by Zainuddin Muhammad

KUALA TERENGGANU, MALAYSIA: All is not well with the hospitality business in the state: most hoteliers and resort operators are scrambling to prop up their sagging occupancy rate.

With this month's average room occupancy dipping to between 20 and 30 per cent, the mood is grim. Some industry players feel that without better support only the fittest will survive the economic slowdown.

Malaysian Association of Hoteliers Terengganu chapter secretary Shahril Naelis Amir said some establishments were on a marketing offensive, trying to out do each other with heavily discounted room rates to make their accommodation packages more attractive.

Shahril, who is also Kuala Terengganu Felda Residence Hotel general manager, said business had fallen after a spike last year from the Visit Terengganu Year 2008 promotion and a boost from the Kuala Terengganu parliamentary by-election last month.

"The association plans to weather this economic storm by shifting our marketing focus to prospective tourists from Australia, the Middle East and Asia, instead of the United States and European countries where the financial crisis has hit hardest."

He said association members could use a helping hand from the government to promote the state to the rest of the world with events to attract domestic and foreign tourists.

"We are disappointed that the state government's calendar of events has yet to be finalised although it is almost two months into the new year .

"Most of us hoteliers and resort operators have had to revise our marketing plans a few times trying to anticipate coming events.

"After a splendid Visit Terengganu Year 2008, some of our members have expressed concern that some major international events, such as the Monsoon Cup, may not be held this year and this may lead to an even lower than expected number of visitors to the state."

Kuala Terengganu Seri Malaysia Hotel general manager Ab Jalil Zainal Abidin wished he could share the optimistic view of Menteri Besar Datuk Ahmad Said, who recently indicated that the number of visitors to the state this year could reach four million, about 500,000 more than the 3.5 million tourists who visited Terengganu last year.

"We would be delighted if that were to be true but judging by the limited number of occupied rooms this month, we have a valid reason to be sceptical, although I am willing to reserve my judgment until the end of the school holiday season next month.

"Should our occupancy rate during the coming school holiday week be lower than 70 per cent, in contrast to the usual 100 per cent, then we will know for sure that we are in for some lean and testing times for the rest of the year and necessary cost-cutting measures will be taken."

Ri-Yaz Heritage Resort and Spa general manager Malizan Zakaria said his five-star boutique resort had started offering special packages to lure domestic travellers as well as local residents.

"We are fairly new here and need people to get to know us better. As far as our low occupancy rate is concerned, we believe it is not really because of the global economic crisis. Come March, we will surely see some improvement."