Holiday mode: Tourists feeding fish at one of the fish farms during a marine eco-tour in Bayan Lepas, Penang. — ZHAFARAN NASIB/The Star.
GEORGE TOWN: Tourism stakeholders want Budget 2026 to prioritise industry revitalisation, saying that a bigger allocation to Penang will help boost tourism promotion.
Malaysian Association of Hotels Penang chapter chairman Datuk Tony Goh said the increase in funds would help keep Penang’s status as a key destination, ahead of Visit Malaysia 2026 (VM2026).
“Currently, the Federal Govern-ment redistributes 50% of the tourism tax collected in each state. I hope they will increase Penang’s share from 50% to at least 70%.
“The allocation should be proportionate to our contribution so that Penang can continue progressing as a hub of investment and development,” he said.
Malaysian Association of Themeparks & Family Attractions (Matfa) president Tan Sri Richard Koh said grants for sustainability, infrastructure and training would help raise standards while creating jobs.
“Equally important is global recognition. Tourists abroad must know Malaysia is more than just beaches and heritage sites – it’s also a destination for world-class family fun activities,” he said.
Koh said with government-backed marketing campaigns, Matfa would be able to shine as part of Malaysia’s proud tourism story.
The Association of Tourism Attractions Penang chairman Datuk Ch’ng Huck Theng said the 2026 tourism programmes should be announced early to avoid disrupting tourists’ planning.
“To attract more visitors, especially foreigners, the 2026 events calendar must be released soon. This will give both foreign and domestic travellers enough time to plan their trips if we want to maximise the impact of VM2026,” he said.
Penang Tourist Guides Asso-ciation chairman Clement Liang said Budget 2026 should prioritise infrastructure upgrades to also help ease traffic congestion.
“Traffic remains a major concern, especially for travellers heading to key terminals like the Penang International Airport,” he said, urging better coordination and investment in public transport, including more buses, improved connectivity and proper parking bays.
To promote Penang’s cultural identity, Liang called for dedicated venues and government incentives to support traditional performances.
“Penang’s strength lies in its food, heritage and culture. But we must get the basics right, like maintaining our facilities, keeping walkways clear and ensuring hygiene so tourists feel safe and welcome,” he said.
Penang Convention and Exhibition Bureau chief executive officer Ashwin Gunasekeran said rising costs had put pressure on Penang’s thriving MICE industry.
(MICE stands for Meetings, Incentives, Conferences and Exhibitions.)
“While Penang remains a top MICE destination, the tax burden on suppliers and clients is a growing concern that could hurt our competitiveness.
“Although rental services are not directly taxed, SST is often included in final invoices due to bundled charges for manpower and other services, pushing up overall costs.
“Hopefully, the government can consider SST exemptions or waivers for the MICE sector under VM2026 to help organisers stay competitive.
“Cost is a key factor in winning bids. Without relief, clients may turn to neighbouring destinations offering better rates,” he said.
Penang’s MICE industry is continuing to grow, with 980 conferences recorded up to August, generating an estimated RM457mil. In 2024, the state hosted more than 2,000 events.
