Visitor arrivals on an upward trend as a result of extended visa-free policies

• According to Malaysia Tourism data, Malaysia welcomed about 11.8 million international visitors in the first half of 2024, representing a 28.9% increase Y-o-Y from 2023.
• The visa-free policy has significantly boosted the number of Chinese tourists visiting Malaysia, marking an increase of 160% compared to the same period last year.

Major anticipated openings for 2024 have been delayed

• As of YTD September 2024, four hotels, representing 1,109 keys, opened in Kuala Lumpur. Supply expanded by 2.3% as a result.
• For the remainder of the year, two new hotels are expected to enter the market, and a number of internationally-branded hotel openings have been postponed to 2025 and 2026.

YTD trading performance anticipated to be another record

• As of YTD September 2024, Kuala Lumpur hotels have registered a significant improvement in average revenue per available room (RevPAR), which can be attributed to an increase in occupancy and rates from heightened tourist demand.
• The hotel capital market in Malaysia was quiet in the second quarter as no major transactions were completed.

Outlook: Kuala Lumpur poised to capture both leisure and corporate demand

• The Malaysia Airports group has made intensive efforts to increase flight frequency and introduce new flight routes through a collaboration with international airlines.
• Corporate demand and MICE continues to ramp up owing to new office developments such as the TNB Gold, Oxley Towers and PNB Project 1194.