Penang tourism sector on strong rebound after Covid-19 pandemic

HOTEL occupancy rates for Penang in March were reportedly higher than the national average, said state tourism committee chairman Wong Hon Wai (Paya Terubong - PH).

He told the state assembly that the average occupancy in that month was 61.3% while the national average was 50.6%.

According to the Malaysian Association of Hotels (MAH) Penang chapter, there are about 17,000 registered hotel rooms in the state.

Wong says there was about 2,000 additional rooms within the last two years, as investors see the potential in establishing hospitality properties in the state.

Wong said that Penang Hill, which is arguably the top tourism landmark here, also recorded a 3.4% increase in tourists last month.

Some hoteliers in Penang had expressed concerns that there may be a glut in rooms considering the poor occupancies registered during the Hari Raya Eid Fitri break.

Wong told the state legislative assembly sitting that with the uncertainty generated from the punitive tariffs imposed by the United States on imports, the services sector of which tourism is dominant, can become an engine of growth for the state.

"After the painful flow from the pandemic, the leisure industry is gradually rebounding.

 According to data provided by Tourism Malaysia, a total of 8.230 million tourists stayed in major hotels at Penang last year, an increase of 28.9% compared to 6,389,996 tourists recorded in 2019.

The industry is gradually recovering and there is a strong growth momentum.

Wong said that Penang MAH has also pointed out that the return of Chinese tourists has injected a shot in the arm for the industry.

"Data shows that Chinese tourists usually stay in three to five - star hotels in Penang for about two nights, mostly traveling as families or friends, rather than traditional large tour groups.

“From December 2023, the occupancy rate of most hotels has recorded double-digit growth. Currently, the three major source countries of tourists to Penang are Indonesia, China and Singapore."

Wong also pointed out that the state is now fully leveraging off social media.

According to the latest data analysis, Penang is far ahead in terms of overall topic views and discussions on major Chinese social platforms such as Xiaohongshu, Douyin, WeChat, and Weibo, demonstrating its growing tourism popularity.

On the Xiaohongshu platform, the topic #Penang has accumulated 800 million views and 3.943 million discussions.

Related tags such as #PenangFood (310 million views), #PenangStore (250 million views), and #PenangCheck-in (150 million views) have all exceeded 100 million views.

"We also used another tourism city in Malaysia as a comparison. The topic #Malacca has 280 million views, which is only about one-third of Penang."

Wong also disclosed that there are now 14 international scheduled direct flights to Penang, excluding chartered flights.

"This achievement marks the continuous expansion and improvement of Penang's international aviation network and also brings continuous momentum to the state's tourism industry and economic development."

Wong also touched on the reopening of the landmark Fort Cornwallis, once the moat addition is fully completed.

There is also the Gurney Bay phase II project, where there are plans to upgrade the seaside recreational park as a major green lung for the state.

The planning of the second phase of covers several important facilities, including a multi-level car park, North Vantage Point, Water Taxi Jetty, Beach and Boardwalk, Water Garden, Open Carpark and a Storm Water Channel.

This comprehensive development plan not only embodies the concept of ecological and urban integration, but will also greatly enhance Penang’s image as an international city that is suitable for tourism and quality living, Wong said. - May 22, 2025.