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Tourism players call for greater budget, stronger incentives before Visit Malaysia 2026

PETALING JAYA: Industry captains are calling on Putrajaya to allocate more funds and offer greater incentives in the upcoming budget to ensure the success of Visit Malaysia 2026 (VM2026), warning that the campaign must not be a flash-in-the-pan but leave a lasting legacy.

The Malaysian Association of Tour and Travel Agents (Matta) and the Malaysian Association of Hotels (MAH) emphasised that the nationwide tourism campaign must ensure a long-term spillover effect, generating jobs, inducing repeat visits, and stimulating a wide range of industries.

Matta president Nigel Wong added that the expense of marketing Malaysia abroad has increased dramatically because of the weaker ringgit, which means the nation has “less value for money.” He called on the government to double the budget for international marketing so that Malaysia can continue to have visibility in such important markets as China and India.

“Foreign branding of Malaysia cannot be compromised. With insufficient funding, we will lose our competitive edge,” he said, adding that resources must also be used to address long-standing problems that taint Malaysia’s image – including illegal operators, touts and unregulated e-hailing drivers that undercut licensed players.

Besides promotions, Wong recommended tax incentives for bringing in large tour groups, more funding to city councils to improve sidewalks, lighting and public transport, and more assistance in the preservation of heritage. He also recommended positioning Malaysia as a transit hub through a cooperation with Malaysia Airlines to promote overnight stopovers, turning short stopovers into stayovers.

Meanwhile, MAH president Christina Toh referred to the troubles plaguing the hotel industry, particularly shortages of labour. She proposed extending tax relief hitherto granted only to budget hotels to four- and five-star hotels as well, along with service digitalisation grants such as self-check-in kiosks and robot cleaners.

Toh also called for government incentives to promote domestic tourism through individual tax rebates to Malaysians, just like what was done during the pandemic. She also suggested that the tourism tax collection be extended to airports so that all foreign tourists, including those who stay in Airbnbs and informal accommodations, pay up.

As green takes the centre stage, she called for green practice-acquiring hotels to be rewarded with incentives, from solar panels to rainwater collection. “VM2026 has to be more than a campaign. It must reinforce our standing as a world-class destination and prove the diversity of experiences we have,” she said.

Her announcement comes with Malaysia eyeing 47 million foreign visitors in 2026. The country had 38 million in 2024, up by a whopping 31.1% from the previous year.

RM550 million was allocated for VM2026 promotions, RM600 million to restore historical iconic cultural spots in Kuala Lumpur, and RM110 million for tourist infrastructure development, to pursue Unesco heritage status, and to develop ecotourism in Budget 2025.

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