KUALA LUMPUR, 11 OCTOBER 2024 – The Malaysian Association of Tour and Travel Agents (MATTA) has submitted a series of key proposals to the Ministry of Finance for the National Budget 2025, themed “Ekonomi Madani: Negara Makmur, Rakyat Sejahtera,” focusing on revitalizing the tourism industry in preparation for Visit Malaysia Year 2026. These initiatives are aimed at supporting travel agents and tour operators, who play a critical role in attracting foreign tourists into the country as well as growing domestic tourism, thus boosting the economy, and positioning Malaysia as the preferred tourists’ destination in the region.
1. Increased Funding and Grants
MATTA emphasizes the need for enhanced financial support and is proposing an allocation of RM40 million directly to travel agents, tour operators, and tourism trade associations towards supporting tourism-related promotions and activities, both locally and internationally. This funding would help elevate Malaysia’s visibility in key markets such as China, India, South East Asian countries and Europe, bringing the country to its goal of attracting 35.6 million international visitors by 2026.
Additionally, MATTA proposes an RM25 million innovation grant to help travel and tourism operators through a relevant agency, such as MDEC, to aggressively use digital technologies to remain competitive in the global tourism market. With more than 50% of travel bookings now being made online, investing in digital transformation is critical for attracting international tourists. This will also align with and further amplify MDECs existing initiatives in transforming the digital tourism space.
MATTA also calls for RM20 million in capacity-building grants to reskill and upskill tourism workers and enhance service quality towards improving the overall tourists’ experiences in the country.
To ensure effective distribution of the various funds, MATTA suggests a multi-agency approach involving MITI, MOHR, MDEC and MOTAC, thereby ensuring that grants are accessible to all stakeholders to enhance both inbound and domestic tourism development and growth in the country.
2. Reinstating Tax Exemptions for Tour Operators
MATTA advocates for the re-introduction of tax exemptions for tour operators who bring in a minimum of 750 foreign tourists or moving 1,500 domestic tourists per year. Before the pandemic, this policy had significantly boosted both international and domestic tourism through the tour operators. MATTA strongly urges the government to reinstate such tax exemptions to further incentivise the tour operators and stimulate more inbound and domestic tourism activities and number of tourists towards the Visit Malaysia Year 2026 campaign and beyond.
3. Supporting the Growth of Luxury Travel
As Malaysia experiences increasing demand for luxury and personalized high end travel experiences, MATTA proposes tax exemptions on import of high-end vehicles for tour operators catering to high-net-worth individuals. Luxury transportation is essential for MICE (Meetings, Incentives, Conferences, and Exhibitions) tourism, a sector that contributed RM4.4 billion in revenue in 2023. By easing the financial burden of luxury vehicle purchases by tour operators, Malaysia can better attract affluent travellers and business tourists.
4. Extending the Visa Liberalisation Plan to 2026
With the Visa Liberalisation Plan, which started on 1 December 2023, set to end on 31 December 2024, MATTA stresses the importance of extending it until 2026 to align with Visit Malaysia Year 2026. Simplifying visa processes, extending visa durations, and offering waivers for key markets like China and India will significantly boost tourist arrivals. According to the World Tourism Organization (UNWTO), visa liberalisation can increase tourist arrivals by up to 25%.
Conclusion
“Tourism is an important key driver of economic growth for Malaysia, and as we focus on Visit Malaysia Year 2026 and beyond, we must take bold steps to ensure the tourism industry’s further growth and long-term sustainability for now and into the future years ahead. Our proposals had focused on empowering the tourism industry with the necessary financial support, tax incentives, and policy reforms to remain competitive and attract more visitors from key global markets," said Nigel Wong, President of MATTA. "By investing in digital transformation, upskilling our workforce, and making travel to Malaysia more accessible, we are laying the foundation for a powerful and resilient tourism future."
MATTA’s proposals for the 2025 National Budget aim to stimulate growth, attract more tourists, and ensure Malaysia’s tourism industry continue to grow in the coming years. With strategic investments in funding, tax relief, and policy enhancements, Malaysia is well-positioned to reach its goals for Visit Malaysia Year 2026 and beyond, ultimately contributing to sustainable economic recovery and growth for the country and people.