In a report last Friday , Malaysian Association of Hotels president Christina Toh said that hoteliers in the country may raise the prices of rooms by 30 per cent, owing to an increase in theSingaporeans whom CNA spoke to said that the move to raise the prices of hotel rooms may push them to consider other options when visiting the country, such as using the online marketplace Airbnb. Others said that they may choose a different country in the region for their vacation.
While she may halt her extended vacations to other parts of Malaysia, Ms Hanisah said that she will continue travelling to Johor Bahru for her monthly grocery shopping due to the favourable exchange rate.Similarly, Ms Adriana, a 25-year-old preschool teacher, said that she will continue her trips to Malaysia as most of her travel there has consisted of day trips to Johor Bahru.
“If the increase in price is too drastic, I guess I won’t be travelling solo. With more people, you will be able to lower your travel budget,” said Mr Farizul Ikhmal, who works as a content safety labeller for a social media company. “Our currency is very stable and I think I can still afford to stay in Malaysia and enjoy my vacation there,” she said.
“Firstly, Singaporeans have significant spending power in Malaysia, particularly if the current strong Singapore to Malaysia currency exchange rate remains stable or continues to rise,” said senior marketing communications manager Mr Jeremiah Wong. “Regardless of how hotels respond, the effect will be felt throughout the industry and is expected to influence room rates.”
Dr Wong explained that due to a shortage of manpower in Malaysia’s tourism industry during the COVID-19 pandemic, increased wages were needed to attract workers to the hotel industry. Utility and other supply costs have also rapidly increased after the pandemic, she said. Meanwhile, Dr Kevin Cheong, adjunct faculty at Singapore Management University and University of Newcastle, Australia asked if the drastic price hike “would … be deemed as ‘profiteering’ from the SST increase”.INTERNATIONAL TOURISM LIKELY UNAFFECTED