Malaysian hotels raises rates

Malaysian hotels raises rates

KUALA LUMPUR (DPA): Four and five star hotels in Malaysia are expected to raise their room rates by 20 percent from April because of rising labor and food costs, a news report said on Wednesday.

The Malaysian Association of Hotels, an umbrella body of hotel owners and operators, said it would be the first big increase of room rates since the 1997 Asian economic crisis.

Roland Loh, the group's secretary-general, said he did not think the increased rates would jeopardise tourism as Malaysian hotels were already the second cheapest in Southeast Asia after Indonesia.

"It's just a minor adjustment. Except for some anticipated complaints from tourists from Hong Kong, China and India, we don't expect others to protest," he told the Star daily.

Loh said tourists unhappy with the sudden increase could opt for three or two star hotels.

The Malaysian Association of Tour and Travel Agencies also did not see a drop in tourists because of the higher room rates.