MIRI: Malaysia Association of Hotels Sarawak chapter proposes a two-tier pricing system for Sarawak hotels, wherein foreign tourists would be charged the full rate while locals would enjoy a potentially 30 per cent cheaper.
Its chairman, John Teo said that neighbouring countries like Thailand, Indonesia, and the Philippines have successfully implemented similar charging systems.
He said that the practice of charging hotel room rates in US dollars is unnecessary due to the fluctuating exchange rates and the decreasing use of the currency by foreigners.
Teo was responding to a news report on a latest suggestion to the government by the Malaysian Association of Hotel Owners (Maho) to allow them to charge foreign visitors in US dollars.
In a related matter, during Sarawak Tourism Board meeting held last year, Teo disclosed that the current hotel room rates in Sarawak barely cover the operating costs, leaving no surplus for improving hotel facilities or hiring additional staff to provide better services to guests.
Teo explained that in order for a hotel to allocate an additional 10 to 20 per cent of revenue for facilities maintenance and better staffing, it requires a room occupancy rate of 60 per cent or higher and higher room rates.
He explained that the current room rates in Sarawak are considerably lower compared to overseas counterparts. For instance, a 3-star rated hotel in Sarawak charges between RM120 to RM160 per night, whereas a similar hotel overseas would charge at least RM180 to RM300.
Similarly, 4-star rated hotels here charge between RM180 and RM280 per night, while overseas hotels charge RM320 and above. Teo pointed out that even a 5-star rated hotel in Sarawak can be booked for only RM320 to RM380 per night, whereas the cost would be at least RM500 or more overseas.
According to Teo, to offer facilities and services that are on par with overseas hotels, he suggested adjusting Sarawak hotel room rates to RM480 to RM580 and above for 5-star hotels, RM280 to RM450 for 4-star hotels, and RM180 to RM280 for 3-star hotels.
