China’s tourists flock back to Malaysia, sparking optimism for economic revival

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After a pandemic-induced hiatus, Chinese tourists are once again flocking to Malaysia, with industry experts predicting a return to pre-pandemic arrival levels this year. Mint Leong, president of the Malaysian Inbound Tourism Association, reported a significant surge in arrivals, estimating a one-third increase year-on-year in January and a 50 percent rise in February, with the Chinese New Year period marking a peak in arrivals.

Before the pandemic, China stood as Malaysia’s third-largest source of tourists, sending 3.1 million visitors in 2019. The Malaysian government, eager to revive the tourism sector, has set a target of 5 million Chinese visitors in 2024. This push aligns with broader economic goals, as Malaysia’s economy grew 3.7 percent in 2023, falling short of official targets and lagging behind regional neighbors.

To entice Chinese travelers, Malaysia introduced visa-free entry for Chinese citizens, allowing them to stay up to 30 days for travel and leisure purposes. This move, combined with China’s rising middle-class population and high savings rate, is expected to sustain outbound tourism, benefiting not only Malaysia but also other countries in the region.

Industry figures are optimistic about the revival, with hoteliers in Kuala Lumpur noting a noticeable uptick in Chinese bookings during the Lunar New Year period. EQ, a 5-star hotel in Kuala Lumpur, experienced a surge in Chinese arrivals during the Lunar New Year period. General manager Gerard Walker attributes this growth to increased flights from regional centers, larger capacity airplanes, and Malaysia’s appeal as an alternative destination to more crowded Southeast Asian cities.

The economic impact of Chinese tourists is significant, with the tourism sector contributing 14 percent of Malaysia’s GDP in 2022. Chinese tourists, known for their high spending, could provide a substantial boost to tourism spending in the country. Between 2017 and 2019, Chinese tourists spent an average of 661-768 ringgit per day, significantly higher than the average tourist.

While the revival of Chinese tourism in Malaysia is promising, it also underscores the need for continued vigilance in managing the pandemic and ensuring the safety of both tourists and locals. Nevertheless, the return of Chinese tourists signals a positive trajectory for Malaysia’s tourism sector and its broader economic recovery.

(Source: Al Jazeera)


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