Visa-free initiatives result in Kuala Lumpur recording strong visitor arrival growth

• According to Malaysia Airports (MAHB), between January and November, Malaysia Airports reported that the country welcomed 22.5 million tourists, surpassing 2023’s total of 20.1 million.
• Singapore was the top source market with over 8 million visitors, followed by Indonesia with 3.2 million arrivals, and China with more than 3 million arrivals.

Delayed major openings expected to come into fruition in 2025

• A total of 1,640 rooms entered the market in 2024, mostly concentrated in the Greater KL areas such as Bangsar and Pudu. Notable openings include the Crowne Plaza Kuala Lumpur and the Hyatt Centric City Centre.
• For 2025, JLL expects another 3,180 keys to enter the market. Most of the openings in 2025 are projects that were delayed due to the pandemic.

Record year of hotel trading performance for Kuala Lumpur

• RevPAR has concluded 18.1% higher than 2023, with strong transient demand from FIT travellers and robust MICE demand elevating both ADR and occupancy in 2024.
• In terms of hotel transactions, the only hotel sale of the year was a divestment of a 30% stake in Langham Kuala Lumpur to Kindway Express Limited.

Outlook: Government commits to strengthening Malaysia’s global competitiveness as a tourist destination

• Malaysia has launched ten new international flight routes to regional destinations such as Vietnam, Thailand and India. This will pair well with the extension of visa-free travel to enhance demand from major source markets.
• By 2026, Malaysia aims to welcome 35.6 million international visitors and generate MYR 147.1 billion in tourism receipts.