Property consultant Knight Frank said it expected Kuala Lumpur’s hotel occupancy to reach 75% by late 2023, after it recorded a rise since the start of this year, reaching 60% in August.

“We expect the recovery in the Malaysian hotel market to continue in 2023 as the demand outlook is strong.

“On the supply side, KL’s existing hotel stock of 47,500 is forecast to grow by 9% over the next three years, and about 60% of this new supply will be in the luxury and upper upscale segments which are currently under-represented,” it said in a statement today.

It attributed the projected rise in hotel occupancy to Malaysia’s status as a well-known gastronomic hotspot in Southeast Asia as well as for its culture, museums, rain forests and islands as tourist attractions.

Knight Frank also noted the increasing international passenger traffic volume to KLIA as a positive sign for the country’s tourism and hospitality prospects, with international passenger traffic volume averaging a month-on-month growth of 27% since the start of the year.

“This was boosted by the complete removal of border restrictions, improving flight connectivity and easing of regional travel restrictions,” it said.

It said KLIA received 1.64 million international travellers in September, and the figure was expected to rise when China eventually lifts its travel restrictions.