KUALA LUMPUR, Jan. 16 (Xinhua) -- Maybank Investment Bank has said that the tourism upcycle has begun in Malaysia, underpinned by Chinese, Indian and domestic tourists.
The research house said in a note on Wednesday that, funded with a record tourism promotion budget and barring major incidents, it is positive for the Malaysian tourism industry.
"History tells us that Malaysian tourism industry upcycles begin not during Visit Malaysia Years (VMY) but the years preceding them... We expect Chinese, Indian and domestic tourists to drive growth," it said.
According to Maybank, China and India are the only two major source markets that have sent more tourists to Malaysia in 2024 than in 2019.
For the first 11 months of this year, Chinese tourist arrivals are 4 percent higher compared to the same period of 2019.
It noted that the continued growth in Chinese and Indian tourist arrivals started with Malaysia granting 15-day visa-free access to both nationalities in December 2023.
In December 2024, Malaysia announced that it would extend the visa-free access period for Chinese and Indian tourists to 30 days, along with an extension of the visa-free program itself to Dec. 31, 2026, to facilitate VMY 2026.
With Malaysia assuming the ASEAN (the Association of Southeast Asian Nations) chairmanship this year, it also gathered that more high-yield business travelers from both countries will also visit Malaysia this year.
The research house also highlighted that domestic tourism also accelerates in VMYs. This is because the government encourages Malaysians to tour domestically during VMYs to augment the Malaysian tourism industry.
According to Maybank, the Malaysian government has set aside 550 million ringgit (122 million U.S. dollars) for tourism promotion this year, the largest budget in history.
"Although VMY 2026 is a year away, we are already positive about the Malaysian tourism industry," it said. (1 ringgit equals 0.22 U.S. dollars) ■