Penang will maintain its existing tourism budget, with Chief Minister Chow Kon Yeow saying private-sector participation remains crucial to developing new attractions and strengthening the state’s visitor economy.
“We are still working with the same budget,” Chow said to BusinessToday when pressed on whether there will be a bigger allocation for state tourism in the upcoming budget.
He added that tourism development was not solely the responsibility of the state or federal governments, citing the newly restored 1926 Heritage Hotel Penang as an example of public-private collaboration where the Penang Development Corporation-owned property was awarded to The Ascott Limited through a tender exercise for refurbishment and hotel operations.
The state, he added, was satisfied with the outcome and expects the property to become a viable tourism product through effective management, promotion, strong occupancy and positive guest feedback.
In his launch speech earlier, Chow said the century-old building had undergone a RM20 million refurbishment since the project was announced in September 2024. He described the completed development as an example of how heritage buildings could be preserved and given a new commercial purpose.
At the same time, Chow said Penang was also expanding its tourism offering through public projects, including the reopening of the state museum following an almost decade-long refurbishment and the restored Fort Cornwallis, which will be launched by Prime Minister Datuk Seri Anwar Ibrahim on July 25.
“Further improvements are planned under the North Seafront and East Seafront initiatives, alongside infrastructure upgrades, landscaping and a climate-adaptation project along Beach Street and Pengkalan Weld scheduled for completion by year-end,” he shared.
These initiatives, he said, were to combine government-led improvements with private investment to keep Penang competitive, attractive and commercially relevant as a tourism destination.
Meanwhile, Ascott Malaysia country general manager Mondi Mecja said the opening of 1926 Heritage Hotel Penang marked the first Malaysian property under The Unlimited Collection by The Ascott Limited.
“To further complement the momentous occasion, the hotel had received an official five-star classification from the Tourism, Arts and Culture Ministry,” he added.
Mondi highlighted that travellers were increasingly seeking accommodation connected to a destination’s culture, history and identity, positioning distinctive heritage properties to capture growing demand for experience-led stays.
As for the refurbished 1926 Heritage Hotel Penang, the 78-room property occupies 24 interconnected heritage link houses along Jalan Burma that were originally built in 1926 as residences for British officials. The restoration retained its Anglo-Malay architectural influences while converting it into an urban resort.
The hotel’s lifestyle facilities include the Sensorium Wellness spa, Root House by Gēn, The Heritage Collection by Daily Coffee, U-Bar and the U-Shop artisanal retail space. It also displays works by Penang-born artist Koay Shao Peng.
