KUALA LUMPUR, MALAYSIA: Hoteliers are worried about being "wiped out" by the government's decision not to hold functions at hotels, unless they were international events.

Malaysian Association of Hotels president Datuk Mohd Ilyas Zainol Abidin said up to 70 per cent of events at hotels were from the government sector.

"The government can scale down their events but to stop coming to us will wipe some of us out."

Speaking after the association's annual dinner last night, Ilyas said the government should consider "repackaging" its hotel events.

"For instance, instead of using a four-star hotel, the event could be held at a three-star hotel.

"Or, instead of giving each participant a room, let them share rooms."

He said in times of rising costs, the government should help the hotel sector.

Tourism Minister Datuk Seri Azalina Othman Said, who was at the function, agreed that the hotel industry needed help.

Azalina added: "I am concerned as hoteliers have invested a lot. I hope a solution can be found."