Penang is ending the year on a high note, with strong hotel occupancy, packed attractions, and heavy traffic underscoring the island’s continued appeal as a top holiday destination during the year-end school break and Christmas period.
Penang has once again proven its enduring appeal as one of Malaysia’s most popular holiday destinations, recording robust hotel occupancy rates and a surge in visitor numbers during the ongoing school holidays and Christmas celebrations. Industry players and state officials say the strong performance reflects Penang’s reputation as a family-friendly destination that continues to draw both domestic and international travellers, even amid growing competition from new hotel openings.
According to the Penang Malaysian Hotel Association (MAH), and as reported by Bernama, occupancy rates across the state during the school holiday period and the Christmas weekend have ranged between 70 and 90 percent. MAH chairman Datuk Tony Goh said the figures point to a healthy tourism environment, particularly during peak travel periods, despite a noticeable increase in hotel supply in recent years.
On weekdays, average hotel occupancy in Penang stands at around 70 percent, a level Goh described as stable and encouraging. He acknowledged that the opening of new hotels across the state has placed some pressure on weekday bookings, but noted that demand continues to hold up well, especially during festive and holiday periods.
He added that the Christmas season and the current long weekend have brought a clear uptick in room bookings, with urban and resort areas seeing the strongest gains. Locations such as George Town and Batu Ferringhi, in particular, have recorded significantly higher occupancy levels compared with normal days, driven by both local holidaymakers and visitors from other states.
Looking ahead, Goh said the hospitality sector is poised for further growth, with several new hotels expected to begin operations next year. These additions are expected to strengthen Penang’s tourism ecosystem by offering visitors a wider range of accommodation choices, while supporting the state’s long-term ambition to remain competitive as a regional travel hub.
Beyond hotels, major tourist attractions across the island have also seen a sharp increase in footfall since the school holidays began last Friday. State Tourism and Creative Economy Committee chairman Wong Hon Wai said popular sites have experienced sustained visitor interest throughout the festive period.
Bukit Bendera, one of Penang’s most recognisable landmarks, continues to be a major draw. Wong said the hill resort recorded more than 30,000 visitors between December 19 and 22 alone, highlighting its ongoing popularity among both local and foreign tourists.
He noted that Penang’s appeal goes beyond its scenic attractions. The state remains well known for its culinary offerings, with iconic local dishes such as nasi kandar, laksa, and char kuey teow continuing to rank among visitors’ top experiences. This combination of food, heritage, and natural attractions has helped Penang maintain a strong and distinctive tourism identity.
However, the influx of visitors has also brought challenges, particularly on the roads. Surveys conducted around George Town and Batu Ferringhi have found increasing traffic congestion, especially along key routes leading to major attractions and shopping centres. Many of the vehicles on the roads during peak hours were reported to bear registration plates from other states, reflecting the high volume of out-of-state visitors.
Congestion has also been observed at several major intersections and along coastal roads, particularly during peak travel times. Authorities believe the situation is directly linked to the extended holiday period, which includes school holidays, Christmas celebrations, and associated festive events.
The pressure on Penang’s transport infrastructure is expected to continue into the coming weeks. Bernama previously reported that more than 2.2 million vehicles are projected to enter Penang during the end-of-term school holidays and Christmas period, which began on December 23. The estimate is based on trends observed during previous festive seasons and is further amplified by the ongoing Penang Festival, which runs from December 6 to January 10, 2026.
While traffic congestion remains a concern, tourism stakeholders say the overall picture is a positive one for the state. Strong visitor numbers, healthy hotel occupancy, and sustained interest in Penang’s attractions point to a resilient tourism sector heading into the new year.
As the festive season continues and Penang prepares for a busy start to 2026, industry players are hopeful that careful planning, improved traffic management, and continued investment in tourism infrastructure will help ensure the island remains both welcoming and accessible for visitors, while preserving the quality of life for residents.
