Tourism industry is one of the major contributors to the national economy and it is closely related to the development of the hotel industry. Improvement of sub sectors accommodation (hotel) is often related to the increase of tourists to Malaysia. The aim of this paper is to analyse the effect of tourism on demand of hotel room type and its tariff. In addition, tourists’ behaviours were observed to understand demand of hotel room type because they contribute to the development of hotel industry. Four main factors were chosen as the main factors before choosing a hotel that are price, location, facility and accessibility. These factors were analyse using two methods that are descriptive analysis and multidimensional scalling analysis. The result of this analysis showed that tourist chose 2- star hotels and below as their preferred accommodation. Apart from that, this research further analyse hotel room tariff for the hotel type that was chosen by tourists using simple linear regression. This is useful as a simple guideline for hotel industry.