Malaysian capital Kuala Lumpur freezes issuance of new hotel licences

Published on : Tuesday, February 23, 2016

Malaysia new hotel licencesDue to perceived saturation in the hotel market, the Malaysian capital Kuala Lumpur will freeze the issuance of new hotel licences.

There are currently 939 hotels in the city, including more than 400 budget hotels, the Star newspaper reported, quoting Kuala Lumpur Mayor Mohamad Amin Nordin Abdul Aziz.

The decision to suspend approvals of new licences, for all types of hotels, from budget to 6-star, was made in consultation with the Federal government, the report said.

The Kuala Lumpur city government said the number of hotel rooms in the city exceeds 56,000, noting these are sufficient for the 12 million foreign tourists expected this year.

“There is an oversupply of hotels and office spaces in Kuala Lumpur now, and we have been advised by the government to be strict on this, so we will not be giving any more DOs (development orders) for hotels until further notice,” Mohamad Nordin said.

However, he added, projects that have already received planning permission will not be impacted by the order.

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