PETALING JAYA: With Chinese New Year just around the corner, Malaysia’s tourism and retail sectors are gearing up for a busy festive period, as industry players report stronger visitor flows, higher hotel occupancy and upbeat consumer spending.
Licensed hotels in smaller towns and secondary cities are projected to see a sharp increase in occupancy, while retailers expect the positive momentum to extend through Ramadan and peak after Hari Raya Aidilfitri.
Malaysian Tourism Federation president Dr Sri Ganesh Michiel said overseas promotion efforts under the Visit Malaysia 2026 campaign by the government and Tourism Malaysia are already yielding results.
Ganesh, who is also president of the Malaysia Budget and Business Hotel Association, said member hotels are seeing a clear uplift ahead of the festive season.
“Occupancy during Chinese New Year is increasing by about 50%,” he said, adding that the trend is more pronounced outside major city centres.
“It’s mainly outside the big cities. Smaller cities across all states are seeing increases, especially destinations such as Penang and Johor. The growth is clearly there,” he said.
Ganesh added that regional visitors from countries where Chinese New Year is observed as a public holiday are expected to continue choosing Malaysia as a preferred destination.
Malaysia Retailers Association president Datuk Andrew Lim said the combination of domestic shoppers and regional visitors is already translating into stronger sales across the sector.
“We are seeing a boost during Chinese New Year. December and January were already good months, and we expect February to be positive as well. From Chinese New Year through Ramadan, sales have been very encouraging,” he said.
He said a more pronounced increase in foreign visitor spending is likely after Hari Raya Aidilfitri, when more people are able to take longer holidays, adding that Malaysians remain a key driver of retail growth, supported by overseas visitors during peak travel periods.
Lim said visa facilitation, Malaysia’s tropical climate and its value-for-money appeal are attracting more visitors from China, Europe and Australia, many of whom prefer to holiday in Asia rather than return to colder home countries.
“We are optimistic that Visit Malaysia 2026 will provide an additional boost and help us end the year on a strong note,” he said, adding that mega events and street festivals could further lift spending if they are targeted at the right market segments.
Meanwhile, Malaysian Association of Tour and Travel Agents president Nigel Wong said visitor arrivals during the Chinese New Year period are expected to remain healthy, supported by a steady year-round flow of tourists.
“Arrivals have been quite consistent. Malaysia targets multiple demographics, and because of that, we see a more stable stream of inbound visitors regardless of festive seasons,” he said.
He added that while Chinese New Year remains an important travel period, Malaysia is increasingly benefiting from a broader mix of source markets and travel purposes throughout the year.
“The most important thing is for the Visit Malaysia 2026 campaign to be long term, not just focused on this year. We expect to see innovation, creativity and upgrades to service infrastructure to meet immediate demand, and this should continue as part of a sustained strategy rather than a one-off effort,” he said.
