Experts predict visa-free extension will boost economy

The Star

22-04-2025

Higher draw: Tourism players and business groups say the move will widely benefit the hospitality and retail sectors. — ONG SOON HIN/TheStar
PETALING JAYA: The five-year visa-free extension for Chinese tourists to Malaysia will be more than just a tourism boost as it will potentially have a positive impact on the nation's economy, say tourism players and business groups.
Apart from stability, which allows tourism stakeholders to plan their products well ahead, they say positive spillovers can be anticipated for the hospitality and retail sectors.
Malaysian Association of Tour and Travel Agents president Nigel Wong said the move allows the industry to better develop the Chinese inbound market.
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'There is stability for the industry to plan ahead and boost efforts to attract more Chinese tourists,' he said, adding that there is increasing demand for Chinese travellers looking for experiential tourism products.
'It's no longer just about the conventional tours. Instead, innovative and creative experiences like culinary tourism, heritage and culture, as well as ecotourism products, are popular with ­foreign tourists,' he said.
He also said the benefits of this move will go beyond the Visit Malaysia 2026 campaign.
'Tourism tends to spike after Visit Malaysia campaigns and this move will tie in very nicely,' he said, referring to the free visa for five years and potentially for another five years for tourists from China.
Malaysian Inbound Tourism Association president Mint Leong said the move gives industry players a clear direction when promoting Malaysia to Chinese tourists.
'Malaysia will also have the opportunity to attract more business events and business travellers due to this,' she said.
She said Malaysia is also a popu­lar destination for Chinese nationals wanting to escape the winter season, noting how the Heilongjiang province can reach temperatures below 0°C.
'During winter, which lasts from late October to February, they can travel to Malaysia for its warmer climate,' she said.
Leong also noted a potential 'thrust' of economic activity for the hospitality sector and long-term rentals.
Industry players, she said, can promote niche tourism products such as community and sustainable tourism to woo Chinese tourists.
'This way, they can immerse themselves in the local cultures as they have adequate time to do so,' she said.
She added that peak periods for Chinese travellers to Malaysia are during the first 10 days of Chinese New Year celebrations as well as May, July and October.
Associated Chinese Chambers of Commerce and Industry of Malaysia treasurer-general Datuk Koong Lin Loong said the move can further spur the national gross domestic product.
'Chinese tourists will feel that there is less hassle due to the visa-free conditions and when they arrive, they will definitely be spending on goods as well as food and beverage.
'The hospitality industry is also set to benefit,' he said.
He said visa-free travel can also see Chinese professionals coming over to survey potential business prospects informally.