HOTEL occupancy rates in Penang have surged to about 90% during recent long weekend holidays, driven strongly by domestic travel demand, according to Malaysian Association of Hotels (MAH) Penang chapter chairman Datuk Tony Goh.
He said the domestic tourism segment continues to be the main pillar supporting Malaysia’s hotel industry, particularly during weekends and public holiday periods when occupancy levels consistently reach around 90 per cent.
“During long holidays, we are seeing occupancy hitting 90 to 100 per cent as other destinations like Hatyai are full,” he said.
Goh noted that despite earlier concerns over pricing pressure, last-minute bookings have remained strong, helping hotels maintain stable performance.
Goh added that the hotel sector remains highly dependent on domestic tourism, alongside government events and corporate travel, which continue to form key demand drivers.
“At the moment, we are getting about 60 to 70 per cent from our own domestic base,” he said, adding that sentiment had previously been cautious amid geopolitical uncertainty, including tensions in the Middle East.
However, he said consumer spending has remained resilient despite external pressures, supporting the view that domestic tourism demand is still intact.
He also noted that Chinese tourist arrivals are still contributing to the market, providing some additional support to inbound recovery, although domestic travel remains the dominant driver.
“We wouldn’t say the industry is doing exceptionally well, but demand is holding up,” he said, adding that current conditions are giving the sector some breathing space after periods of uneven performance.
Story by Edmund Lee
Pix by Law Suun Ting