Hotel Industry in Malaysia

1631 Words Apr 24th, 2013 7 Pages
MARKET STUDY
Market Study of Hotel and Resort Sector in Malaysia
Malaysia’s hospitality industry is experiencing healthy growth in hotel openings and hospitality-related services through the steady flow of business travelers, tourists and popularity as a MICE (Meeting, Incentives, Conventions, Exhibitions) venue. Malaysia’s advantage in this sector lies in good value in terms of costs compared to the rest of the region, its diversity of natural attractions such as beaches and mountains as well as solid infrastructure and amenities.

Table 1
Table 1 shows the supply trend of 3-5 star hotels and hotel rooms from 2011 to 2012. In terms of the number of rooms, Malaysia showed an increase of 1.1% from 193,340 rooms in 2011 to 195,445 rooms in
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Giles and Holiday Villa in Johor Bahru.
The new products have really contributed to the increase in demand of hotels and resorts in Johor. Legoland has already surpassed its target mark of 1,000,000 visitors while Puteri Harbour Family Theme Park is on track to achieving its target of 500,000 visitors. Newly confirmed additions are Legoland’s water theme park in Iskandar Malaysia, the Ocean Splash and Ocean Quest water parks in Desaru which are slated to open by year-end and 2015, repectively. These new theme park are reported to increase tourist spending by 25% and lengths of stay by a minimum of two nights. It appears that there are tendency for hotels and resorts in Johor to take 10 years to see a return on investment. It is due to the prospects of Johor becoming Asia’s amusement park capital that seems promising.

Market Study of Proposed Development

Attractions of Kota Tinggi
The proposed development which is an eco-resort (Kota Tinggi Eco Resort) are located in Mukim Kota Tinggi, District of Kota Tinggi, Johor. Kota Tinggi is a town in the state of Johor, located around 42 kilometers north-east of Johor Bahru. The demand for hotels and resorts in Kota Tinggi are highly affected by the tourism sector as Johor is regarded as an important gateway for Malaysia. It accounts for about half of the total number of tourist arrivals in Malaysia. Johor Tourism Council have done a lot of promotions to help boost the

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