WHEN the credit crunch hit the world financial market and oil prices rocketted to a record high of US$149 per barrel last year, the tourism industry reeled from the aftershocks and plummetted with the downward spiral of a global economy in deep trouble.  

Suddenly, travelling became expensive and people put overseas trips on the back burner, preferring to stay at home rather than globetrotting in the name of prudence.

Countries that chased the tourist dollar were feeling the pinch. Hotels, tying up with airlines, offered attractive travelling packages to boost business.

The Asia Pacific region was not spared. Thailand, in particular, was hit by a double whammy — a slowing economy compounded by political unrest. The later part of 2008 saw Thai protesters laying siege to its international airport in a bid to topple the pro-Thaksin government, stranding thousands of international tourists for four days. The incident hogged the headlines throughout the world, marring Thailand’s international image and dealing its tourism industry a big blow.

Thai new prime minister, Abhisit Vejjajiva admitted the country’s need for the tourist dollar when he talked to CNN’s Dan Rivers, saying he would do what it took to lure tourists back to Thailand after the massive protest.

However, notwithstanding the dire tourism climate, local hotels are maintaining their old rates and even if there were to be a change, it would be minimal.

Noted American tourist, Gary Keck from Washington: “We do find Malaysian hotel rates generally too high — by about 50 percent in many cases. In Thailand and Vietnam, you can get a very nice hotel for US$35 a night but here, you have to pay US$65. We like Malaysia but not the hotel rates.”

Sharing Keck’s view were two young Swedish tourists, Simon Ekholm and Anton Holm, who stayed at a Kuching hotel. They felt the rates here were far higher than those in Indonesia and Thailand.

The duo were first in Bangkok for a week (Dec 5 to 12, 2008), then went over to Bali, Indonesia, and from there came over to Malaysia. From their tour, they discovered that even the budget hotels in Kuching charged more than those in either Bali or Thailand.

While here, they first stayed in a hostel at RM16 a night and later shifted to a hotel for RM24 a night.

The huge difference in hotel rates between Malaysia and Thailand could well be due to what Abhisit meant when he said: “The country is making concerted effort to boost its fledging tourism.”

A local journalist who took advantage of the situation to holiday in Bangkok also admitted that hotel rates were so much cheaper there than here.

“A night at the Hilton in Bangkok costs RM80 nett, inclusive of breakfast and the third night is free,” Nancy Nais noted.

An English couple, Poppy Mardall and Chris Pensa, however, thought otherwise, believing that accommodation charges in Bangkok were more taxing on their purse than those offered locally. While here, they stayed at an inn for RM35 a night.

“The hotel rate is pretty decent and we’re not complaining,” Mardall said.

The couple had been touring the whole of Borneo and enjoying every minute of it.

“I was in Bangkok four years ago and it was much cheaper then — US$3 per night for a very decent room — but I guess now, it should be much more expensive although it would be unfair to compare,” he added.

Another English tourist, Denis Merry who was in the city with her husband, thought the local hotel rates were a bargain.

Staying at the Grand Margherita, formerly Holiday Inn Kuching, Merry enjoyed the privileges of a member of the Priority Club, affiliated to the Holiday Inn chain of hotels.

“I can’t remember the exact rate of the hotel we stayed in when we were in Bangkok last year,” Merry said but she vividly remembered it was more than what they were paying here.

The English couple also stayed in a hotel of the Holiday Inn chain while vacationing in Thailand.

Austrian Dennis Schubert thought the local rates were very attractive. Staying at Riverside Majestic Hotel, he said he was getting more than he bargained for.

“By far, I’m very pleased with what I’m paying. I have a good and comfortable room with a splendid view of the river front.”

Despite the recession-hit global economy, hotels in Kuching appear only slightly affected. Room occupancy is actually quite high — an average of 70 per cent.

Room rates are also not affected — the same or only a slight increase. According to Harbour View Hotel’s head of sales, Irene Tan, rates have gone up “very marginally” for 2009.

“These are promotional rates and the average room now costs from RM130 to RM175,” she said.

Tan is confident Harbour View will do well this year despite the economic downturn.

“I like to look at the positive side. People from regional countries may not go on long haul trips. With plenty of low cost carriers flying into Kuching, tourists from countries such as Singapore may choose to travel here rather than to destinations like Thailand, especially after the recent trouble there.

“Everyone is cutting costs during this tough time, so instead of going five stars, they may opt to for three stars,”she said.

360 Hotel general manager Richard Wong is also confident tourist arrivals will increase this year.

“From March onwards, we’ll have Tiger Airways, Jetstar and AirAsia flying direct from Singapore to Kuching. So I expect the number of visitors to increase,” he said.

According to Wong, tourists may think twice about travelling to Thailand because of the recent political upheaval there and instead choose Kuching as their holiday destination.

“I believe the curiosity factor will make them come here,” he said.

For his relatively new four-star hotel, Wong revealed the room rates had actually gone down in order to standardise charges.

“The promotional rates are now RM155 nett for our deluxe rooms while our deluxe one-bedroom apartment costs only RM185 nett from the initial RM227 nett,” he said.

The hotel has 95 rooms of which 45 are apartment types.

Likewise, small hotels such as Brooke’s Terrace are not really feeling the effects of the slowing global economy.

“Since we opened last year, we’ve had guests staying at our 14-room boutique hotel. Last December, we were booked out almost everyday possibly due to the peak tourist season,” said Nancy (Nais), who is also the hotel director.

“But it’s a bit slow this month — our room occupancy is roughly 50 per cent,” she revealed.

According to her, Brooke’s Terrace room rates range from RM90 to RM160 but they are not deemed high by guests comprising mostly foreign tourists.

“In fact, my guests suggest I increase the rates. They say the rates I’m offering are cheap compared to other budget hotels.”

Nancy also believes local hotels should do well in the new year.

“For instance, during the Rainforest World Music Festival, there will be an influx of tourists, both domestic and foreign. Brooke’s Terrace is already fully booked for that period,” she said.

Keck observed the local car rental business did not offer rates as competitive as those in Kota Kinabalu, Sabah.

“You go to KK and rent a car at the airport for US$20 a day. Here, it’s US$30 a day if you are lucky.”

Ekholm, Holm, Mardell and Pensa were not affected as they went sight-seeing by bus and on foot while Merry, familiar with the city routes, took the cab.

Schubert believed Keck’s assessment was right to a certain degree but personally, he had not encountered any difference in rentals … and that’s because “I don’t rent a car as I do not know the roads. I go around in a cab or the hotel’s transport.”

The local car rental service is not dependent on tourists for business. In fact, the bulk of its custom comes from peninsular and Sabahan businessmen with a handful from Singapore.

“Hardly any tourists use our service,” disclosed a spokesperson of Golden System Car Rental and Tours Sdn Bhd.

“Most of our clients are contract customers — their offices have a contact with us to allow their workers to use our vehicles. The company picks up the tab.”

She disclosed walk-in customers were far and few in between, pointing out that since most did not know the city’s road system, they preferred using public transport like taxies or hotel transport.

The rental company, however, is giving discounts to make its rates more competitive.

“There’s about 20 to 30 per cent drop in business, especially in the bigger car sector. Smaller cars such as Kancil and Kelisa are more popular with clients,” she added.

Edwin from AMI Car Rental Sdn concurs with the Golden System Car Rental spokesperson, noting that despite the significant drop in business, the car rentals remain the same although he couldn’t say for certain they will stay that way for long.

“So far, there is no revamp,” he said.

Edwin’s clientele consists mainly of local businessmen. Foreign tourists are less likely to use the service for reasons cited by Golden System Car Rental spokesperson.

Suffice to say both services — hospitality and car rental — are marginally dependent on tourists, allowing them to maintain their old rates and should there be a change, it would still be small. Both services are sustained to a significant extent by the corporate and government sectors.