PIPELINE : ASIA PACIFIC
MALAYSIA
UNWTO data shows Malaysia received the 10th most international tourist arrivals worldwide in 2012 . Tourism receipts in 2012 were up 3.9 %, and more than 50 % of international arrivals came from neighboring Singapore , according to Tourism Malaysia . However , new supply is causing occupancy to decrease in Kuala Lumpur as the first five months of 2013 show a decline of about 4 %, according to STR Global . Outside the capital , development is concentrated on the eastern and southern sides of the Malay Peninsula , particularly on the island of Langkawi and the Iskandar Malaysia development zone that includes Johor Bahru and surrounding areas along the Straits of Johor . Shangri-La Hotels and Resorts opened the 283-room Traders Hotel , Puteri Harbour , Johor , Malaysia , there in June — the company ’ s 11th hotel in Malaysia .
“ A lot of the development in Kuala Lumpur has been real estate-driven , not so much demand-driven ,” says
NEW SUPPLY IS CAUSING OCCUPANCY TO DECREASE IN KUALA LUMPUR , AS THE FIRST FIVE MONTHS OF 2013 SHOW A DECLINE OF ABOUT 4 %, ACCORDING TO STR GLOBAL .
Robert Hecker , managing director at Horwath HTL ’ s Singapore office . “ Kuala Lumpur is facing an oversupply situation with occupancy suppressed , while Iskandar has become a kind of growth outlet for Singapore .”
Government investment agency Khazanah Nacional is investing 267 million ringgits ( US $ 84 million ) in two theme parks in Desaru . Destination Resorts and Hotels , established by Khazanah in 2010 , is investing in a Legoland hotel in the Iskandar zone , owns and operates the 124-room Datai Langkawi and is developing resorts in Langkawi and Desaru .
Local budget chain Tune Hotels currently operates 11 hotels in Malaysia . It also is expanding in the Philippines and Australia and already has hotels in Thailand , India , the U . K . and Japan . Despite the presence of Tune , Archipelago International is focusing on expanding in Malaysia with its budget brands Favehotels and Hotel Neo . “ In Malaysia there is an acute shortage of well-managed , branded budget hotels ,” says Norbert Vas , vice president of sales and marketing , Archipelago International .
Minor Hotel Group ’ s Avani brand is set to enter Malaysia with the conversion of the 303-room Golden Palm Tree Iconic Resort & Spa to Avani Sepang Goldcoast Resort , near Kuala Lumpur .