| Summary: | Hotels in Johor Bahru have been enjoying high occupancy rates since 1990. The high occupancy rates were partly due to the influx of tourists in the Visit Malaysia Year 1990 and largely the great demand from the business or corporate segment due to the success of Johor State Economic Development Corporation (JSEDC) in attracting industries into Johor through active and aggressive promotions. Besides, high occupancy rates were also due to the shortage of hotel rooms during that period especially from the quality perspective. Owing to the great demand for hotel rooms, many leading hotels in Johor Bahru have embarked on extensive expansion and refurbishment program since the early part 0f 1991 to meet the demand of hotel guests. In the same time, many new large hotel developments were also proposed. This study tried to identify the potential surplus or shortage of hotel rooms in Johor Bahru in the next five years by establishing and projecting a trend of demand and supply of hotel rooms in the city from 1982 to 1998. Besides, effort was also made to ascertain the type of hotel room users in the city. Analysis showed that the emergence of new hotel rooms in Johor Bahru is happening as a fast than its demand. Surplus of hotel rooms and decrease of hotel occupancy rates are expected in the city in the next five years. Analysis also showed that the domestic businessmen and goverment travellers are the main user of hotel rooms in the city.
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