Surprise F1 return sends Malaysia travel bookings soaring

[KUALA LUMPUR] Malaysia’s surprise return to the Formula 1 calendar in October has sparked an immediate tourism surge, with international flight bookings to Kuala Lumpur more than doubling and Sepang hotel reservations soaring within days of the announcement, underscoring the tourism potential of the one-off race.

International flight bookings made after the Sunday (Jul 26) announcement, for arrivals between Oct 1 and 3, have jumped 106 per cent year on year, said Trip.com Malaysia.

Hotel bookings for stays between Oct 1 and 4 surged 1,614 per cent in Sepang, and 2,525 per cent in neighbouring Dengkil, even as Sepang climbed into the platform’s top five most-searched hotel destinations.

Stephane Thong, general manager of Trip.com Malaysia, noted an immediate surge in interest to destinations that have hosted Formula 1 races.

Thailand, for example, recorded the strongest growth in inbound flight bookings at 1,500 per cent year on year; it was followed by Japan at 800 per cent, and Australia at 275 per cent. 

The Federation Internationale de l’Automobile (FIA), the governing body for motor sport, announced that Malaysia would host the Formula 1 Gulf Air Bahrain Grand Prix from Oct 2 to 4 at the Sepang International Circuit, after the Bahrain race was relocated because of the conflict in West Asia.

Nadia Omer, CEO of online travel agency app AirAsia MOVE, said flight searches to Kuala Lumpur on the platform jumped 12 per cent week-on-week for the race weekend, and hotel interest surged rapidly within 48 hours of the announcement.

As regional fans transition from price-checking to confirming their trips, she said that the platform is pairing hotel discounts with flight bookings to capture the surge in demand.

National carrier Malaysia Aviation Group expects stronger travel demand during the race period and is monitoring booking trends to determine whether more flights or larger aircraft may be needed on selected routes, if operationally feasible.

Room rates more than double

A check of hotel booking platforms also showed demand spilling rapidly into accommodation around the circuit.

Major hotels within a 15 km radius of Sepang International Circuit, including Holiday Inn Sepang Airport and Sama-Sama Hotel KLIA, were sold out by Sunday night. Room rates had climbed to between 90 and 114 per cent from levels in the month before.

The rates at other hotels in the area rose by between 16 and 234 per cent, compared to the weekend of Sep 4 to 6, a regular weekend in the month before the race.

Movenpick recorded the highest jump, surging 234 per cent to RM2,397 (US$586) a night, up from RM717. The rooms were all booked by noon on Tuesday.

Budget-tier Tune Hotel was still offering high-floor deluxe rooms at an eye-watering RM1,564 a night, up from its usual peak rate of RM537.

Malaysian Association of Hotels president Christina Toh said the rapid room take-up near Sepang pointed to strong demand for Formula One, and suggested that the full capacity may spill over to surrounding hubs such as Cyberjaya, Putrajaya and Kuala Lumpur.

Complementary gains for KL and Singapore

The race marks Formula One’s first appearance in Malaysia since 2017, when the country ended its hosting stint because of escalating hosting costs and licensing fees.

Sunway University economics professor Yeah Kim Leng said Formula One’s return reinforces Malaysia’s standing as a world-class destination, in tandem with the country’s national tourism campaign Visit Malaysia 2026. He listed the airline, transport, food and beverage, leisure, entertainment and retail sectors as key beneficiaries.

He said the gains for both Kuala Lumpur and Singapore would be complementary, with the Sepang race taking place just a week before Singapore’s Grand Prix on Oct 9 to 11.

This back-to-back schedule could encourage long-haul tourists to extend their regional stay, allowing Malaysia to capture greater visitor spending while offering travellers a chance to experience the unique cultural and urban highlights of the two vibrant Asian hubs in a single trip, he added.

Sepang’s final Formula One race weekend in 2017 attracted 110,604 fans, marking its highest attendance since 2013. It was higher than the turnout in the 2025 race in Bahrain, which pulled in a record weekend crowd of 105,000 spectators.

Bahrain to bear part of the cost

Despite concerns regarding Malaysia’s readiness after a nine-year Formula One hiatus, Toh expressed confidence in the industry’s readiness.

“Large-scale events are not new to Malaysia,” she said. “The industry has successfully managed major international sporting events, concerts, conventions and exhibitions over the years.”

Tourism Selangor CEO Chua Yee Ling echoed this view, noting that Sepang International Circuit has remained active through major events such as MotoGP, which consistently draws large Indonesian and local crowds.

“Since Bahrain is bearing part of the costs, hosting brings clear benefits,” she said, even as she acknowledged the tight timeline as the main challenge.

Prime Minister Anwar Ibrahim previously clarified that Bahrain would foot the primary hosting fees, meaning Malaysia avoids the FIA registration costs and would need to spend only RM10 million to RM16 million on facility upgrades.

New high-value tourist segment

Malaysian Association of Tour and Travel Agents president Nigel Wong said Formula One provides an opportunity to attract a new segment of high-value international travellers who are passionate about motorsport and experiential travel.

“The key opportunity is to ensure visitors experience Malaysia beyond the race weekend. Motorsport travellers are often willing to explore additional destinations and spend on accommodation, dining, transportation and experiences,” he added.

Wong noted that this creates opportunities for travel operators to package the race with Malaysia’s cultural, culinary, shopping, nature and adventure attractions.

He added that the event should be viewed as more than a one-off opportunity, as a successful staging could strengthen Malaysia’s reputation as a destination for sports tourism, business events and other international gatherings.