The hotel industry in Penang is expected to register a higher occupancy

GEORGE TOWN: The hotel industry in Penang is expected to register a higher occupancy rate of about 70% in the second half of 2010, compared with about 65% in the corresponding period of 2009.

The anticipated increase in the occupancy rate is due to the diversion of tourists to Penang and Langkawi from Thailand, said Malaysia Association of Hotels (Penang chapter) chairman Marco Battistotti.

“We expect an additional 6,000 to 7,000 room nights in the second half, based on feedback we received from tour operators in the region,” he told StarBiz.

Battistotti added that the local hotel industry was also expecting tourists from the Middle-East to return to Penang after Ramadan, as there would still be holidays for a couple more weeks.

“This is a new trend which started last year that saw the hotel industry registering over 3,000 room nights in September and October. This year, we expect about 5,000 room nights from the Middle-Eastern market after the Ramadan till mid-October,” he said.

Battistotti said that owing to AirAsia’s direct flights to Chennai, India, the local hotel industry registered 1,500 more room nights in April, May and June.

In the first quarter of 2010, the occupancy rate of Penang hotels was around 56%, compared with 53% in the first quarter 2009, he said.

Meanwhile, Cititel Penang sales and marketing director Vincent Ng said the hotel was undertaking extensive refurbishment of its 451 rooms and would start renovating the coffee house in August.

“We want to enhance our product to generate a strong market penetration from India, Hong Kong and Australia, which are the main markets we are tapping.

“The outlook for the third quarter remains unpredictable, although June and July look favourable. Business for the rest of the year will definitely be better compared with 2009.

“However, there is a shift in our arrivals, in that foreign arrivals have increased by 11.6%, while domestic arrivals decreased by 11.5% in the first five months of 2010.

“This is a positive indicator as it also shows that Cititel has established its brand name in the overseas market.

“One of the reasons for such a shift is the direct flights from Penang to Singapore, Chennai, Hong Kong and Macau by AirAsia,” he said.

For the first five months of 2010, Cititel Penang registered a 61.6% occupancy rate against 53.6% in the previous year’s corresponding period, Ng said.

Parkroyal Hotel Penang sales and marketing director Ernest Loi said the occupancy rate in the third quarter would decrease slightly due to Ramadan, which would start on Aug 11, and he expected an occupancy rate of about 75%.

“However, we will be adjusting our average room rates upward, currently at about RM410, in the third quarter.

“The Middle-Eastern tourists are expected to return after Ramadan in late September and early October. So we expect our occupancy rate to pick up again in the fourth quarter,” he said.

The second quarter of 2010 was expected to register an occupancy rate of about 67%, compared with 78% in the preceding quarter, Loi said.

Eastern & Oriental Hotel general manager Michael Saxon said that for the third quarter, the hotel expected more travellers from the United Kingdom, Europe, Australia, and Japan.

“We aim to attract more visitors from India, China, and Eastern Europe, as there are now regular direct flights from Chennai to Penang and increasing frequency of other budget flights to Penang,” he said.

“Most of our guests are foreigners with more than half being holidaymakers while the rest comprise corporate travellers and the meeting, incentives, convention and exhibition (MICE) market segment.

“Our hotel maintains a high occupancy level, achieving 70% in the first quarter of 2010. Even during the industry’s low season in the second quarter, we sustained a healthy occupancy of 62% in during the quarter.

“Due to the prevailing uncertainties in the global economy, domestic spending power is still weak especially in the UK, Europe and America but as economic strength gathers momentum in countries like Australia, Japan and the Asia-Pacific region, we foresee greater improvement in the tourism industry this year,” he said.

Hard Rock Hotel Penang sales and marketing director Betty Lim said the second quarter was expected to register a stronger occupancy rate than the first quarter of 2010, which registered about 60% in occupancy rate.

“We expect the Middle-Eastern market, tourists from the Asean region, and Australia to drive business growth in the third quarter.

“About 70% of our guests are from the leisure market, while the remainder come from the MICE market,” Lim said.

On another note The state administration’s inability to solve problems caused by beach touts at Batu Ferringhi has prompted hoteliers to seek the Federal Government’s help.
The Penang chapter of the Malaysian Association of Hotels (MAH) has written to Tourism Minister Datuk Seri Dr Ng Yen Yen, inviting her here for a roundtable discussion and briefing on the escalating problems at the popular beach front.

MAH members relayed their frustration to Dr Ng, expressing how they were at their wits’ end because of the state government’s inertia in tackling the problem.

They also informed her of the numerous emails and complaints that had been lodged with the state authorities over the past two years.

The hoteliers complained about the longstanding issue of non-enforcement by local authorities against beach touts and unlicensed leisure activities at the beach front.

Shangri-La’s Rasa Sayang Resort and Spa director of communications Suleiman Tunku Abdul Rahman said MAH members were alarmed with how the situation in Batu Ferringhi had escalated.

He said this had affected Penang’s reputation and attraction as a tourist destination.

“Our hope for recourse and decisive action now rests with the Tourism Ministry. We look forward to a favourable response from the ministry and hope to meet the minister on her next trip to Penang.”

The nuisance posed by beach touts at Batu Ferringhi has reached alarming levels of late as they have become very brazen in harassing tourists at the beach.

There have been many reports of tourists being ripped off by being charged exorbitant amounts for horse rides, parasailing and jet- skiing activities.

Such negative incidents have been making the rounds on travel websites, including the popular Tripadvisor site which is used by millions as a reference point before planning their holidays.

Read more: Hoteliers seek ministry’s help on beach touts http://www.nst.com.my/nst/articles/27touts-2/Article/#ixzz0u1UQyq8C

PENANG to maintain the 6.3 million tourist arrivals

PENANG should be able to maintain the 6.3 million tourist arrivals it recorded last year for 2009, according to Malaysian Association of Hotels (MAH) Penang chapter president Marco Battistotti.

He said the arrivals should mainly be from other Malaysian states, countries in the region and the Middle East.

“Although there is a slight drop in arrivals from the Middle East due to the coming Ramadan, we expect this to pick up in September after the fasting month,” Battistotti said.

“The period after Ramadan is still considered a holiday season in the Middle East. We believe many will take leave to travel.

“Thus, tourist arrivals to Pe-nang will be supported by the Middle East market in the third quarter.”

He said there was a slight drop of 3.5% in Penang’s hotel occupancy rate in the first six months of the year compared to the corresponding period last year.

He, however, said the occupancy rate for hotels in the Tanjung Bungah and the Batu Ferringhi belt was 3% higher than last year for the six-month period while there was about a 5% decline in the occupancy rate for hotels in George Town.

In 2007, Penang recorded 5.2 million tourist arrivals according to statistics from the Tourism Ministry.

Chief Minister Lim Guan Eng said the state government had established the Penang Global Tourism Sdn Bhd as the state’s vehicle to drive tourism.

“It aims at securing commitments from the Federal Government in tourism projects for Penang and working with local tourism players to improve the basic infrastructure,” he said in a statement.

“The expected commencement of the upgrading of the Penang Hill funicular train in the next few months by the Federal Government with an expanded budget from RM40mil to RM60mil is a positive sign of how the federal and state governments can work together for the benefit of the people.”