Travellers to Malaysia mulling fewer hotel stays amid projected 30% hike in room rates

November 7, 2023

SINGAPORE: Amid a forecasted hike in the prices of hotel rooms in Malaysia next year, some travellers say that they may opt for alternative accommodations or arrangements though experts believe that the spike in prices is unlikely to have a major impact on international tourism.

In a report last Friday (Nov 3), Malaysian Association of Hotels (MAH) president Christina Toh said that hoteliers in the country may raise the prices of rooms by 30 per cent, owing to an increase in the Sales and Services Tax (SST) next year.

Singaporeans 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.

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Ms Hanisah Halid, 26, who stays in hotels at least twice a year during her visits to Johor Bahru in Malaysia, noted the appeal of cheaper hotel prices there as compared to Singapore.

“(I stay at the hotels) in Johor Bahru because of the low price. If the rates increase, I can just go on a day trip instead of staying over,” said the receptionist, adding that she typically stays in hotel rooms priced at less than S$150 (US$111) per day.

A search by CNA found that higher-end hotels in Johor Bahru can cost anywhere between S$90 to S$157 for a standard room for two, while similar hotels in Singapore can cost between S$300 to S$800 a night. Source: CNA