KUALA LUMPUR: Tourism industry players have welcomed the government’s decision to extend the Visit Malaysia Year 2026 (VMY2026) campaign to the end of 2027, describing it as a timely move to cushion the sector against global uncertainties – but cautioning that structural reforms are equally critical to ensure its success.
Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi announced last week that the campaign would be extended by another year, providing a longer runway for Malaysia to achieve its target of 47 million visitor arrivals.
The decision comes as the tourism sector grapples with external shocks, including ongoing geopolitical tensions in the Middle East, which have disrupted travel patterns and dampened demand from key long-haul markets.
Industry players say the extension offers breathing space, but stress that it must be accompanied by adequate funding, market recalibration and a shift in business strategies.
Malaysian Association of Hotels (MAH) vice-president Lim Chee Siong described the move as positive, noting that the additional year allows industry players to maximise returns on investments already made in preparation for the campaign.
“Hotels, as strategic partners, have already invested significantly in marketing, staff training and service improvements. The extended timeline provides a stronger platform for sustained promotion and enhances Malaysia’s competitiveness as a regional destination,” he said.
However, Lim emphasised that sufficient funding for Tourism Malaysia and industry stakeholders would be crucial to ensure the campaign’s effectiveness.
He also proposed targeted incentives for Malaysians to boost domestic travel, including tax relief and support for tourism-related spending such as accommodation and theme park visits.
“Overall, the extension reflects strong government commitment towards tourism sector growth, providing greater confidence for the industry to plan and invest over a longer period,” he added.
In Langkawi, where tourism operators have already felt the impact of global disruptions, the extension has been welcomed as a pragmatic step.
Langkawi Business Association adviser Datuk Alexander Isaac said the move would help the industry navigate challenges in meeting the original 2026 targets, particularly in light of the Middle East conflict.
“Even if the war stops today, it will take between six months and one and a half years for travel infrastructure and confidence to recover,” he said.
He added that Langkawi, as an international destination, remains heavily reliant on European and Middle Eastern travellers, many of whom transit through Gulf hubs such as Dubai and Doha.
“The disruptions have led to cancellations, both at the company level and across the industry,” he said.
Alexander also urged the government to introduce a RM1,000 income tax relief for domestic travel, noting that such measures have proven effective in stimulating local tourism in the past.
At the same time, he called for a strategic pivot towards Asian markets, including Japan, China, South Korea, India and Asean countries, to offset declining arrivals from traditional long-haul segments.
The extension comes against the backdrop of a fragile ceasefire in the Middle East announced by United States President Donald Trump, following weeks of escalating conflict involving Israel and Iran.
While the ceasefire has raised hopes of de-escalation, the situation remains volatile, with reports of continued military action in Lebanon underscoring the uncertainty surrounding the region.
The earlier escalation triggered widespread disruptions to global aviation networks, particularly affecting Middle Eastern transit hubs that serve as critical links between Europe and Southeast Asia.
In a recent Twentytwo13 report, tourism players highlighted how the conflict has already resulted in cancellations, reduced bookings and operational challenges, particularly in destinations such as Langkawi that depend heavily on international arrivals.
Against this backdrop, industry experts say extending the campaign timeline is only part of the solution.
Founder of Your Inbound Matters Uzaidi Udanis said while the extension is a positive step, its success ultimately hinges on whether the industry is willing to transform.
“We can extend it until 2028, but if we continue with the same approach – focusing purely on arrivals and traditional travel packages – the impact will be minimal,” he said.
Uzaidi argued that Malaysia must shift its focus from sheer visitor numbers to tourist spending and overall value creation.
He noted that while Malaysia attracts a high volume of visitors, average spending per tourist remains significantly lower compared with regional competitors such as Thailand.
“The key is not just how many people come, but how much they spend and the quality of their experience,” he said.
He also highlighted the urgent need for digital transformation, pointing out that only a small proportion of local tourism players are actively engaged on global booking platforms.
“Travel decisions today are increasingly driven by digital platforms and artificial intelligence. If we are not visible in these ecosystems, we risk being left behind,” he said.
Equally important is the development of authentic, experience-driven tourism offerings.
“Global travellers are no longer looking for sightseeing alone. They want immersive, local experiences – whether it is cultural tours, food trails or community-based activities,” he said.
Uzaidi added that Malaysia should capitalise on its strong Asean market, which accounts for the majority of visitor arrivals, while continuing to tap into higher-spending segments where possible.
“Every crisis presents an opportunity. This extension gives us the chance to reset, recalibrate and reposition Malaysia as a destination that offers quality experiences, not just numbers,” he said.
As the tourism sector navigates an increasingly uncertain global landscape, industry players agree that resilience will depend not only on policy support, but also on the ability to adapt.
For many, the extended timeline is a welcome relief – but the real challenge lies in making the most of the opportunity it presents.
