Desaru Coast, Malaysia: Hotel Market Overview

Market Report: Desaru Coast – Hotel Market Overview

While the pandemic devastated the hospitality industry in 2020, Desaru in Malaysia welcomed two luxury resorts, namely Anantara and One&Only. While not a panacea to the damage dealt to the global tourism industry, it does send an encouraging signal to those with bullish perspectives on the destination.

Historically, Desaru was a well-kept secret by Malaysians, and the occasional Singaporeans, who have been enjoying this scenic beach destination. As the Desaru Coast master plan development is carried out, Desaru was revived and again on the radar of tourists seeking an authentic beachside experience. In this market report, we assess the lodging assets’ performance in Desaru Coast and compare Desaru and Langkawi shoulder-to-shoulder in terms of market segmentation, nationality mix, accessibility and other characteristics.

Although Desaru is still at the infancy stage of being a premium luxury resort destination, it is in possession of many features and characteristics befitting of a luxury resort destination, such as a sense of authenticity, tranquillity, the convenience of access, abundant amenities and uniqueness.

Horwath HTL Malaysia are optimistic about the prospect of Desaru in the mid-to-long term. The planned integrated developments are expected to enhance Desaru as a popular holiday destination, to both domestic and international travellers. Its proximity to Singapore with easy connections (via roads and ferry) is perhaps the most important feature for Desaru, lending competitiveness over other resort destination in South East Asia. Further improvements with the new international ferry terminal south of Desaru and the possible third bridge link to Singapore (potentially Pengerang – Changi) will have a tremendous positive impact on the destination and bolster economic growth.