GEORGE TOWN: Hotel room occupancy rates are expected to exceed 90% in the next few months, according to Penang Chief Minister Chow Kon Yeow.
He attributed this to upcoming festivities such as Chinese New Year, Thaipusam and the school holidays.
Chow added that he expects an increase in domestic tourism as many from outside the state will return to celebrate the festivals, while those taking advantage of the holidays will take the opportunity to visit Penang.
“Furthermore, let’s not forget that this year Malaysia chairs the Asean Business Advisory Council. Several key high-level meetings are to be conducted in Penang,” he said during the launch of Lyf Hotel by Ascott at Farquhar Street on Wednesday.
“Hence, hotels will play an important role in housing foreign dignitaries as well as their staff.”
Also present during the launch were Penang Island Mayor Datuk A. Rajendran, Elevate Heritage managing director Datuk Yeoh Yih Sean, Oriental Holdings executive chairman Datuk Loh Kian Chong, BSG Property Sdn Bhd executive director Datuk Yaep Chin Yee, and Oriental Holdings former directors Datuk Lim Kean Seng and Datuk Tan Hui Jing.
Meanwhile, Rajendran told reporters after the launch that the council is considering raising taxes on hotel stays.
“We have been considering it for some time now, but we have not determined the actual increase,” he said, adding that the hike would be in the range of 50%.
The council currently charges a tax of RM3 per night for four-star hotel stays and RM2 for hotels that are three-star and below.
Chow said the taxes collected on hotel stays are “mostly channelled back to tourism-related activities” like promotion, marketing and advertising, apart from minor infrastructure upgrading.
“I have not wavered from the stance that I made since 2008. We need to save dilapidated buildings. That is our first challenge. If we don’t save them, a lot of buildings will collapse,” he said.
Chow added that there has been a lot of restoration and refurbishment works over the past decade, especially after George Town was listed as a Unesco heritage site.
“This is one very good example of a long-abandoned garage building. It has now been injected with new life,” he said, referring to the Lyf Hotel.
On another matter, State Tourism and Creative Economy committee chairman Wong Hon Wai lauded the direct flights between Chennai and Penang as a game-changer for Penang’s tourism industry during the 11th Annual Global Organisation of Tamil Origin Meet held on Jan 4 and 5.
Chennai-Penang direct flights by IndiGo Airlines started on Dec 21.
Wong described the new connection as “a gateway for travellers from northern states such as Perak, Kedah and Perlis,” allowing seamless transit through Penang to Chennai.
The flights are expected to deepen cultural and economic ties between Penang and Tamil Nadu, which Wong said was the second-largest contributor to Indian tourism growth in Malaysia.
With Malaysia welcoming over 1.01 million Indian visitors last year, marking a 47% increase from 2019, Wong said the direct flights position Penang as a premier destination for Indian tourists.
