Deputy Culture, Arts and Tourism Minister Datuk Dr Ng Yen Yen said the survey by the Malaysian Association of Hotels covering 63 members concluded they had to find alternatives to counter the drastic decline.

“Like all countries in the world, we have been affected by the Sept 11 tragedy. We have reports of cancelled reservations from hotels,’’ she said.

Dr Ng said that 43 of the 63 hotels surveyed confirmed they suffered cancellations while 17 said they did not face such a problem.

“They anticipate total revenue loss of RM18mil over the next three months,’’ she told reporters yesterday after launching a Mesra Malaysia training programme aimed at inculcating courtesy and friendliness among employees who deal with the public and tourists.

She said the impact on the tourism industry was felt strongly in Penang, Sabah and Sarawak, adding that even Singapore was badly affected.

Based on feedback received from China, Dr Ng said that multinational companies there were instructed to avoid unnecessary travel.

Prior to the attacks, Dr Ng said the industry performed well as tourist arrivals from China totalled 351,485 between January and August compared to 341,133 for the same period last year.

Dr Ng said that total tourist arrivals numbered 9.5 million in the first eight months of this year compared to 6.6 million last year.