THREE months after Malaysia reopened its borders, Singaporeans are thronging to Penang’s tourist destinations again, especially on public holidays.

Malaysia Budget & Business Hotel Association Penang executive consultant Lim Mee Lee said Singaporean tourists have not only been heading for Johor and Kuala Lumpur but also going up further north to Penang.

He said it could be part of “revenge tourism” after two years of pandemic lockdowns, and welcomed the development as tourists from other countries are still scarce.

While Malaysians have been actively going on domestic holidays since interstate travel was allowed, it is still foreign tourists that bring in higher revenue.

“Although the country’s borders have reopened, there are still not many foreign tourists. Singaporeans are filling this gap. After all, the exchange rate is favourable for them, and they are close by,” Lim told The Malaysian Insight.

Their arrivals have put Penang hotels on the “recovery stage”, he said, with occupancy rates as high as 80%, especially for those located by the sea.

There have been several public holidays, school holidays and long weekends in recent months, and it is also durian season on Penang island’s Balik Pulau side, which draws tourists who love the fruit.

“So I am optimistic about the prospects of the hotel industry in the second half of this year due to these developments,” Lim said.

Penang and Province Wellesley Café Association president Tan Kar Seong agreed, putting business recovery for the food and beverage sector in Penang at about 70%.

“However, it is not the same for all stores, though. To my observation, the ones that do really well know how to use social media to attract tourists,” he said.

Tan said the trend now is for people to search for food recommendations through the internet, so it is important for businesses to be savvy in this area of marketing.

He said apart from Singaporeans, tourists from Indonesia and Thailand are also visiting Penang in growing numbers.

“It may be some time before tourists from further away come to Malaysia. At the moment, most of them are from neighbouring countries,” he said.

“Indonesian tourists have favoured Penang even before, for medical tourism, while Singaporeans come for leisure and enjoyment. Because the ringgit is weak, they are more willing to spend.”

Vinah Yee Yook Chee, who heads the local Chinese coffee shops and restaurants group, Persatuan Restoran & Kedai Teh Koo Soo Kwong Choon Tong Pulau Pinang, said Singaporeans with family and relatives in Penang are visiting and eating out to make up for the time spent apart during the pandemic.

“I’d say business is at 90% volume for coffee shops and tea houses. People are catching up with their children, grandchildren and in-laws after not being able to visit from Singapore the last two years.”

Yee also feels tourists are frequenting coffee shops more than expensive eateries as they are still careful with their spending.

Additionally, rising costs for ingredients and shortages of some items are also affecting food and beverage operators.

“Operators are trying to adjust their menus and prices. Initially, they anticipated a 15-20% increase in costs, but now things are up by 40%,” said Yee. – June 22, 2022.