Kuala Lumpur hotel rates cheapest in Asia: Report

Kuala Lumpur hotel rates cheapest in Asia: Report

KUALA LUMPUR (DPA): Hotel rates in Kuala Lumpur are the cheapest among major cities in Asia according to a recent survey, a news report said Saturday.

But while the low rates are a cause for joy to tourists, hoteliers and Malaysian tourism authorities are concerned they have accelerated a price war among hotels desperate to attract guests.

The New Straits Times daily said a recent survey by the Arthur Andersen group found that Kuala Lumpur had the cheapest hotel rates among 15 Asian cities polled, including those in Bali, Beijing, Singapore, Bangkok and Hong Kong.

The average room rate in Kuala Lumpur was US$38.99 a night, compared with $200 in Tokyo, $95 in Singapore, $78 in Jakarta and $54 in Bangkok.

A Malaysian Association of Hotels spokesman said room rates in Kuala Lumpur fell 16 percent last year, mainly due to the recession and the Asian financial crisis.

The cheap room rates plus affordable tour packages have drawn tourists from other developing countries such as China to Malaysia.

However, the spokesman complained the low rates were "unhealthy" for the industry. "They are too low, and hoteliers have to make up for it in terms of higher occupancy. But this takes time," he said.

Culture, Arts and Tourism Ministry secretary-general Iskandar Dzukarnain Badaruddin last month voiced concern that hoteliers were engaging in a price war causing rates to become unreasonably cheap.

He said the price war could give visitors the wrong impression and lead tourists to suspect something was wrong with the five- star hotels which offer the cut-price room rates.