Penang hotels gear up for high occupancy amid festivities

Penang hotels are poised to experience occupancy rates exceeding 90% in the coming months, according to Chief Minister Chow Kon Yeow.

This surge is attributed to major festivals like Chinese New Year, Thaipusam, and the school holidays.

Domestic tourists returning home for celebrations and holidaymakers exploring the state are expected to fuel this rise.

Adding to the excitement, Malaysia’s chairmanship of ASEAN this year brings key high-level meetings to Penang, further boosting the need for hotel accommodations.

“Hotels will play an important role in housing foreign dignitaries as well as their staff,” Chow said during the launch of the Lyf Hotel by Ascott on Farquhar Street on 15 January.

Hotel taxes and restoration efforts

Penang City Council Mayor Dato’ A Rajendran revealed plans to potentially raise hotel taxes by up to 50%, though no timeline has been confirmed.

Currently, the council charges RM3 per night for four-star hotels and RM2 for hotels rated three-star and below.

Chow highlighted that taxes collected are reinvested into tourism-related activities, such as promotion and minor infrastructure upgrades.

He also emphasised the importance of preserving Penang’s heritage buildings.

“If we don’t save dilapidated buildings, many will collapse,” he said, citing the newly opened Lyf Hotel as a prime example of successful restoration.

The Chief Minister underscored the significant progress made since George Town’s listing as a UNESCO heritage site, which has catalysed restoration efforts over the past decade.

Direct flights strengthen tourism links

Penang’s tourism received a major boost with the launch of a direct flight between Chennai and Penang by IndiGo Airlines.

Inaugurated on 21 December, this connection is a game-changer for travellers from northern Malaysian states, providing seamless transit to Tamil Nadu, according to State Tourism and Creative Economy Committee Chairman Wong Hon Wai.

During the 11th Annual Global Organisation of Tamil Origin (GOTO) Meet, Wong highlighted the deepening cultural and economic ties between Penang and Tamil Nadu.

He noted that Tamil Nadu is the second-largest contributor to Indian tourism in Malaysia, with the country welcoming over 1.01 million Indian visitors last year—a 47% increase from 2019.

This flight positions Penang as a key destination for Indian travellers, enhancing its reputation on the Indian tourism map.

With festive celebrations, ASEAN events, and stronger international connectivity, Penang’s tourism industry is set for a promising year.

The state’s commitment to preserving its heritage and enhancing visitor experiences ensures its appeal to both local and international tourists.