What is so special about tourism investment zones?

Focus Malaysia

4 hours ago

LAST Thursday, Prime Minister Datuk Seri Anwar Ibrahim tabled in Parliament the 13th Malaysia Plan (13MP), with RM611 bil earmarked to be spent from 2026 to 2030.
What caught my eye was the heading of a Bernama report 'Malaysia tourism growth under 13MP with new investment zones'.
Those who have attended the Travel and Tours Enhancement Course (TTEC), rolled out after I have conducted the Training-Of-Trainers in February 2022, may be able to recall that one of the six transformation strategies in the National Tourism Policy of 2020-2030 is to create 'Special Tourism Investment Zones'.
Undoubtedly, the many grand master plans unveiled by the federal government over the years have always been world-class, but not so when it comes to implementation and execution. By the end of this year, six years would have elapsed in the 11-year National Tourism Policy.
And now, the narrative on STIZs seems to have shifted with the latest announcement that they will be established from next year, and four states have been identified viz. Negri Sembilan, Melaka, Johor and Sarawak for preserving heritage sites and enhancing rural homestays.
According to Anwar, these zones will be the catalyst for new tourism products based on artistic, cultural, and heritage assets, as well as environmental areas like the Sungai Batu archeological site, the Lenggong Valley, and the Niah Caves which are recognised by UNESCO.
He added that homestays will be upgraded to spur rural economies, aligning with Visit Malaysia 2026 preparations.
Additionally, the Kuala Lumpur Heritage Initiative will restore landmarks such as the Sultan Abdul Samad Building and Merdeka Square, blending modernity with cultural preservation.
When conducting TTEC from 2022 to 2024, I informed participants that special tourism investment zones have yet to be established.
But their potential will be immense if modelled after free trade zones (FTZs), such as those in Sungai Way and Ulu Klang in Selangor.
FTZs were created after a huge piece of land was allocated and many factories built. Before commencement of manufacturing, the entire area is fenced up and the customs will ensure that materials are brought in from entry points and goods sent out to exit points directly without duty.
Hence, I imagined that new zones will be created for STIZs with incentives to attract substantial investments on new tourism goods and services.
But from the recent announcement, STIZs will now be used as the banner to rehash, upgrade or revitalise existing tourism products.
When STIZ was first proclaimed in 2019, four areas were identified for pilot projects, specifically in Langkawi, Putrajaya-Sepang, Port Dickson and Tuaran-Kota Belud. Incentives such as tax reduction, grants, and infrastructure development were still in the works.
That year, Prime Minister Tun Dr Mahathir Mohamad spoke at the World Tourism Conference in Kuala Lumpur that the STIZ will focus on infrastructure and technology-based investments. The aim was to stimulate and develop new and alternative tourism areas and products.
Since then, the STIZ has not progressed beyond vision and mission statements to pragmatic ideas and concrete actions.
But the latest announcement has won praises from various tourism industry leaders, either afraid of offending the government or being left out in future dialogues.
One of the most effective new ways to develop and promote international and domestic tourism is to set up one-stop centres in cities and major towns all over the country.
These tourism centres are to assemble all the best local foods, goods and services under one roof, making each one a unique experience for visitors.
They can be a massive shed using the ground floor only or multi-stories like shopping centres. Success is assured if they are professionally managed like commercial malls. But they will fail if operated like government-built food courts where vendors are given priority over customers.
The foods, goods and services offered should not be limited to halal only as they must also cater to non-Muslim visitors.
If such one-stop tourism centres offer a great variety of local specialities, visitors would be happy to spend many hours shopping, dining and being entertained.
Since 2018, I have written numerous published articles on my concept of one-stop tourism centres.
Essentially, they require the help of the federal, state and local governments to provide the land and facilitate, and the private sector to build and operate, efficiently and profitably.
The catchy name of Special Tourism Investment Zone (STIZ) ought to be used for developing and offering new tourism products, such as one-stop centres, which can become a must-visit in every city and major town.
STIZ should not be used to rebrand or hype up long existing products. ‒ Aug 4, 2025
YS Chan is master trainer for Mesra Malaysia and Travel and Tours Enhancement Course and an Asean Tourism Master Trainer. He is also a tourism and transport business consultant.
The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
Main image: Bernama