Maybank Investment Bank says Malaysia’s tourism sector enters upcycle
Date
1/16/2025 8:32:04 AM
(MENAFN) Maybank Investment bank has indicated that the tourism sector in Malaysia has entered an upcycle, driven by an influx of tourists from China, India, and the domestic market. The research firm expressed optimism about the future of the Malaysian tourism industry, backed by a record tourism promotion budget. They emphasized that, barring any major disruptions, the outlook remains positive for the sector.
In a note released on Wednesday, Maybank pointed out that historical trends show tourism upcycles in Malaysia typically start in the years leading up to major tourism campaigns like Visit Malaysia Year (VMY), rather than during the VMY itself. The research house expects growth to be fueled by increased arrivals from Chinese, Indian, and domestic tourists.
Maybank highlighted that China and India are the only two major tourist markets that have shown growth in 2024 compared to 2019. Specifically, Chinese tourist arrivals for the first 11 months of 2024 were 4 percent higher than the same period in 2019. The firm attributed this growth, along with increased arrivals from India, to Malaysia’s decision to grant 15-day visa-free access to nationals from both countries in December 2023.
To further bolster tourism, Malaysia announced in December 2024 that it would extend the visa-free period for Chinese and Indian tourists to 30 days. The country also extended the visa-free program until December 31, 2026, as part of efforts to facilitate the Visit Malaysia Year 2026 campaign.
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