To countervail the plunge in occupancy due to the Severe Acute Respiratory Syndrome (Sars) outbreak, hotels here have been urged to offer discounted rates and interesting packages to local tourists.

Ministry of Culture, Arts and Tourism secretary-general Sharil Saat said today that some hotels o­nly have occupancy rates of five to six rooms.

He added that during March and April, the sector faced a greater drop in occupancy rate.