By CY Ming
The MyTourismData Portal under Tourism Malaysia shows there were 4,799 hotels and 304,721 rooms in the country as of last year.
The statistics from the hotels surveyed show that the average occupancy rate (AOR) for all hotels was 67.1%, however, in the Key Tourism Indicators of 2015, it was stated as 61.9%.
The 5.2% variance in AOR is critical, as it makes a big difference between profit and loss for most hotels.
Interestingly, the number of foreign guests who stayed at hotels in Kuala Lumpur last year numbered 9,341,801 and locals 6,552,354, or 59% and 41%, respectively.
Based on 5.5 nights as the average length of stay for foreign guests, they would be occupying 38,534,930 room nights in the city based on 1.5 guests per room.
The average length of stay for domestic tourists was 2.3 nights, according to the Statistics Department. Based on 1.5 guests per room, they would occupy 11,302,810 room nights.
Combined, foreign and domestic travellers occupied 49,837,740 room nights in Kuala Lumpur. If so, the national figures do not make sense.
The 304,721 rooms in the country meant that 68,847,139 room nights were occupied in 2015 if the AOR was 61.9%, or 74,630,743 room nights if the AOR was 67.1%.
Both numbers are close to the Kuala Lumpur figure when they should be several times more, as many tourists also visited Langkawi, Penang, Genting Highlands, Malacca, Johor Baru, Kuching, Kota Kinabalu and many other cities and destinations in the country.
Last year, Malaysia received 25,721,251 foreign visitors and if all of them stayed at hotels overnight, they would have occupied 106,100,160 room nights.
We also had 62.7 million domestic tourists and if all of them stayed at hotels, they would have occupied 108,157,500 room nights.
Last year, there was a total of 176.9 million domestic tourists, out of which 114.2 million are excursionists taking day trips and do not stay overnight away from home.
Combined, foreign visitors and domestic tourists would have required 214,257,660 room nights for stay in hotels or away from home.
As only 68,847,139 room nights were occupied in the 4,799 hotels, many must have stayed at smaller hotels or properties not included in the Tourism Malaysia count, or with relatives or friends, or in their second or own home, as in the case of Singaporeans residing in Johor.
Slightly more than 50% of foreign visitors were Singaporeans last year, and if visitor figures include the large number of foreign workers and students, then it is no surprise that Malaysian hotels suffer from low occupancy despite a high head count of visitors.
Also, many travellers may be taking overnight trips on buses and trains, or bunk down at airports and stations to save cost.
But with the advent of online marketplace and homestay network such as Airbnb, more and more travellers will be staying at cheaper private residences and even homestays.
In terms of numbers, our tourism must surely be a huge success going by the head count, but the low tourism receipts suggest otherwise.
Services are bound to deteriorate once the saturation point is passed, as capacity is limited. Therefore, we should shift focus by raising services and gear towards higher-end tourist.
As it is, the average rates for hotel occupancy and room charges are low, and so are service standards.
This came about as many of our best and brightest Malaysians are working overseas while others shun hotel jobs.
As a result, many foreign workers had to be brought in to keep our hotels running. Sadly, nothing will change without breaking this vicious circle.
CY Ming is an FMT reader.
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