Penang MAH worries over too many hotels and too little guests next year

THE PENANG chapter of the Malaysian Association of Hotels (MAH)'s wishes for the New Year revolves around the approval of new hotels – this over concerns that there may be a glut.

This is despite reports of a higher arrival of tourists this year.

Another wish is for operating costs to be mitigated as many operators continue to suffer from an acute shortage of trained staffers and a reliance on foreigners, who may not be in-sync to the warmth hospitality of Malaysians.

The complain is the inability of some foreign staffers to converse in English or Bahasa Malaysia, as well as Mandarin and Arabic.

Utility charges and assessment rates also figure as worrying factors for hoteliers to manage, especially with next year being declared as a "Visit Malaysia Year 2026."

They are hoping for reasonable commercial tariffs to be offered by Tenaga Nasional Berhad while for the tourism authorities to promote the state through tourists' tax imposed by them on hotel guests.

The campaign is the first initiated by the Ministry of Tourism, Arts and Culture  (MOTAC) after the dreaded Covid-19 years, which saw many hotels and resorts closing down either permanently or temporarily.

According to various reports, Penang has a growing number of hotel rooms, with estimates around 22,500 registered rooms as of mid-2025, though the figures vary slightly (17,000 by Penang MAH in May 2025).

There is estimated to be 13 new hotels between 2023-2025 adding over 2,300 rooms, with more planned.

This is despite concerns over the illegal homestays and short-term stay accommodation which goes unregulated by the local authorities.

Hoteliers said that they are grateful to Tourism Malaysia and the state government for attention devoted to growing tourism.

But more efforts need to be undertaken to arrest the emergence of illegal homestays and a need to regulate those defined under the Airbnb segment, while a comprehensive audit is needed to define the market demand for rooms.

Some hoteliers also sought to promote inhouse food and beverage (F & B) treats to complement the standing of Penang as a street gastronomic national haven.

They also want new crowd-pulling events to complement the existing ones the state.

Penang MAH chairman Tony Goh wished inhouse guests and diners the best of seasonal greetings and hope they can enjoy their stay and food while in Penang.

In 2024, hotel data released publicly showed some 8.2 million guests stayed in various accommodations in Penang, with the boom attributed to the return of tourists from China, India and the Middle East.

Traditional markets from Europe and  USA, also showed an increase but not as dramatic as the numbers coming in from China and India.

Among the hotels opened this year were The Millen Penang, Autograph Collection,

M Social Resort Penang, Parkroyal Gurney Bay, Marriott Hotel Penang, The Iconic Marjorie Hotel and Holiday Inn & Suites Penang Prai.

Hotels scheduled to open next year are The Westin Hotel and Residences Penang: A 217-room hotel in Gurney Drive, expected 2026, Capri by Fraser Penang: A stylish, tech-savvy hotel on Magazine Road, soft opening January 2026, Le Meridien Penang Airport Hotel: Located near the airport, expected late 2026, Harris Hotel Conventions Sunshine Penang: Set for a January 2026 soft opening, JdV by Hyatt: The first in Malaysia, Opening at The Light City and Galaxy Minyoun Penang: A Chinese brand's Southeast Asian debut, at The Light City. - December 11, 2025.