KUALA LUMPUR: Malaysia's thriving tourism sector, bolstered by
preparations for Visit Malaysia Year 2026 (VMY2026), is expected to trigger a
surge in investment in new hotel developments and refurbishments of existing
properties across major cities, as well as in serviced residences and
short-stay apartments, according to Henry Butcher Malaysia.
Tang Chee Meng, the firm's chief operating officer, noted that the
sector's strong performance in 2025, ahead of VMY2026, has already lifted the
hospitality industry, particularly in states popular with tourists.
"VM2026, with its bold targets and substantial promotions
budget, is expected to benefit the sector and hold/push up the average
occupancy rate and average room rates of the hotels in 2026," he said.
Tang also highlighted that improvements in accessibility, including
the launch of the ETS service between Kuala Lumpur and Johor Baru and direct
flights between Ipoh and Singapore by Batik Air, will further stimulate
domestic and international travel.
As of the third quarter of 2025, Malaysia had 3,645 hotels with a
total of 297,226 rooms, the firm said.
VMY2026 marks the sixth edition of Malaysia's flagship tourism
campaign, following previous editions in 1990, 1994, 2007, 2014 and 2020. The
government has set ambitious targets of 47 million visitors and RM329 billion
in tourism receipts for the campaign year.
Hoteliers are preparing to welcome an anticipated influx of
visitors, supported by a government package of funding, incentives and tax
breaks aimed at boosting tourism-led growth.
Under the 2026 Budget, more than RM700 million has been allocated to
strengthen the tourism sector, with RM500 million directed specifically toward
the VMY2026 campaign, reinforcing tourism's role as a key economic driver.
Corporate tax exemptions and incentives will also be available for
tourism-related income and capital expenditure, including renovations and
upgrades by operators.
Industry players have welcomed the measures as a timely boost.
"The government's efforts to strengthen tourism are a positive
signal for the industry," said Sugumaran Ramachandran, general manager of
the five-star DoubleTree by Hilton Shah Alam i-City.
"We see these developments as part of a broader effort to
create a vibrant and competitive hospitality landscape, and we're committed to
playing our role in that journey," he told Business Times.
Sugumaran noted that for hotel operators, initiatives that support
growth and enhance the overall travel experience are particularly encouraging.
"Our focus remains on delivering exceptional hospitality and
preparing to meet the expectations of both domestic and international
travellers. We continue to align our strategies with long-term goals such as
improving guest experiences, maintaining high service standards, and ensuring
operational efficiency so that we're ready to contribute to Malaysia's tourism
success."
Sugumaran added that the 2026 Budget reinforces confidence in the
sector's growth trajectory, with broader initiatives in sustainability and
technology aligning well with industry trends.
"Innovations like the robot concierge at i-City are a great
example of how technology can enhance the visitor experience. Attractions that
combine convenience with novelty create a sense of excitement and help position
destinations like i-City as modern and forward-thinking. These kinds of
features not only add value for guests but also showcase Malaysia's ability to
embrace smart solutions in tourism," he said.
At the property level, he said the hotel has been investing in
technology and sustainability to meet evolving traveller expectations,
including smart guest solutions, energy-efficient systems and digital
conveniences such as Hilton Honours app check-in and Digital Key access.
Strategically located in i-City – a vibrant hub of theme parks,
retail and corporate offices – DoubleTree by Hilton Shah Alam i-City offers
curated packages for families, MICE events and international visitors.
The hotel has recently secured a renewed 5-star certification from
both Tourism Malaysia and the Selangor State Tourism Board, valid for the next
three years.
Sugumaran said this achievement reflects the hotel's continuous
commitment to excellence and delivering outstanding hospitality experiences
year after year.
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