GEORGE TOWN: Since the introduction of visa-free travel with China in December 2023, many hotels in Penang have nearly doubled their business, with expectations of further growth as the policy expands, according to tourism industry insiders.
Malaysian Association of Hotels (MAH) Penang chapter chairman Tony Goh said the influx of Chinese tourists has revitalised the hotel industry after the Covid-19 pandemic.
On average, Chinese tourists book stays ranging from two days in three- to five-star hotels, often travelling with family or friends rather than in large tour groups.
“Since December 2023, most hotels have experienced double- digit growth.
“Without this influx of Chinese nationals, hotels would be suffering,” he said.
Currently, Malaysians can travel to China visa-free until Dec 31 this year, while Chinese nationals enjoy visa-free travel to Malaysia until Dec 31 next year.
Last month, it was announced that the Malaysia-China visa-free period has been extended for five years, allowing citizens of both countries to stay visa-free for up to 90 days cumulatively over six months in either country.
The agreement allows stays of up to 30 days for each entry into either country. It is expected to come into force once both countries complete the necessary bureaucratic procedures. The agreement was signed during President Xi Jinping’s visit to Malaysia.
Association of Tourism Attractions Penang (Atap) chairman Datuk Ch’ng Huck Theng echoed the optimism that the expanded visa-free travel could boost tourism in Penang.
“There are many attractions in Penang that cannot be duplicated in their own country, so tourists need to come and see for themselves. This is a good sign for us,” he said.
While the mutual visa exemption policy is a positive development, Penang Tourist Guide Association (PTGA) chairman Clement Liang said it should be carefully monitored to prevent abuse.
“While visa-free entry offers convenience and promotes tourism, it should not come at the expense of regulatory oversight.
“We have already heard of foreign photographers providing freelance services, such as wedding tourism packages. This is against local employment regulations. We should aim for sustainable tourism practices rather than mass tourism,” he said.
Penang tourism and creative economy committee chairman Wong Hon Wai said Penang is supportive of the initiative as it will further boost tourism and promote extended stays, especially during winter escapes.
He noted a significant increase in Chinese visitors during the recent five-day Labour Day Golden Week, with direct flights between China and Penang rising by 175% compared to the previous year.
During the Golden Week period in May 2024, there were 24 weekly flights operated by four airlines.
This year, the same period saw 66 weekly flights operated by 11 airlines, he added.
Wong said among the popular destinations were the George Town Unesco World Heritage Site and Penang Hill, which is a Unesco Biosphere Reserve.
He said between May 1 to May 4, the funicular train up the hill recorded a total ridership of 30,858, with visitors from China accounting to 13.7%.
