Currently, Singapore and Malaysia have established the Reciprocal Green Lane (RGL) and Periodic Commuting Arrangements (PCA) but these are limited in scope, meaning cross-border travel is still very much stifled.
Malaysian Association of Hotels chief executive Yap Lip Seng said he believes the business events market remains “very much untapped” with tremendous potential for growth. “It is likely to be the lifeline of tourism when the recovery comes,” he told FMT.
Yap said Johor has a high potential of being developed into Malaysia’s premier business events destination because of its location. “Johor is an important gateway to Malaysia and is highly accessible from Singapore, the busiest hub in South East Asia.”
Johor Tourism Association chairman Jimmy Leong said the MICE sector has always been a major contributor to the tourism industry, which includes multitudes of businesses including hotels, airlines, tour operators, food and beverages suppliers and almost every other branch of the tourism sector.
According to statistics from the Malaysia Convention and Exhibition Bureau (MyCEB), expenditure by travellers for events secured and supported by the bureau particularly for Johor from 2010 to 2019 amounted to RM55.4 million.
The economic impact in the same period is estimated to be around RM96.7 million, not including earnings from business events which the bureau were not involved in.
Leong said MICE travellers tend to spend more than leisure travellers as most of their expenses are sponsored.
“Malaysia can be a top MICE destination in the region given our ‘Truly Asia’ branding and promotion globally,” he said, adding however more needs to be done to improve existing infrastructure and services.
Malaysian Association of Tour and Travel Agents (Matta) secretary-general Nigel Wong said the state’s tourism industry would recover faster if the RCL and PCA could be opened for MICE activities.
However, Wong raised concerns about the mandatory quarantine order, saying it would deter potential business travellers away.
“The quarantine order would be a hassle for short term travellers, especially for those coming for work purposes,” he added.