The Malaysian Association of Tour and Travel Agents (Matta) and the Malaysian Association of Hotels (MAH) agreed that VM2026 should generate a lasting spillover effect, encouraging repeat visits and creating jobs across multiple sectors.
They said VM2026 could only succeed if the allocations provided were sufficient, the incentives fair, and the funds effectively delivered.
Matta president Nigel Wong said efforts to promote VM2026 overseas had become costlier due to the weaker ringgit, and urged the government to double the allocation for international marketing.
“We get much less value for money today. A larger budget is critical to ensuring that Malaysia’s branding is properly communicated, particularly to major markets like China and India,” he said.
While praising cultural and promotional grants such as Gamelan, GSSP and GSSK for supporting local events, cultural offerings and tourist attractions, he said there had been persistent problems with distribution, adding that the process was bogged down by bureaucracy and red tape.
Wong said that funding should not only be about promotions but also tackling long-standing industry challenges, especially scams and unlicensed operators.
He warned that illegal tour providers, touts and unregulated e-hailing drivers were undermining licensed companies by offering questionable services.
“They undercut legitimate players, which damages Malaysia’s reputation. Budget allocations must go towards eradicating these practices,” he said.
Wong also proposed tax incentives for private agencies and tour operators that succeed in attracting large tourist groups, saying a per diem system or tax breaks could help offset the high promotional costs borne by private players.
He said allocations should also be channelled to city councils to improve tourist facilities such as lighting, pedestrian walkways and public transport systems, adding that special measures should be introduced in city centres to encourage greater use of public transport.
Wong also said that heritage sites, particularly iconic buildings in Kuala Lumpur and other major cities, should receive more funding for restoration and upkeep.
He said another way to maximise returns was by promoting Malaysia as a transit hub. He suggested working with Malaysia Airlines to incentivise overnight stopovers, turning transit travellers into short-term visitors.
MAH president Christina Toh called for tax incentives, which are currently limited to one- to three-star hotels, to be expanded to four- and five-star hotels.
Remarking on the shortage of labour in the hotel sector, Toh suggested grants for service digitalisation such as kiosks with self check-in systems or robotic vacuum cleaners to reduce reliance on manpower.
She urged the government to incentivise domestic tourism as well, proposing a personal tax rebate for Malaysians to encourage local travel as Putrajaya had done after the Covid-19 pandemic.
And while tourism tax is currently collected through hotels, she suggested expanding the collection to airports to ensure that all foreign visitors contribute, including those staying at Airbnbs or informal accommodations.
Toh also urged the government to introduce incentives for hotels implementing ESG practices such as upgrading eco-friendly chillers, installing solar panels and harvesting rainwater.
“VM2026 should not just be seen as a one-year campaign but as a reaffirmation of what Malaysia can offer to the world – a refresher and a reminder of our strengths,” she said.
“Tourism drives entire supply chains, creating economic opportunities, improving fast-moving consumer goods demand, and ensuring job stability across industries.”
Deputy prime minister Ahmad Zahid Hamidi said last month that Malaysia aimed to welcome 47 million foreign visitors in 2026. Malaysia recorded 38 million foreign visitors in 2024, a 31.1% increase from 2023.
The 2025 budget saw almost RM550 million allocated to enhance tourism promotions and activities for VM2026. A further RM600 million was set aside to restore key cultural sites in Kuala Lumpur, and RM110 million was budgeted for improving tourist facilities, pursuing Unesco nominations for various cultural sites, and establishing ecotourism cooperation.