Recovery strategies in response to the COVID-19 pandemic: empirical evidence of the Malaysian hotel industry

The COVID-19 pandemic has led to a fundamental impact on human health worldwide and the global economy. As a consequence of the pandemic, immediate precautionary measures for safety were imposed to ensure public safety. The travel and tourism sector are among the biggest casualties of COVID-19. Drawing from the contingency theory of management, this study examines the effect of COVID-19 on the hospitality industry. Data were gathered through a questionnaire survey distributed to 77 managers of hotels in Penang and Langkawi, specifically members of the Malaysian Association of Hotels (MAH), and were analysed using multiple regression analysis. The findings revealed a significant decline in hotel performance, particularly the room occupancy rate, pricing, revenue, profit margin and market share. Maintenance practices are the most effective cost-cutting initiatives at the recovery stage that significantly reduce the decline in hotel performance. Apart from a few studies highlighting hospitality recovery strategies due to the impact of COVID-19, to the researcher's best knowledge, this is the first study to systematically examine the extent to which the recovery practices would assist in recovering from the shattering impact of COVID-19. This study provides empirical evidence to represent COVID-19 implications for the hotel industry in an emerging economy.