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RISING international airfares are prompting more Malaysians to holiday at home, pushing hotel occupancy nationwide towards an average of 70% during the extended National Day and school holiday break.
The travel period, which runs from Aug 28 to Sept 7, has generated strong demand for domestic destinations as families look for more affordable alternatives to overseas holidays.
Malaysian Association of Hotels (MAH) vice-president CS Lim said booking levels varied across the country, with leisure destinations recording the strongest demand.
Negeri Sembilan is leading the country with occupancy above 80%, driven by strong demand for resort properties in Port Dickson.
Promotional campaigns jointly organised by MAH, Tourism Malaysia and online travel agencies have helped boost bookings, particularly for coastal resorts.
Most states in Peninsular Malaysia are recording occupancy of about 70%, while Kedah, Kelantan, Melaka, Sabah and Sarawak currently have reservations below 60%.
Lim said travel during the holiday period was predominantly leisure-focused, with hotels expecting another wave of last-minute bookings.
The extended break also coincides with a special state holiday in Selangor following the state’s overall championship victory at the 2026 Malaysia Games (Sukma), potentially giving domestic tourism another boost.
Malaysian Association of Tour and Travel Agents (MATTA) president Nigel Wong said higher global airfares, partly influenced by the ongoing Middle East conflict, had made overseas travel increasingly expensive for Malaysian households.
As a result, more families are turning to domestic destinations for shorter and more affordable breaks.
West Coast road trips remain among the most popular options, with Penang, Ipoh and Melaka attracting families seeking staycations, theme parks and glamping experiences.
Sabah and Sarawak continue to appeal to travellers seeking outdoor and nature-based experiences, although high airfares remain a constraint for visitors from Peninsular Malaysia.
Wong said about 70% of domestic travellers were favouring shorter, budget-conscious holidays, with Kota Kinabalu, Langkawi and Kuantan among the preferred destinations.
He expects domestic tourism spending to remain resilient through the end of the year, citing strong interest in the domestic segment of the upcoming MATTA Fair from Sept 4 to 6.
The sector is building on strong momentum recorded during the first quarter of 2026, when Malaysia received 74.7 million domestic visitors who generated about RM34 billion for the economy.
With overseas holidays becoming more expensive, industry players expect Malaysians to continue prioritising shorter domestic breaks, supporting hotels, attractions, restaurants and other tourism-related businesses through the remainder of the year. - September 1, 2026