Hotel occupancy rates in Penang and Sabah are projected to surpass 80% during China’s National Day holiday period, known as Golden Week, which runs from October 1 to 7. This contrasts with a more subdued demand forecast for much of Malaysia during the same timeframe.

According to CS Lim, vice-president of the Malaysian Association of Hotels, Penang and Sabah remain popular destinations for Chinese tourists due to established direct flight connections and their strong appeal. These states are expected to record some of the highest hotel occupancy levels nationwide. Kuala Lumpur and Selangor are also anticipating elevated occupancy rates, buoyed in part by visitors attending the Formula 1 event.

Other states such as Pahang, Sarawak, Negeri Sembilan, and Kedah are forecasted to experience moderate hotel demand, with occupancy estimated between 60% and 80%. Several remaining states may see figures below 60%. In Sarawak, hotel bookings are further supported by the month-long What About Kuching Festival, which takes place during October.

Lim observed that while Golden Week demand is more concentrated in select regions compared to previous years, the overall outlook appears weaker than last year’s. He cited global economic uncertainties as a factor causing travelers to be more cautious with their expenditures. Lim also noted the challenge hotels face in accurately identifying guest nationalities at the booking stage, making real-time assessments preliminary.

Data from Trip.com indicates Malaysia ranks as the fourth most popular international destination for Chinese travelers during Golden Week, following South Korea, Japan, and Thailand. Other favored countries include Singapore, Indonesia, Vietnam, Hong Kong, Australia, and the United Kingdom. Stephane Thong, general manager of Trip.com Malaysia, highlighted Malaysia’s status as one of the top three Southeast Asian destinations alongside Thailand and Singapore. Kuala Lumpur is the leading city for Chinese visitors, followed by Kota Kinabalu, George Town, Tawau, Johor Bahru, Kuala Terengganu, Langkawi, and Sandakan.

Thong also noted an increasing trend among younger Chinese travelers, particularly those aged 18 to 24, showing a growing interest in nature-based holidays, with searches for nature trips rising by 53% year-over-year.

Datuk Dr. Angie Ng, president of the Malaysia Inbound Chinese Association, pointed out that this year’s Golden Week holiday spans two weekends, offering travelers from northern China more convenient options for connecting flights to Malaysia. While early responses have been encouraging, she said many bookings continue to be made last-minute, with the potential for additional reservations in the coming weeks. Ng further observed that Chinese tourists are increasingly favoring travel in smaller groups or family units, a shift partly attributed to the introduction of visa-free travel privileges for Malaysian entry.