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Pandemic Outbreak: Resilience of Hotel Industry

INTRODUCTION TO COVID-19

Coronavirus 2019 (COVID- 19) is a contagious disease caused by coronavirus 2 severe acute respiratory syndrome

(SARS- Co V- 2). I t was first identified in December 2019 in Wuhan, China, and has since spread to the rest of the

world, resulting in pandemic outbreak. When China' s lockdown was announced on 26th January 2020 to curb

the deployment of Covid- 19, Malaysian tourism industry stakeholders were caught up in the delay, cancellation

and burden of returning orders.

Till March 2020, Malaysia Association of Hotel (MAH) has recorded, total number of hotel' s lost revenue has

increased more than 193 thousand overnight rooms, which almost nearly to RM 76 million due to pandemic

outbreak.

01. 02.

Cancellation of room bookings Malaysian tourism industry

alone has caused more than RM stakeholders were caught up in

75 million in room revenue for the delay, cancellation and

the hotel industry in Malaysia, burden of returning orders.

around 193 000 room nights.

BUSINESS IMPACTS PRIOR PANDEMIC

The hotel was affected when China first announced lockdown of its own citizens on 26th January 2020.

Furthermore, the cancellation of direct bookings began to come in, demanding refunds that not only lost revenue

but also vacated rooms. On the other hand, the same situation goes to group bookings and travel agents

demanding immediate refunds as they have also received cancellations from their overseas counterparts.

The matters became worse, when the pandemic outbreak is gradually increasing not only China, but also

domestic tourists and neighboring countries, all fearful of Covid- 19 ' s deadly travel and contracts.

The number of early cancellations has swelled and to date (as of 20th March 2020) , cancellation of room

bookings alone has caused more than RM 75 million in room revenue for the hotel industry in Malaysia, around

193 000 room nights. This does not include cancellation of events, conferences, exhibitions, meetings and food &

beverage losses.