KUALA LUMPUR – The resurgence of the “revenge travel” trend, embraced by post-pandemic tourists, and the weakened ringgit have significantly bolstered Malaysia’s tourism sector, according to economists.
Last week, Scoop reported that the country earned an impressive RM45.42 billion in tourist receipts in the first six months of 2024, according to figures from Tourism Malaysia. This marks a 50.8% increase, or RM15.3 billion more, compared to the RM30.12 billion collected during the same period in 2023.
Additionally, the latest figure surpasses pre-pandemic earnings by RM3.74 billion, or 9.0%, compared to RM41.67 billion in the first half of 2019.
Average per capita tourist spending reached a five-year high, with RM3,846.45 recorded in the first half of 2024. This represents an increase of RM678.21, or 21.4%, from RM3,168.24 in the same period last year, and a 23.2% rise from RM3,121.60 in 2019.
Professor Saidatulakmal Mohd of Universiti Sains Malaysia attributed this surge to the “revenge travel” trend, with tourists resuming long-delayed travel plans after years of pandemic-related restrictions.
“Tourists feel more secure about travelling due to widespread vaccination, improved health protocols, and the normalisation of travel processes.
“(Additionally) many travel procedures in various countries have been relaxed, reducing the stress associated with travelling,” she told Scoop when contacted.
Weaker ringgit benefits inbound tourists
British economist Geoffrey Williams, of Williams Business Consultancy Sdn Bhd, highlighted how foreign tourists to Malaysia benefitted from the ringgit’s depreciation. During the first half of 2024, converting US$100 yielded RM480, compared to RM440 in the first half of 2023.
However, Williams noted that these benefits may soon diminish.
“Now that the ringgit has strengthened, the advantages of a weaker currency will ease off,” he explained.
“Meanwhile, Malaysian tourists travelling overseas will be better off as it will now cost RM410 to buy US$100, compared to RM480 just a few months ago,” he added.
Williams also attributed the positive tourism trends to the continuing normalisation of travel post-pandemic, along with affordable offers, flights, and accommodation designed to stimulate demand.
Positive economic indicators
Professor Saidatulakmal remarked that these figures signal a strong recovery for Malaysia’s tourism industry and are an encouraging sign for the national economy.
However, she pointed out that tourist arrivals in the first half of 2024, which totalled 11.8 million, have not yet returned to pre-pandemic levels, which stood at 13.3 million in 2019.
“This comparison with pre-pandemic figures highlights that, while the industry is showing signs of recovery, there is still work to be done to fully restore tourist numbers.
“Factors such as changing travel preferences, global economic conditions, and varying degrees of Covid-19 recovery (across regions), along with other diseases such as influenza A, across different regions may contribute to the slower rebound in tourist arrivals.
“Nonetheless, the positive trend in spending and receipts suggests a shift towards higher-value tourism, where fewer tourists may spend more, thus benefiting the national economy,” she added.
Williams emphasised that the strong tourism figures positively impact hotels, restaurants, tourist attractions, transportation, and the local economy. The sector also contributes to Malaysia’s GDP growth through the multiplier effect.
Government and industry strategies
Saidatulakmal highlighted efforts by the government and industry players to revitalise tourism through promotional campaigns, events, and strategic partnerships, which have attracted both domestic and international tourists.
She cited initiatives such as the Malaysian Association of Tour and Travel Agents (MATTA) Fair, the Malaysia Mega Sale 2024, and collaborations aimed at strengthening the country’s aviation sector to improve air connectivity for tourists.
“These initiatives are also supported by the National Tourism Policy 2020–2030, which aims to revive tourism and ensure it aligns with national and global developments such as digitalisation and sustainability.”
Smart tourism, sustainability, and safety
Professor Saidatulakmal called on the government to embrace smart tourism by integrating advanced technologies into tourism infrastructure to provide seamless, personalised experiences for travellers. This could include mobile apps, virtual guides, and secure digital payments.
She also urged the tourism sector to adopt sustainable practices, as environmentally conscious travellers increasingly seek out eco-friendly options.
“We can see that numerous hotels and destinations have incorporated sustainable practices through various green initiatives, such as reducing plastic use, introducing energy-saving systems, and supporting local communities.
“More effort needs to be dedicated to this,” said Saidatulakmal when asked what Putrajaya can do to ensure that the tourism spending trends steadily improve in the coming years
Saidatulakmal also stressed the importance of maintaining Malaysia’s reputation as a safe destination, not only in terms of health and hygiene but also from political and natural threats.
“(In addition), enhanced safety protocols at tourist destinations, better enforcement of health and hygiene regulations, incorporation of disaster risk management, and the integration of safety technologies must be prioritised.”
Meanwhile, Williams contended that tourism is not really a “government-driven issue” beyond what it is currently providing through its tourism promotion agency Tourism Malaysia. However, he acknowledged that the Minister of Tourism, Culture and Arts, Datuk Seri Tiong King Sing is doing a good job.
“(But) It is important to make Malaysia a welcoming place and tone down some of the bad rhetoric we have seen recently (such as) boycotts, restrictions on (tourist) behaviour in some states, and political disputes, which shows Malaysia in a bad light,” he added – September 30, 2024