FORMULA One's long-awaited return to Malaysia is delivering an early boost to the hospitality sector, with hotels in Sepang and Putrajaya reporting strong occupancy ahead of the Gulf Air Bahrain Grand Prix at Sepang International Circuit (SIC) this October.
The surge in reservations has reinforced industry calls for Malaysia to aggressively pursue more world-class sporting and lifestyle events, with tourism stakeholders arguing that such spectacles provide significant economic benefits extending well beyond race venues.
Malaysian Association of Hotels vice-president Cs Lim said an initial survey showed several hotels in Sepang were already fully booked, while others were recording exceptionally strong demand.
"It is really good news. Based on our initial survey of hotels in Sepang, bookings are very strong and some hotels are already fully booked for that period," he said.
Hotels in neighbouring Putrajaya are also experiencing brisk demand as visitors move early to secure accommodation before room rates rise, particularly at three, four and five-star properties.
The Gulf Air Bahrain Grand Prix will be held at Sepang International Circuit from Oct 2 to 4, marking Formula One's return to Malaysia for the first time since the Malaysian Grand Prix was discontinued in 2017.
Lim said the event's economic impact would extend beyond Sepang, driving hotel occupancy throughout the Klang Valley.
"There is nothing spectacular but events organised by the Tourism, Arts and Culture Ministry and Tourism Malaysia have helped. During major events in Kuala Lumpur, hotels in surrounding areas also performed well, particularly with the success of the inaugural Rain Rave Water Music Festival," The Star reported him saying.
He added that while hotel performance during the first half of the year had remained generally stable, major events had been the primary driver of stronger occupancy rates.
Malaysian Association of Hotels Kuala Lumpur chapter chairman BE Lim said hotels in the capital were also beginning to experience increased bookings ahead of the race weekend.
"Hotels in Kuala Lumpur are slowly filling up, although the pace is uneven. However, we expect occupancy to improve in the weeks to come as the trend is already there," he said.
The return of Formula One is expected to generate widespread economic spillover, benefiting hotels, transport operators, restaurants, retailers and other businesses across Kuala Lumpur, Sepang, Putrajaya and Cyberjaya as teams, international visitors and high-spending spectators arrive for the race.
Checks on hotel booking platforms indicate accommodation around Sepang is becoming increasingly scarce for the Oct 2 to 4 race weekend, with several properties already fully booked and many others offering only limited remaining inventory.
Sama-Sama Hotel KL International Airport and Marriott Putrajaya were listed as fully booked, while premium rooms at Tune Hotel KLIA-KLIA2 were largely unavailable. Other prominent properties, including Zenith Hotel Putrajaya, Pulse Grande Hotel, Dorsett Putrajaya and Le Meridien Putrajaya, also showed limited availability.
Malaysian Association of Tour and Travel Agents (MATTA) president Nigel Wong said major international sporting events such as Formula One, motorsport competitions and marathons were powerful tourism drivers capable of attracting overseas visitors while stimulating domestic travel.
"Events are a great way to get people from one place to another. This applies to the domestic tourism market as well," he said.
He said such events created broad economic opportunities by boosting demand for accommodation, transport, food and beverage services and other local businesses, while encouraging Malaysians to travel beyond traditional leisure destinations.
Wong said MATTA would work with its members to develop customised travel packages for visitors attending major events, similar to the association's seasonal durian tourism packages.
"The government should work closely with the private sector to encourage more world-class events to be held in Malaysia," he said.
He added that MATTA was collaborating with BASE Association Malaysia to organise an international BASE jumping competition in Kuala Lumpur next year.
"There are other types of sports that have not been held in Malaysia, or have not been held here for some time. These kinds of sporting events will be very beneficial to us," he said. - August 4, 2026
