Hard hit hotels.

Sunday June 27, 2021. 

I saw this report today about the state of the hospitality industry in Malaysia after the second year of Covid 19 movement controls. The writer  connects his piece with the tourism industry in general. I would say the whole thing covers the business of the provision of food and lodging for travellers and locals in general. But he was singling out hotels in particular.

I was drawn to this piece because my son and a number of his cousins are involved in this industry. My son has a BSc in Travel Industry Management from Hawaii Pacific University and is in one of the larger hotels in the capital. His cousins are scattered over both smaller outfits and the catering business in Selangor and NS. The picture painted by the report is grim.

The report says in the last 2 years 120 hotels have closed, some permanently. The whole industry has lost a staggering RM 11.3 billions to date. This is the worst-hit sector of the economy. And he sees no quick end to the predicament. 3.6 million people are involved in the industry. That's a full 12% of the total population.

I remember staying in the Kinta Riverfront Hotel in Ipoh many times before "Corona" visited us. Even then the hotel was not the thriving meeting place you see in some hotels in KL, but when I went to the dining area upstairs, there was always a good crowd. The fare was standard hotel fare and was ok. In fact I used to pocket the left-over tiny packets of honey they had at breakfast. Then recently there was news that they were stopping operations for now, but maybe permanently.

Hotels are "watering holes" where people spend their disposable income and time, mainly to "lepak", but also for serious business. So you have all the facilities - the eating places, the health centres, the beauticians and the shops.   Of course hotels are also for events - business conferences, weddings,and celebrations, with the suitable venues for them. A good hotel squirms with people.

You stop people from coming to hotels, you stop the income. For a short period of time, the "fat" might sustain the costs, the hotel stays open. For a long period of time, the hotel folds. 

Hotels are operated by 2 entities, always. The owner who built them, and the operators who run them. That's why the names keep changing - either the ownership change hands, or the operator change places. The operator makes the immediate money for operating the actual businesses - selling food, goods etc. The owner takes longer to recoup his massive investment in building the hotel. 

There are many songs sung in hotels, about hotels, by hotel guests and hotel singers. I remember "Heart break hotel". There's the iconic "Hotel California". Right now there's quiet on the hotel front. The hotels are hit hard.

.........................................................................................................