
One of the main gastronomy features of Tartu is local beer. Vacationers can try the best varieties of beer in one of the many pubs, restaurants and bars. A typical Estonian pub is Püssirohukelder; selection of beers and popular national food here is just huge. Despite its status, Püssirohukelder is an attractive place for families with children. The pub has an awesome non-smoking room; its menu has a lot of interesting treats for children. Sweet tooth will love the Pere cake shop, as the … Read further
Istanbul
Traditions and festivals in Istanbul
Residents of Istanbul have several distinct national characteristics. In Istanbul, as well as in any city in the country, the natives have great respect for religious customs and traditions. Women wear closed clothes, the same applies to visitors – people in open clothing may be denied to enter many mosques and public institutions. Istanbul residents value their homes, so they always remove their shoes when they enter a house. This rule applies to mosques, which are also considered the … Read further
Phuket
Phuket cultural sights
Phuket is the biggest island of Thailand known for a number of natural and historical sites. The Thepkasattri district locates a village of sea gipsy being one of the most visited places on the island after scenic beach areas. The village is the best destination for tourists wishing to get to know local residents’ culture and traditions. The village holds different concerts for tourists and offers various ethnic cuisine restaurants and souvenir shops to visit. Travelers will enjoy a rich … Read further
Surabaya
Surabaya attractions and entertainment
Surabaya is very popular among fans of sports entertainment and shopping. The city is perfect for a relaxing stroll. The small Surabaya's Zoo will be interesting for both young travelers and their parents. In addition to numerous cages with the animals, at the zoo you could see a small aquarium, which introduces the diversity of deep sea inhabitants. No less attractive place for families is the Ciputra water park. Small in size, it never ceases to attract many visitors; the park has … Read further
Ayia Napa
Ayia Napa for families and kids
Ayia Napa is famous for its huge selection of discos, bars and other entertainment facilities, oriented to adults. Choosing a comfortable place for recreation with children is not so simple, but, at the same time, possible. The main value of the popular resort is its picturesque beaches, many of which are owners of prestigious environmental awards. The best family beach is Nissi Beach. In the eastern part of this beach are very quiet shallow bays, which are perfect even for a holiday with young … Read further
Zermatt
Shopping in Zermatt
If you want to buy something interesting, it is better to go to the town center. The Bahnhofstrasse will become a reference point for you. All major supermarkets, shopping centers, and just interesting town’s shops are located on this street and next to it. If you decide to buy something from the ski equipment, then focus on local rentals. As a rule, equipment stores are located near them. You shouldn't go shopping on a Sunday. Almost all stores are closed on this day. If you don't have a … Read further
Guadalajara
Extreme and fun in Guadalajara
Descent into the Oblatos Canyon. There is a majestic canyon in Guadalajara. It is called Barranca de Oblatos. The canyon is located in a mountain range. Its depth is 600 meters and its area is 1.137 hectares. The battle between the Mexican and Spanish troops took place in it. The Parque Agua Azul nature reserve is located in the larger Barranca de Oblatos area at present. You will get here on the Tequila Express train. The trip will take about 2 hours. You will be able to descend into the … Read further
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