Date of Award

1-1-2000

Thesis Type

Masters

Document Type

Thesis

Divisions

Faculty of Business and Economics

Department

-

Institution

Universiti Malaya

Abstract

Since start of the Asian Economy crisis in 1997, most industries in Malaysia have been experiencing a difficult time. Tourism industry had to face several challenges such as currency fluctuations, negative media reports, stringent government policies, reduced market demands and global competition. The negative effects on the industry were compounded by the national economic slowdown, i.e., GDP contraction of 6.7 per cent in 1998. Tourist arrivals were also descended to a low of 5.5 million, compared to 6.2 million in 1997 (MATTA Annual Report 1998). Malaysia's hotel industry, particularly those located in Klang Valley have faced extreme pressure in their business performance during this period. The two major factors contributed are as follow- 1. The economy downturn enticed significant decline in tourist arrival 2. Increased number of new hotels has given rise to over supply in room inventory in this capital city. The issues mentioned led to fierce competitions among hotels of all categories. They embarked on aggressive promotional activities specifically price wars among hotels in the same category. It resulted in reduction in operating revenue and profit. In fact, many hotels are operating at a loss during this period and some are facing financial difficulties.

Initial

snms

Additional Information

Dissertation (M.A) -- Faculty of Business and Economics, Universiti Malaya, 2001

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