PENANG must move beyond measuring tourist arrivals and place greater emphasis on the value each visitor generates, Chief Minister Chow Kon Yeow said.
During his speech at the Penang Hoteliers Association (PHA) 69th anniversary dinner at St Giles Wembley Hotel tonight, Chow said attracting visitors is only the first step, stressing that the real objective is to maximise economic benefits across the tourism ecosystem.
“For Penang, the priority is clear; we must move from measuring visitors to measuring visitor value.
“Bringing people here is necessary, but it is only the start. What matters is what visitors do after they arrive, how long they stay, what they experience and how their spending circulates through our economy,” he said.
Chow pointed out that Penang has been collecting data on tourist arrivals, hotel occupancy and tourism receipts, but the next challenge is to better connect these insights to understand how visitor spending benefited various sectors.
He said this will help policymakers gauge the economic impact on hotels, restaurants, attractions, retailers, transport operators, tour guides, cultural practitioners and small businesses.
Describing hotels as a key component of the tourism value chain, Chow said accommodation providers play a much larger role than simply offering rooms to visitors.
“A hotel is not only where a guest sleeps, but it is a gateway to the destination.
“The recommendations a hotel makes, the experiences it promotes, and the partnerships it builds can encourage a longer stay, open up new parts of Penang to visitors, and turn first-time guests into repeat visitors,” he said.
Chow also called for stronger collaboration among tourism stakeholders to create a more seamless and memorable visitor experience.
He said efforts should focus on improving wayfinding, coordinating promotional activities, adopting digital tools, enhancing frontline training and encouraging greater visitor spending within local businesses and supply chains.
At the same time, he highlighted the importance of strengthening Penang’s meetings, incentives, conferences and exhibitions (MICE) sector to attract higher-value business events and support hotel occupancy throughout the year.
On Visit Malaysia Year (VMY) 2026, which has been extended into 2027, Chow said the tourism industry should use the opportunity to assess the campaign’s effectiveness and identify areas for improvement.
“With VMY 2026 now extended into 2027, I believe we should take stock of what has worked, where we can do better and how we can make the next phase more effective.
“I would welcome a constructive discussion on the campaign’s performance and outcomes – not simply to review the past, but to strengthen what comes next,” he said.
Chow added that Penang is well positioned to serve as the international gateway to the northern region, working alongside neighbouring states to promote heritage, gastronomy and nature-based tourism experiences.
“Penang can be the international gateway to a wider northern experience, while the hotel industry can be one of the key partners in making that proposition real,” he said.
He also praised PHA on its 69th anniversary and said he was confident the association will continue to play a significant role in shaping the future of Penang’s tourism industry.
Tourism Malaysia deputy chairman Datuk Yeoh Soon Hin called for closer collaboration between the hospitality industry, tourism operators and the state to further strengthen Penang’s tourism sector.
He acknowledged the vital role played by PHA, adding that the association has consistently served as an important bridge between the industry and the government by representing the views of hoteliers and contributing to the development of Penang’s tourism and hospitality sector.
“The association has consistently represented the views of hoteliers and contributed significantly to the development of Penang’s tourism and hospitality sector,” he said.
Yeoh also stressed that hotels are more than simply places for tourists to stay, as the quality of hospitality can shape visitors’ overall impressions of Penang and Malaysia.
State Tourism and Creative Economy Committee chairman Wong Hon Wai lauded the significant contribution of PHA to the state, pointing out that the association has reached this milestone.
“PHA and the state’s tourism industry are inseparable and deeply interconnected,” he said, adding that Penang’s hotel industry is set to enter a remarkable peak period with the upcoming National Day celebrations.
PHA chairman Foong Hon Beng said the association will continue to work closely with the state and other industry partners to make Penang a more competitive and internationally recognised destination.
Also in attendance were Tanjong MP Lim Hui Ying, who is the Deputy Minister of Women, Family and Community Development, Pengkalan Kota assemblyman Wong Yuee Harng, Komtar assemblyman Teh Lai Heng, Malaysian Association of Hotels (MAH) Penang chapter chairman Datuk Tony Goh, MAH vice-president Datuk Khoo Boo Lim, PHA Life Executive adviser Datuk Lim Mee Lee and organising chairman Allen Loh.
Story by Edmund Lee
Pix by Noor Siti Nabilah Noorazis