As Malaysia offers visa-free travel to Chinese tourists, will domestic operators see ‘benefit’?

From December 1, Chinese visitors can visit Malaysia visa-free for up to 30 days, but some tour operators fret over true ‘benefit’ for local businesses

Tour operators in Malaysia usually compete with larger agencies from China that organise prearranged, prepaid trips for their clients

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The Petronas Twin Towers beyond a residential area in Kuala Lumpur. In 2019, more than 3.1 million Chinese visited Malaysia, the third largest group behind Singapore and Indonesia. Photo: Bloomberg

Published: 8:30am, 28 Nov 2023Updated: 11:40am, 28 Nov 2023

Thirty-day visa-free travel for Chinese tourists to Malaysia is likely to bolster the country’s weak tourism numbers, but some tour operators fear the swift return of all-inclusive packages paid in China that leave little on the table for domestic businesses.

The announcement on Sunday by Prime Minister Anwar Ibrahim launches Malaysia into direct competition for tourist dollars with neighbouring Thailand – which rolled out its own visa exemptions for Chinese, Indian, Russians and Kazakhs ahead of peak travelling season.

From December 1, China and India join a list of countries whose citizens can travel to Malaysia on short trips without a visa.

A cable car on its way up to Langkawi’s Sky Bridge. Malaysians heading to China can stay for 15 days visa-free, while Chinese visitors will have double the time to travel in Malaysia. Photo: Reuters

The move came just days after China added Malaysia to its visa-free travel list on a one-year trial. Malaysians heading to China can stay for 15 days visa-free, while Chinese visitors will have double the time to travel in Malaysia.

In 2019, more than 3.1 million Chinese visited Malaysia, the third-largest group behind Singapore and Indonesia, according to data from government tourism authority Tourism Malaysia.

“It’s going to contribute a lot in traffic both ways, including for people in Malaysia to visit China as well,” said John Gong, a China Forum expert and professor at China’s University of International Business and Economics.

Tourism is a significant contributor to national coffers, with the sector and related industries pulling in 251.5 billion ringgit (US$53.7 billion) or 14 per cent of Malaysia’s gross national product in 2022, according to data from the department of statistics.