Do not lose tourism’s potential property opportunity?

Do not lose tourism’s potential property opportunity?

I read this insightful Article in theedgemalaysia.com. Let me share some numbers. Tourism contributes about 15 percent to the GDP (2024) and is usually one that multiplies spending faster than most sectors. More than RM700 million has been set aside for tourism, including RM500 million for Visit Malaysia (VM) 2026.

Crucially, domestic tourism has become a powerful engine for the visitor economy. Malaysians spent nearly RM98 billion on “Cuti-Cuti Malaysia” in 2024, and that spending anchors thousands of small businesses. It is the quiet success story that keeps guides, small hotels, homestay owners, restaurants and transport operators working — alongside fresh momentum in international travel. Article in theedgemalaysia.com

Do we know about potential opportunities? Genting Highlands perhaps?

This is just an hour away from Kuala Lumpur. It’s a favorite getaway destination and most of my overseas friends when they are here, they also want to go to Genting Highlands. It could be to the Genting Premium Outlet or it could be to the entertainment at the top; theme parks and casinos and some signature restaurants and perhaps even a concert. So, there are a lot of reasons and this is also why Genting Highlands getting ever busier every year. Fortunate thing is that the traffic jams did not happen yet unlike Cameron Highlands. If we stay in the cheapest available hotel option at the top, it would be First World Hotel.

What are the typical hotel rates and what can we learn from it?

By the way, if the property is in places like Cameron Highlands or Genting Highlands, getting the 8 nights (weekends) plus another 8 nights (weekdays) should be attainable. Else, there would not be so many developers building units there in Genting Highlands yeah. Plus, just check out the rates for the weekends in First World hotel. (small room, bare facilities) and the rate is as below:

What if we have a property which is rented out to tourists?

Since we could see the potential from above, let’s say we are renting to just the local tourists and they travel only during weekends. So, they start on Friday night and they check out on Sunday late morning. That’s 2 nights. If they travel with a small family of 2 young children, they could spend RM300 for a 3-star hotel / budget hotel (family room) or they could spend RM200 per night for a fully furnished homestay place.

Maybe it’s a condo / apartment with full facility and furnished properly with the necessary. Make sure it’s always clean, clean and clean as this is the basic requirement. This could only happen for 8 nights since typically one month has 4 weekends. How much would your unit net you?

RM200 (per nights) x 2 (nights) x 4 (weekends) = RM1,600 per month. Enough to pay for a mortgage of RM350,000 property.

Or if every week you are able to rent out two more nights, that’s an extra 8 nights per month and this is an extra RM1,600 per month for a grand total of RM3,200 per month.

No idea where and what property yeah, you have to do your homework

Yes, I do have one little unit of 850 sq ft in Cameron Highlands which is typically rented out during the weekends and the typical occasional weekdays too. I am trying to go there and stay a few nights every year too but I know how jammed it could be during holidays. However, it does not be some highlands yeah. It could just be a place in some touristy spot, maybe with easy connection to the public transport, maybe with connection to the shopping place, maybe with walking distance to some markets, eating spots and more. Just research a little, check out some units, decide on how you like to go about.

Tourism numbers are real. Malaysia is a gem to be discovered because we are actually ‘Asia.’ We just need to understand this and take advantage of this growth to also grow our own wealth too. Property investment is all about returns and building wealth too. We are buying a property at today’s price. Rental rates in the future would be higher than today. In other words, our cost of ownership would stay almost the same but the revenue we get in the future will continue to rise.

Happy investing.

Happy learning.

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