Proceedings of the 1st International Conference on Social, Science, and Technology, ICSST 2021, 25 November 2021, Tangerang, Indonesia

Research Article

Covid-19 and Hotel Performance of Hotel Industry in Malaysia: Its Effects and Strategic Renewal

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  • @INPROCEEDINGS{10.4108/eai.25-11-2021.2319349,
        author={Zarinah Abdul Rasit and Aliza  Ramli and Tuan Zainun Tuan Mat and Nazirah  Aziz and Reniati  Reniati and Hamsani  Hamsani and Dian Prihardini Wibawa},
        title={Covid-19 and Hotel Performance of Hotel Industry in Malaysia: Its Effects and Strategic Renewal},
        proceedings={Proceedings of the 1st International Conference on Social, Science, and Technology, ICSST 2021, 25 November 2021, Tangerang, Indonesia},
        publisher={EAI},
        proceedings_a={ICSST},
        year={2022},
        month={7},
        keywords={hotel industry; hotel performance; strategic renewal; covid-19},
        doi={10.4108/eai.25-11-2021.2319349}
    }
    
  • Zarinah Abdul Rasit
    Aliza Ramli
    Tuan Zainun Tuan Mat
    Nazirah Aziz
    Reniati Reniati
    Hamsani Hamsani
    Dian Prihardini Wibawa
    Year: 2022
    Covid-19 and Hotel Performance of Hotel Industry in Malaysia: Its Effects and Strategic Renewal
    ICSST
    EAI
    DOI: 10.4108/eai.25-11-2021.2319349
Zarinah Abdul Rasit1,*, Aliza Ramli1, Tuan Zainun Tuan Mat1, Nazirah Aziz1, Reniati Reniati2, Hamsani Hamsani2, Dian Prihardini Wibawa2
  • 1: Faculty of Accountancy, University Teknologi MARA, Malaysia, Bandar Puncak Alam, Malaysia
  • 2: Management Department, Economic Faculty, Universitas Bangka Belitung, Indonesia
*Contact email: zarinah371@uitm.edu.my

Abstract

This research seeks to examine the effect of Covid-19 on hotel performance and strategic renewal of the hospitality management industry in Malaysia. 60 useable responses were successfully gathered through a questionnaire survey method distributed to managers of 77 hotels in Penang and Langkawi islands, members of the Malaysian Association of Hotels (MAH). The research findings reveal that the pandemic has significantly affected the hotel industry's performance and operations. Hotel performance was affected significantly, whereby almost 90% of the respondents experienced significant declines in room occupancy rate, pricing, and total revenue. In addition, 80% of the respondents faced a significant decrease in profit margin, leading to a significantly reduced market share. Strategic renewal initiatives focussing on maintenances practices include extensive cash collections monitoring, switching to better financing solutions, contract terms renegotiation, identifying flexible financing terms, cash management revision, and implementing prudent cost management. The research focuses explicitly on Penang and Langkawi islands, the two well-known tourist attraction islands in Malaysia. The survey method employed may have limitations in providing extensive findings as most hotel operations are significantly affected by the pandemic. Findings would contribute to determining effective renewal initiatives to enhance hotel industry performance in Malaysia.