Yong Tai's Recovery Continues as the Group Capitalises on the Resurgence of Travel

Yong Tai Berhad (“Yong Tai”) has successfully turnaround its business operations, returning to profitability since the first quarter of its fiscal year ending on June 30, 2023 (“1QFY2023”). This positive development indicates a modest recovery for the Group and underscores its resilience in navigating the challenges that emerged during the last three years amid the COVID-19 pandemic.

The company's resilience has marked the journey towards profitability to adapt and respond effectively to the shifting landscape.

As the business environment evolves, Yong Tai has remained committed and focused on progressively delivering its projects over the last three years. By demonstrating its capacity to weather through the pandemic and bounce back from adversity, Yong Tai has established a foundation for long-term success and stability as the Group capitalise on the growth and resurgence of the tourism industry.

In the first half of its fiscal year ending on June 30, 2023 ("1HFY2023"), Yong Tai triumphed in revitalising its business, reporting a net profit of RM3.4 million. This resurgence in profitability was fuelled by a more than threefold surge in the Group's revenue, which escalated to RM78.6 million in 1HFY2023 compared to RM22.0 million during the same period the previous year.

Based on a media invitation sent out and cross-check on Yong Tai's social media account, Courtyard by Marriott Melaka, a luxurious international business hotel boasting 287 rooms, is slated to open its doors by 8 April 2023.

Owned by Yong Tai, Courtyard by Marriott Melaka is an exemplary choice for both business and leisure travellers seeking to uncover the captivating heritage city of Melaka. Situated a mere 15 minutes from the Melaka International Airport, the hotel offers unparalleled access to the city's historical landmarks, shopping district, and local street food scene, making it an ideal base for visitors.

The inauguration of Courtyard by Marriott Melaka, a member of Marriott Bonvoy's prestigious portfolio of 30 hotel brands, at the core of the UNESCO World Heritage City of Melaka, represents a significant milestone for them. Furthermore, it comes at a critical juncture for the Group, as the pent-up demand for travel offers significant opportunities to capitalise on the influx of tourists.

Pent-up Demand and Reopening of International Borders

An analyst from a foreign brokerage predicts that the tourism industry will maintain a positive momentum due to the increased interest in travel following months of travel restrictions and uncertainty caused by the COVID-19 pandemic.

"People are eager to explore new destinations and indulge in unique experiences after months of travel restrictions and uncertainty due to the global pandemic," he said.

With its prime location in the heart of a UNESCO World Heritage City, Courtyard by Marriott Melaka is perfectly positioned to accommodate the predicted surge in demand for accommodation and hospitality services. The hotel offers an enticing blend of contemporary Asian hospitality, history, and culture, making it an ideal choice for both leisure and business travellers.

The upswing in travel demand will undoubtedly benefit them, as the increased patronage at Courtyard by Marriott Melaka directly bolsters the company's bottom line.

To put into perspective, Melaka is one of Malaysia's top tourist attractions before the COVID-19 pandemic. In 2019, there were about 18.7 million tourists’ arrivals in Melaka, while tourists’ spending reached RM21.3 million level. This represents an increase of more than five times the level over the last three years amid the pandemic.

With the reopening of international borders and return to travel, it is likely that the tourists’ arrivals in Melaka will see a sharp rebound this year. This will boost the occupancy rate of the hotel and benefit the opening of Courtyard by Marriott Melaka.

The hotel's refined spaces and top-tier amenities position it to attract both leisure and business travellers, while it is also expected to generate a consistent recurring revenue stream for the Company as travellers return to Melaka.

Furthermore, the hotel's success will strengthen Yong Tai's standing as a leader in Malaysia's tourism industry, underscoring the company's dedication to delivering exceptional hospitality experiences and contributing to the nation's economic recovery.

As the global travel landscape continues to transform, the Courtyard by Marriott Melaka will play an instrumental role in tapping into the pent-up demand for travel, ultimately benefiting both Yong Tai and Malaysia's tourism sector.

Malaysia develops closer ties with China

The recent development between Malaysia and China is likely to attract more business travellers to Malaysia, which, in turn, will be positive of the overall development of the country's tourism sector.

The strengthening relationship between Malaysia and China will boost business and investment opportunities between these two countries. As Chinese companies increasingly invest in Malaysian infrastructure, manufacturing, and technology sectors, a growing number of business travellers are expected to visit Malaysia for meetings, conferences, and networking events. This influx of business tourists will contribute to the rising demand for hotel accommodations, particularly those offering amenities and services tailored to the needs of corporate travellers.

Aside from that, the improved diplomatic and economic ties between Malaysia and China will also lead to an increase number of Chinese tourists that visit Malaysia, enticed by the its rich cultural heritage, stunning landscapes, and warm hospitality. This surge in tourism is set to boost the hotel industry, with hotels experiencing higher occupancy rates and greater demand for accommodation options. As a result, hoteliers can capitalise on this opportunity by tailoring their services to cater to the preferences of Chinese visitors, ensuring a mutually beneficial exchange that further solidifies the robust relationship between Malaysia and China.

"The opening of Courtyard by Marriott Melaka is not only a testament to the company's vision and resilience but also reflects Yong Tai's commitment to make Melaka a premier destination for international travellers. It is also timely and could benefit from the improved relationship between Malaysia and China, which could boost tourists arrivals from China, " an industry expert shared.

He added that with a strong focus on contemporary Asian hospitality, this new hotel is set to cater to the discerning tastes of both leisure and business travellers, offering them a comfortable and sophisticated space to unwind after a day of exploration or meetings.

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