Shifting habits: People attending the four-day Malaysia Cultural Festival 2025 at Dataran Bandaraya in Johor Baru. While tourist arrivals remain steady, experts say the stronger ringgit is causing subtle changes to their spending. — THOMAS YONG/The Star
PETALING JAYA: The ringgit may be on an upward trend, but tourism groups say the government should prepare ahead with more targeted campaigns to woo more visitors.
Malaysia Inbound Tourism Association president Mint Leong said the stronger ringgit has had limited impact so far on visitor numbers.
“At this moment, we don’t see the stronger ringgit affecting incoming tourists to Malaysia.
“Our arrivals are actually increasing,” she said.
Leong said tourists typically travel on fixed budgets, so a small change in the exchange rate only slightly alters what they can take home.
“They will still come and they will still spend.
“Maybe they buy a little bit less, or they change from a five-star to another category, but the trips go on,” she said.
She cautioned, however, that Malaysia’s edge as a shopping destination could erode if the ringgit continues to climb.
“One of our strong points is branded goods and tax-free shopping.
“If our ringgit goes higher and there’s not much price difference compared to their own countries, they may just buy at home,” Leong said.
She urged more focused, segment-specific promotions targeting key markets such as Singapore, Indonesia, Vietnam, China and India.
The promotions could include tourist-only vouchers, experiential campaigns and mall-based incentives aimed at getting visitors to spend more while they are here.
Malaysian Tourism Federation president Dr Sri Ganesh Michiel, who also heads the Malaysia Budget and Business Hotel Association, concurred that arrivals are still on an upward trend.
However, the stronger ringgit is causing subtle changes on how visitors spend.
“What we’re seeing is more selective spending – travellers are comparing value more carefully and being a bit conservative on shopping, optional tours and upgrades,” he said.
He said Malaysia remains competitively priced in Asean, but the country cannot rely on exchange rates alone.
“Countries like Indonesia, Thailand and Vietnam still have exchange advantages, so we must compete on value-added experiences – safety, diversity, food, eco-tourism and family-friendly products – rather than just price,” he said.
Sri Ganesh said hotels and airlines that rely heavily on imported equipment and materials stand to benefit from lower costs, while smaller tourism operators and retailers may feel more pressure when tourists tighten discretionary spending.
“In short, the stronger ringgit reshapes spending behaviour, but it does not remove opportunities.
“Every segment – from budget to high-end – can still do well if they adapt and position themselves strategically,” he added.
