GEORGE TOWN, MALAYSIA: The state government has denied claims that the number of tourists coming to Penang has dwindled.

State Tourism Development Committee chairman Law Heng Kiang said he did not know where the Malaysian Association of Tour and Travel Agents (Matta) Penang chapter vice-chairman Johari Shafie got his figures of tourist arrivals dropping from an average of 200,000 a month to 40,000.

Law said contrary to Johari's statement, hoteliers here had given feedback that their rooms were either fully booked or between 80 and 90 per cent booked.

"In July and August, you will not be able to book hotel rooms in Batu Feringghi as well as the town area, as the Middle Eastern holiday makers are making their way here," he said.

Law was speaking after welcoming about 2,100 Australian tourists who arrived in a cruise liner at the Tanjung City Marina yesterday for a one-day tour of the island.

He noted that there may be a slowdown in September but added that from October onwards until the Chinese New Year holidays hotels have been fully booked.

On Matta's threat to stop their services due to heavy losses suffered following the recent fuel price hike, Law said: "We have helped them indirectly by organising numerous events. For instance, the Prudential convention here from July 18 to 20 will need more than 100 buses for their expected 4,000 participants. For the Penang International Dragon Boat Festival on July 31, we have chartered more than 100 buses for about 4,000 participants."

On a demonstration to be carried out by the service providers, Law said the state government could not stop them if they wanted to demonstrate over their demands.