Accommodation plays a big role in decision-making when we make travel plans. Depending on the budget, some people opt to stay in budget hotels instead so that they can spend more on food, shopping and activities. At the end of the day, we just need a place to rest after a long day out, right?

Unfortunately, budget hotels in Malaysia are not doing so well.

Malaysia Budget Hotel Association (MyBHA) president PK Leong told Free Malaysia Today that the whole of 2017 was bad for budget stays nationwide.

Some businesses were forced to cut down their employees, and in Kuala Lumpur alone, 10 budget hotels have reportedly stopped operating.

Budget hotels here have taken the hit because there was a drop in the number of international tourists since early last year and Malaysia’s tourism industry did not perform as well as our neighbours, like Thailand, Indonesia and Vietnam.

Why you no like budget hotels?
Another reason that contributed to poor business was the fact that Malaysians are not travelling within the country as much as we used to anymore, most likely due to the higher cost of living and lower disposable income.

Leong also added that budget hotels in Malaysia have been suffering because of Airbnb.

Homeowners who turn their vacant houses and apartments into short-term lodging for tourists have greatly affected the industry as a whole.

The only way we could fix this matter right now is to continue efforts in finding new ways to attract more tourists to Malaysia, especially in Peninsula Malaysia.

“Right now, Sabah is doing well. A lot of Chinese tourists are visiting Sabah because they love the clear blue skies,” Leong told Free Malaysia Today.

Maybe Malaysia could learn a lesson or two from other countries?