PETALING JAYA: Airlines say the expanded International and Charter Flight Matching Grant will help lower the commercial risks of opening new routes and support efforts to improve Malaysia’s tourism connectivity.
Batik Air chief executive officer Datuk Chandran Rama Muthy said the incentive would be particularly helpful for services to emerging markets, where new routes could take between six and 12 months to become commercially viable.
“Since this grant incentivises the entire value chain, it enables us to work with travel agents and hotel groups to create travel packages.
“When tour operators and hoteliers also possess matching funds to market and bundle accommodation with flights, seat inventory is absorbed far more rapidly to address the risk,” he said.
He added that the grant’s wider scope would make charter flights more viable, as airlines depend on travel agents and hotels to secure enough passenger bookings.
AirAsia also welcomes government initiatives that support tourism growth and make travel more accessible.
“We will continue to monitor market trends, assess travel demand and work closely with relevant stakeholders to support connectivity and tourism growth,” it said in a statement.
Malaysia Cruise Industry Association deputy president Datuk Seri Koh Yock Heng said the grant could help strengthen the link between international air travel and cruise tourism.
More international charter flights could bring foreign visitors to Malaysia, some of whom might choose to join cruise holidays departing from the country, he said.
Koh said fly-cruise packages could be developed for visitors arriving by air before boarding cruise ships operating from Malaysian ports, creating opportunities for travel agents, hotels and transport providers.
These could include cruises from Port Klang to Singapore and back, as well as itineraries linking Malaysia with destinations such as Penang, Langkawi and Phuket in Thailand.
However, Koh hoped the government would consider extending further incentives to international cruise operators to encourage them to use Malaysia as a home port.
He also called for greater promotional efforts for the Visit Malaysia campaign and more funding to upgrade tourist attractions.
Malaysian Inbound Tourism Association (MITA) president Mint Leong said the grants were crucial in attracting new routes, adding that the association had recently pushed for direct flights between Russia and Malaysia.
However, Leong said it remained unclear how much tour bus operators would benefit from the initiative, although she hoped the grant allocation could be increased.
She highlighted the challenges facing the sector, saying the number of tour buses had fallen sharply from 4,362 in March to 941 in September due to rising operating costs and the absence of diesel subsidies.
“If we want to promote tourism, we need to cater to group travellers,” Leong said, adding that demand remained strong among Indian tourists and elderly travellers who often rely on buses for their journeys.
She urged the government to consider extending diesel subsidies to tour bus operators, noting that e-hailing operators transporting tourists already receive fuel subsidies while tour bus operators do not.
