Lodging is predicted to record stronger declines in 2021 to exacerbate an already torrid time for the industry following 2020’s drop in demand as a result of the pandemic, resulting in further establishments closing, and value of transactions experiencing another year of double-digit declines, with some leading chains having furloughed employees at their normal pay, while others made redundancies and reduced salaries, particularly at management and leadership level. The mid-market segment of hotels is likely to see the lowest declines in outlet numbers and value sales in 2021 followed by luxury and upscale while the most significant declines are for the larger segments of budget and unrated hotels.
Hotel operators are increasingly leveraging digital technology such as mobile and automated check-ins, digital concierge services, virtual menus, and contactless payments, not only offering greater convenience but also as an attempt to ease consumers’ concerns about exposure to the virus by reducing contact with staff members.
Lodging’s initial focus will be to continue to attract domestic tourists as restrictions once again start to be relaxed, with August 2021 seeing the government allow fully vaccinated citizens to travel between eight states which have experienced consistently reduced virus cases and high vaccination rates. The local government is also likely to allocate further funds to assist hoteliers to weather the crisis heading into the forecast period such as increasing the wage subsidy for hotel employees and extension of tax relief for hotel owners.
In addition to hotels, other lodging options will become increasingly attractive, including campsites and motor home parks, as consumers will be eager to look for leisure travel opportunities offered by Malaysia’s vast natural resources and more rural areas which enable them to socially distance. However, while other lodging is predicted to record higher growth rates over the forecast period in both value terms (at constant 2021 prices) and outlet numbers compared to the review period, they will struggle to fully recover by 2026 due to the severe impact of the pandemic on smaller operators, forcing many to close permanently.
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
Understand the latest market trends and future growth opportunities for the Lodging industry in Malaysia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Lodging industry in Malaysia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
This report originates from Passport, our Lodging research and analysis database.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Home Page