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20% out of 2,300 Budget Hotels Could Close Down Due To Covid-19

20% out of 2,300 Budget Hotels Could Close Down Due To Covid-19

Hakim Hassan

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Malaysia’s hotel industry is in dire need of assistance from the government as around 20% of 2,300 budget hotels are in danger of permanent closure due to Covid-19.

In an interview with The Sun, the National Budget Hotels Association deputy president Dr Sri Ganesh Michiel said that although restrictions on interstate travel have been lifted, hotels are finding it difficult to attract tourists.

Most budget hotels which rated three stars or below, he said are concentrated in cities and only well-known destinations such as Penang, Langkawi and Port Dickson saw an increase in bookings.

Some of our members have registered occupancy rates of fewer than seven rooms per night. On the bright side, this is a little better than during the height of the movement control order when we did not sell any rooms.

National Budget Hotels Association Dr Sri Ganesh Michiel via The Sun

He said that the situation is so severe that some budget hotel operators can’t even find the money to pay the rent.

To overcome this issue, he said, the government should look into a fast track legislation that will protect operators from legal action related to bad debts incurred due to Covid-19.

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