KUALA LUMPUR, July 4 — Malaysian economists said the potential influx of Chinese tourists will boost the local sector, reported Xinhua.
PublicInvest Research said in its recent report it expects China to contribute to the recovery of the global tourism industry, including Malaysia’s.
The research house said the resurgence of Chinese tourists will be a major positive factor for the Asean region, albeit with a gradual recovery trajectory.
The number of tourists visiting Asean countries has yet to surpass pre-pandemic levels.
While the Chinese government itself has actively encouraged tourism, the research house said the backlog of passport and visa renewals is significant, lengthening approval periods.
It anticipated tourist arrivals may not surpass the previous peak recorded in 2019 until at least the first half of 2024.
PublicInvest Research said China’s reopening marked a remarkable influx of 178,150 Chinese tourists to Malaysia in 2023’s first quarter, a stark contrast to the meagre count of under 1,900 visitors in the same period in 2022.
Its assessment suggests the potential for a complete recovery to the pre-pandemic level — 3.1 million Chinese tourists (in 2019) — by the first half of 2024.
In light of these favourable trends in tourist arrivals and the subsequent revival of tourism, PublicInvest Research expects the creation of more jobs and heightened demand for goods and services within Malaysia’s tourism sector.
It said the local tourism industry is placing considerable emphasis on a substantial resurgence in tourist arrivals in the second half of 2023, propelled by measures to address visa approval challenges and enhance flight connectivity.
Malaysia’s tourist receipts amounted to RM28.2 billion in 2022, compared with RM86.1 billion in 2019. Putrajaya has set an ambitious target of attracting 16.1 million tourists this year, signifying a notable 60 per cent surge from the previous year’s, with the aim of generating RM49.2 billion in tourist receipts.
Hong Leong Investment Bank Research also sees China as a key ingredient to Malaysia’s tourism growth.
“The Chinese are not only important in terms of tourist numbers to Malaysia, they are also ‘high-value tourists’,” it said in a recent report.
Before the pandemic, Chinese nationals made up the third-largest group of tourist arrivals in Malaysia, after Singapore and Indonesia.
However, in terms of contribution to tourist receipts, China ranked higher at second place, owing to its tourists’ stronger spending power.
From 2017 to 2019, the average Chinese tourist spent RM661 to RM768 per day in Malaysia — 19 to 72 per cent higher than the average non-Chinese tourist.
CGS CIMB said it sees an upside from a pick-up in Malaysia’s tourism sector over the next six to 18 months, underpinned by the potential growth of Chinese tourists.
In a recent report, it said China’s reopening gains could provide further impetus for Malaysia’s economy and current account surplus, especially in 2024.
The Malaysian tourism sector recently called on related government departments to attract more international tourists.
The Malaysian Association of Tour and Travel Agents (Matta) said in a statement that a review of current traveller-handling procedures of those with a Not To Land status is crucial to preventing abuses as Malaysia gears up to receive more foreign tourists.
Matta president Tan Kok Liang said it is imperative the government does all it can to uplift the image of Malaysia as a safe and attractive tourism destination by eliminating corruption at all levels at Kuala Lumpur International Airport (KLIA).
Prime Minister Datuk Seri Anwar Ibrahim visited KLIA on Sunday to ensure Customs Department and Immigration Department operations were under control.
Anwar said the government will study measures to improve the departments’ procedures, reported Bernama.
“There are some weaknesses with Customs that need to be remedied. Generally, the majority of the services by immigration employees and personnel are smooth. There are some problems. We will investigate to improve and appropriate actions will be taken if there are flaws.”
— Bernama
