GEORGE TOWN: Penang is expecting an estimated 50 percent drop in Chinese tourist arrivals to the state in the short term after the recent kidnapping in Sabah and the missing MH370 incident, said Penang Chief Minister Lim Guan Eng (pic).
He said many Chinese tourist groups have cancelled their trip to Penang because of the recent incidents.
"They are bypassing Malaysia and going to Indonesia and other countries instead," Lim told a press conference at his office in Komtar on Saturday.
Lim said a hotel in Penang, who requested anonymity, experienced more than 100 room cancellations from a Chinese tour group this month.
"The kidnapping in Sabah is not an act of crime. It is an act of terrorism, an invasion.
"It is an invasion that threatened our nation's sovereignty," Lim added.
Lim hoped that the Federal Government can quickly rescue the hostages to lessen the impact resulting from the incident.