Tourism Malaysia Deputy Director-General (Promotion) Datuk Musa Yusof highlighted the slower tourism recovery in the – Asia-Pacific (APAC) region compared to the other areas. One key factor contributing to this is the delayed reopening of the Chinese market, which is crucial for tourism recovery.
He explained that Chinese operators, affected by the ongoing impact of Covid-19, need time to recover in business operations. The emphasis in China is currently on vigorously promoting domestic tourism due to its large market size. However, as they gradually resume international travel, the figures show a rapid increase. He stressed the importance of targeting the high-yield tourist segment in the China market.
“The trends have changed. For the China market, it’s different from before. Previously, there were a lot of group-inclusive tours (GIT). Still, after Covid-19, there’s been a shift towards smaller groups or free independent travellers (FITs) within their circles of friends and relatives. Large group tours are no longer the norm. Now, there’s a preference for experiential tourism and slow tourism. They want to have more meaningful experiences.”
Musa said today’s travellers primarily sought new experiences, exploring different restaurants and cuisines, visiting local landmarks, and attending traditional arts and cultural events. They are inclined towards experiencing cultural heritage and tend to be more adventurous.
“In the post-pandemic era, the focus is on value for money. Travellers have become more price-conscious. They inquire about responsible tourism, questioning whether destinations contribute to pollution or align with Sustainable Development Goals (SDGs). Additionally, they seek flexible offerings and, of course, prefer multiple destinations.”
THE INCREASE OF CROSS-BORDER TOURISM
In addition to the resilience of domestic tourism, cross-border travel has become a key element in Malaysia’s efforts to rejuvenate its tourism sector. Examining the Southeast Asian region, Musa highlighted Vietnam as an emerging market for the tourist generation due to the increasing middle-income group and positive economic growth. The rising number of middle-income individuals there has led to an increase in outbound travel.
“As of April 1, 2022, we welcomed a MICE delegation from Vietnam. Vietnamese visitors come to the city for shopping and, to some extent, theme parks. Our primary focus in Asia is on Indonesia and Vietnam.
“In Indonesia, we currently target the western and central regions, with plans to expand to the eastern part. Nusantara is opening up. With the ongoing development in Eastern Indonesia, which has a population base of about 40 million, we anticipate tapping into Kalimantan, Makassar, and other areas. While there is existing connectivity, it is not as extensive as in Sumatra and Java, so we need to enhance it.”
Musa highlighted the existing cross border tourism between West Malaysia and Indonesia. There are 10 Customs, Immigration, and Quarantine (CIQ) complexes between Indonesia and Sarawak, with the largest being CIQ Tebedu and CIQ Biawak. Many Indonesian travellers from that region typically use express buses to enter Malaysia.
Apart from Indonesia and Vietnam, Musa also identified Thailand, Singapore, and Brunei as critical countries for Malaysia’s cross-border tourism.
EXPLORING UNIQUE NICHES AND GRANTS
Regarding tourism development for 2024, Musa highlighted the exploration of new tourism product niches by states in Malaysia. For instance, Perlis is focusing on developing its ecotourism sector.
Musa also expressed optimism about the positive impact of the visa liberalisation initiative on increasing arrivals. His message to local industry players is to embrace creativity and innovation, encouraging them to reinvent or refresh existing offerings to make them stand out.
He emphasised the importance of introducing new products, such as those centred around ecotourism, sustainability, and astro-tourism, as seen in Sabah and Taman Negara, Pahang.
“We also emphasise business travellers for the bleisure segment, which combines business and leisure. These individuals may be attending MICE events or meetings, and we encourage tourism operators to focus on this segment.”
Musa said bleisure travellers might initially arrive alone, with family members joining them later. With this scenario in mind, shopping centres could provide these travellers with integrated tourism experiences, including theme parks, ice skating, cinemas, and spas. These initiatives to entice bleisure travellers help contribute to the development of retail space.
Musa also highlighted the Geran Stimulus Penerbangan Antarabangsa dan Charter (GSPC), allocated by the government at RM23 million in 2024 to revitalise the tourism sector. Charter and scheduled airlines seeking to increase frequencies or open new routes can apply for the grant. The funding supports marketing and promotion efforts, ensuring effective in-market marketing to boost plane occupancy.
