PETALING JAYA: Malaysia’s hotel industry is preparing for a potential surge in demand following the return of Formula 1, with operators reporting early hotel enquiries from international travellers ahead of the race at the Sepang International Circuit.
Malaysian Association of Hotels president Datin Christina Toh said confirmation of the Formula 1 race has led to an increase in hotel enquiries, particularly around Sepang, with demand also expected to spill over to Putrajaya, Cyberjaya and Kuala Lumpur.
“Malaysia’s hospitality industry is well prepared to accommodate additional visitors, supported by a mature hotel ecosystem, sufficient room capacity across the Klang Valley and strong transport connectivity.
“While hotels closest to the circuit are expected to record the highest occupancy, the wider region has sufficient capacity to meet demand.”
Toh said hotel rates will depend on market demand and availability, with operators expected to adopt dynamic pricing.
Meanwhile, Malaysia Budget and Business Hotel Association national president Dr Sri Ganesh Michiel said it is still too early to determine whether hotels have recorded a significant increase in bookings as the announcement was recent.
He said demand is expected to pick up gradually once international visitors and domestic fans finalise their travel plans.
“From a tourism perspective, we hope overseas visitors will stay longer, spend more and explore Malaysia beyond the race weekend,” he said.
Ganesh said Malaysia has the experience and capacity to host visitors for the Formula 1 race, adding that transport links between hotels and the Sepang International Circuit would be among the key challenges during the race weekend.
He added that the return of Formula 1 presented an opportunity for hotels to improve occupancy, average room rates, and profitability following years of rising operating costs.
Ganesh said hotel rates will remain market-driven and vary according to demand and room availability, with rates shown on online travel agencies could vary due to promotions, platform discounts and pricing algorithms.
He also advised travellers to compare these rates with those offered directly by hotels before making reservations.
Ganesh said the success of Formula 1’s return should be measured not only by attendance figures or hotel occupancy levels, but also by the wider economic benefits generated for tourism operators and the local economy.
Malaysia will host the Formula 1 Gulf Air Bahrain Grand Prix from Oct 2 to 4, having last hosted the event in 2017.
