As economic and global conditions evolve, they are making smarter choices on where they go, how much they spend and when they book.

According to AirAsia MOVE’s insights from forward bookings for travel between 1 July and 31 December 2026, travellers are increasingly prioritising value, convenience and thoughtful planning over volume alone.

The findings indicate that travellers are moving away from spontaneous decision-making towards more intentional travel in 2026, prioritising destinations that offer greater value, shorter travel times and meaningful experiences without compromising affordability.

Travellers are spending smarter, not less

One of the clearest shifts is not whether people are travelling, but how they are allocating their travel budgets. Average flight spending for the second half of 2026 is currently around 35% higher than the average hotel spend. The data suggests that travellers remain willing to invest in reaching their preferred destinations, while becoming more selective about where they stay.

Rather than choosing premium luxury accommodation, travellers are increasingly opting for hotels that provide the right balance of comfort, convenience and affordability.

This is reflected across the more than one million hotels available on MOVE worldwide, where 76% of bookings are for three- and four-star properties, demonstrating a clear preference for quality accommodation that delivers greater value.

Payday is when travellers turn plans into bookings

MOVE’s booking intelligence shows that nearly 40% of flight bookings are made for travel taking place between the 25th and 5th of each month, closely aligning with salary cycles across many ASEAN markets.

The pattern suggests that while travellers often begin researching and planning earlier, many choose to make the trip closer to the payday period, reflecting a more disciplined approach to discretionary spending.

As affordability becomes increasingly important, financial planning is becoming an integral part of the travel decision-making process.

Convenience is driving destination choices

Travellers continue to favour destinations that are easier and quicker to reach.

While domestic travel remains resilient across the region, international demand continues to be concentrated on destinations within four hours’ flying time, where travellers can maximise both their time and travel budgets.

Bookings for international flights under four hours increased by 14% in the second half of 2026 compared to the same period in 2025. The trend reflects growing demand for destinations that offer convenience, accessibility and strong overall value, making shorter regional getaways increasingly attractive.

International travel is expected to strengthen in H2

Travellers are also planning holidays earlier, with a growing proportion of bookings now being made more than 120 days before departure. The trend points to renewed confidence in longer-term travel planning after a period characterised by shorter booking windows.

Malaysia, Thailand, Indonesia, Japan and the Philippines are expected to remain among the strongest destination markets during the remainder of the year, reflecting continued demand for regional travel supported by strong connectivity and competitive value.

Millennials and Gen Z continue to power travel demand

Millennials remain the largest travelling generation on MOVE, accounting for 43% of all bookings, followed by Gen Z at 23%. Together, they represent almost two-thirds of bookings across the platform, reinforcing that younger travellers continue to shape the region’s travel economy.

(Source: AirAsia Move)

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The collaboration with the Events Industry Council (EIC) represents a strategic investment in Sarawak’s business events ecosystem, industry capabilities, and long-term competitiveness at a time when sustainability has become one of the most important priorities shaping the global business events sector.  

“As part of our strategic pillars of People and Partnerships, as well as Sustainability Leadership, we believe that investing in talent is investing in the future of the industry,” said Deputy State Secretary (Operation) and Chairman of BESarawak Datu Hii Chang Kee.

“Through SEPC, we are building a common language and understanding of sustainability across the business events ecosystem while equipping industry players with the tools to create long-term impact beyond the event itself, in line with Sarawak’s legacy-driven direction.”

The agreement between Business Events Sarawak and the Events Industry Council (EIC), signed at IMEX Frankfurt 2026, marks another milestone in Sarawak’s commitment to advancing sustainable business events.

“What makes SEPC important is that it is not only about making events greener. Sustainability can be integrated into decision-making, operations, partnerships, measurement, and long-term impact creation across the entire business events ecosystem,” stated BESarawak Chief Executive Officer Jason Tan Chin Foo. “We are proud to collaborate with the EIC to make this capacity building programme accessible to our industry partners across Sarawak as part of our efforts to strengthen professional development and support the broader aspirations of the Post COVID-19 Development Strategy (PCDS) 2030.”

“Through initiatives like SEPC, we are strengthening industry capabilities while advancing Sarawak’s vision for sustainable economic growth, environmental responsibility, and inclusive community impact,” he added.

As international organisations, associations, and event owners place greater emphasis on sustainability standards and responsible event delivery, the need for skilled professionals with recognised expertise has become increasingly critical. Through SEPC, industry players in Sarawak will gain access to internationally recognised training and practical knowledge covering sustainable event planning, social impact, supply chain management, accessibility, measurement, reporting, and responsible business practices.

“From the Events Industry Council’s perspective, Sarawak is demonstrating the kind of forward-thinking leadership we hope to see more of globally. Investing in professional education through the SEPC shows a genuine commitment to raising industry standards and empowering the local ecosystem with internationally recognised sustainability practices,” said Events Industry Council President and Chief Executive Officer Amy Calvert.

For more information on events in Sarawak, visit Business Events Sarawak. 

(Source: Your Stories — BESarawak)

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Having served the organisation in various leadership capacities over the past decade, Jason now leads BESarawak into its next phase of growth with a vision to strengthen Sarawak’s position as a globally competitive business events destination through purposeful collaboration, innovation and legacy-driven development. 

“I believe the world’s most impactful business events destinations are built on strong ecosystems and meaningful collaboration among government, industry, academia, associations and the media. That is how ideas and partnerships are transformed into action, creating opportunities that strengthen our economy, communities and future,” said Jason.

“Sarawak has built strong foundations over the years,” he added. “I aspire to bring these strengths together into a more connected and future-ready business events ecosystem by strengthening collaboration, aligning our collective capabilities, and creating an environment where innovation, partnerships and opportunities can thrive.

Together, we will strengthen Sarawak’s global competitiveness, deepen international partnerships, and advance the aspirations of the Post COVID-19 Development Strategy 2030 through high-impact business events that generate lasting economic, social and intellectual value, ensuring every event leaves a strong and meaningful legacy for Sarawak, while reinforcing our position as the Legacy Capital of Business Events in Malaysia and Borneo.”

Deputy State Secretary (Operation) and Chairman of BESarawak, Datu Hii Chang Kee, said Jason’s appointment reflects both continuity and confidence in the bureau’s future direction.

“Jason has consistently demonstrated strategic leadership and a strong commitment to advancing Sarawak’s business events industry. The Board has every confidence that he will build on BESarawak’s strong foundations and achievements, further strengthen the organisation and the wider business events ecosystem, and lead the industry towards an even more impactful and globally competitive future for Sarawak.”

He has played an instrumental role in advancing Sarawak’s business events industry through strategic destination development, international bidding, industry advocacy, legacy initiatives and stakeholder engagement. Since joining BESarawak in 2012, he has held key leadership positions across Business Development, International Event Bidding, Research, Marketing and Communications, contributing significantly to Sarawak’s emergence as one of Asia-Pacific’s leading business-events destinations.

About Business Events Sarawak 
Business Events Sarawak (BESarawak) is a strategic advisor driving legacy impact through business events. As a Sarawak Government non-profit, the agency provides advice, support, and services to develop and host impact-driven events that deliver lasting value. The business events industry is a key contributor to Sarawak’s Post COVID-19 Development Strategy 2030 (PCDS 2030), with BESarawak trusted to facilitate outcomes that support Sarawak’s sustainable growth and advance the United Nations’ Sustainable Development Goals (UN SDGs). For more information, visit www.businesseventssarawak.com. 

(Source: Your Stories — BESarawak)

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The route expansion to China reflects surging demand for travel between the two nations, driven by increasingly robust economic partnerships, allowing the national carrier to effectively tap into a broader, more diversified segment of China, its second-largest international market by the number of destinations served.

Malaysia Airlines serves Shenzhen with daily flights using Boeing 737-8 aircraft configured with 174 seats across business and economy cabins. Flight time is four hours and 10 minutes. The average round-trip fare on the route is USD 210.

Flight schedule Shenzhen

MH522 departs Kuala Lumpur (KUL) at 2105 and arrives in Shenzhen (SZX) at 0115 (plus a day).
MH523 departs Shenzhen (SZX) at 0245 and arrives in Kuala Lumpur (KUL) at 0645.

Flight schedule Changsha

MH520 departs Kuala Lumpur (KUL) at 2000 and arrives in Changsha (CSX) at 0105 (plus a day). 
MH521 departs Changsha (CSX) at 0205 and arrives in Kuala Lumpur (KUL) at 0650.

Daily flights to Changsha use a Boeing 737-8 with 174 seats across business and economy class cabins. Flight time is four hours and 45 minutes. The average round-trip fare on the route is USD 360.

Malaysia Aviation Group Chief Executive Officer of Airline Business Bryan Foong commented on the inaugural flights, saying: “The launch of our services to Shenzhen and Changsha marks a proud milestone in our continuous efforts to expand our network across China. By connecting Kuala Lumpur to these high-growth regional hubs, we are offering travellers greater convenience and flexibility while supporting stronger business, tourism and people-to-people ties between our two countries. As we welcome more visitors under the Visit Malaysia 2026 banner, this expansion also brings us closer to our vision of positioning Kuala Lumpur as a premier gateway to Asia and beyond”.

The new services support Malaysia’s tourism ambitions by leveraging the mutual visa-free arrangements while reinforcing Kuala Lumpur’s role as a key regional aviation hub. 

With the introduction of Shenzhen and Changsha, Malaysia Airlines now serves nine gateways across China, including Beijing (PKX), Shanghai (PVG), Guangzhou (CAN), Xiamen (XMN), Hong Kong (HKG), Taipei (TPE), and Chengdu (TFU), further strengthening its regional network.

To celebrate the new routes, Malaysia Airlines is offering special all-in return introductory fares starting from MYR 1,088. The promotional fares are available for purchase from now until 8 August 2026. 

(Source: Malaysia Airlines)

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The three-year collaboration, spanning 2026 to 2029, will see AirAsia and TAT work together on integrated promotional initiatives to pioneer new routes and exchange market insights to understand evolving travel trends better and unlock new opportunities for tourism growth.

AirAsia Group currently operates 123 weekly flights between Malaysia and Thailand through AirAsia Malaysia (AK) and Thai AirAsia (FD), connecting travellers across 8 direct routes. From Kuala Lumpur, AirAsia flies to Bangkok (DMK), Chiang Mai, Phuket, Krabi, and Hat Yai; from Penang to Bangkok (Don Mueang) and Phuket; and from Johor Bahru to Bangkok (DMK). Together, the extensive network continues to provide seamless and affordable connectivity between the two countries.

AirAsia Group Deputy Group Chief Executive Officer Farouk Kamal said: “In the first half of 2026, AirAsia flew more than 1 million guests between Malaysia and Thailand, reaffirming the strong demand for travel between these two key countries for our group. Through this strategic partnership with TAT, we look forward to building on this momentum by driving more visitor arrivals, strengthening connectivity and showcasing the very best of Thailand through impactful marketing and tourism initiatives.”

The partnership further strengthens the relationship between AirAsia and TAT while supporting Thailand’s “Amazing Thailand, Feel All the Feelings” campaign and Malaysia’s Visit Malaysia 2026 (VM2026) initiative through 2027. 

(Source: AirAsia)

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“The opening of Hilton Burau Bay Langkawi Resort reflects Hilton’s commitment to bringing its flagship brand’s experience to Malaysia’s most renowned leisure destinations,” said Hilton Area Vice President and head of Southeast Asia Alexandra Murray.

Spanning almost 22 acres, the resort features 251 rooms and suites across the Terrace, Deluxe Rooms, and Executive Suites categories, each offering a private terrace or balcony overlooking the rainforest, mountains, or sea.

The resort also features four restaurants and a wellness experience that extends across the resort’s three distinct swimming pools – a family-friendly hub, a dedicated kids’ pool and a secluded adults-only retreat. 

The opening reinforces Hilton’s strategic momentum in Malaysia, joining a diverse portfolio that includes the recently opened Hilton Shah Alam Glenmarie and Hilton Garden Inn Kota Kinabalu Tuaran. The resort’s debut sets the stage for a landmark year of growth, with Waldorf Astoria Kuala Lumpur and Conrad Kuala Lumpur due to open later this year.

Hilton Burau Bay Langkawi Resort is part of Hilton Honors, the guest loyalty programme for Hilton’s 27 brands. To celebrate the opening of Hilton Burau Bay Langkawi Resort, Hilton Honors members can earn 5,000 points with a minimum three-night stay. This offer is valid from now to 31 October 2026.

Hilton Burau Bay Langkawi Resort is located at 103 Teluk Burau, Mukim Padang Matsirat, 07000 Langkawi, Kedah, Malaysia.

(Source: Hilton)

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Adding further significance to the second edition, Yang Berhormat Dato Sri Tiong King Sing, Minister of Tourism, Arts and Culture, Malaysia (MOTAC), has confirmed his attendance as the guest of honour at the closing dinner on 30 July 2026, where he will also deliver the keynote address.

Building on the success of its inaugural edition, MATTA Connect 2026 is set to bring together buyers, sellers and travel industry stakeholders from across Malaysia and the ASEAN region, creating an unrivalled platform for business networking, destination promotion and strategic partnerships.

The Minister’s participation reflects the Government’s continued commitment to strengthening Malaysia’s tourism industry through close collaboration with the private sector. His presence at the Closing Dinner further reinforces the importance of MATTA Connect as a strategic platform for industry engagement, business growth and regional tourism cooperation.

“Following the success of our inaugural edition last year, MATTA Connect has established itself as an important platform for tourism businesses, buyers and destination partners to forge meaningful collaborations and unlock new business opportunities. We are honoured to welcome YB Dato Sri Tiong King Sing to this year’s event, whose presence reflects the importance of strong industry-government collaboration in driving Malaysia’s tourism growth,” said MATTA President Nigel Wong.

The two-day programme will feature structured B2B business-matching sessions, a Business Forum, destination presentations, and networking opportunities designed to facilitate high-quality business engagements among international buyers, tourism suppliers, destination management companies, airlines, hotels, attractions, and travel service providers.

Further strengthening the event’s regional significance, the ASEAN Tourism Association (ASEANTA) will attend MATTA Connect 2026, bringing together tourism leaders from across Southeast Asia and creating additional opportunities for cross-border collaboration and business development.

Ahead of the main event, selected semi-hosted international buyers will participate in an exclusive five-day, four-night Pre-Tour Programme from 24 to 28 July 2026, experiencing some of Perak’s signature tourism attractions, including Ipoh, Kuala Kangsar, the Lenggong Valley UNESCO World Heritage Site, and the Royal Belum Rainforest. The programme is designed to provide buyers with first-hand destination experiences before they participate in scheduled business meetings, enabling them better to promote Perak and Malaysia in their respective international markets.

Complementing the business matching sessions, the Business Forum will feature presentations by destination partners and industry experts, providing delegates with valuable insights into emerging tourism trends, digital transformation, innovation and market opportunities, further enhancing MATTA Connect’s value as a knowledge-sharing platform for the travel trade.

MATTA Connect 2026 is supported by Tourism Perak, alongside destination partners Penang Global Tourism and the Macao Government Tourism Office (MGTO). RHB Bank Berhad is the Official Bank Partner, while Spritzer EcoPark Sdn Bhd and Hup Seng Hoon Yong Brothers Sdn Bhd are supporting partners. MATTA is pleased to collaborate with hotels, including 1969 D’Kelly Hotel, MU Hotel, AC Hotel by Marriott, Hotel Excelsior, and Weil Hotel, playing an integral role in supporting the successful organisation of this year’s event.

“MATTA Connect is where partnerships are built, and business opportunities take shape. More than a business-matching event, it is a platform for the travel industry to connect, collaborate, and grow. We invite tourism businesses, buyers and industry professionals to join us in Ipoh and be part of Malaysia’s premier B2B travel marketplace,” said  MATTA Connect 2026 Organising Chairman Ken Chong.

Registration ongoing

Registration for MATTA Connect 2026 is open until 18 July 2026. Travel trade professionals, tourism organisations, buyers and sellers are invited to join Malaysia’s premier B2B travel marketplace and connect with industry leaders, international buyers and key decision-makers from across the region.

For registration and further information, visit www.mattaconnect.com,  or contact the MATTA Secretariat at +603-2774 1150, or email mattaconnect@matta.org.my.

(Source: MATTA)

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This year, the festival added another dimension to that experience by demonstrating how sustainability can be woven naturally into every stage of the visitor journey. 

From responsible consumption and waste management to meaningful partnerships that supported festivalgoers throughout the three-day celebration, RWMF 2026 showed that sustainability is not simply a message to be communicated — it is something to be experienced. 

Set against the backdrop of the iconic Sarawak Cultural Village and Mount Santubong, festivalgoers spent their days moving between cultural workshops, traditional craft demonstrations, indigenous music performances, food experiences, and evening concerts featuring artists from around the world. Throughout that journey, practical initiatives helped make the festival experience more enjoyable and encouraged visitors to play their part in caring for the environment. 

Among the organisations supporting this shared vision was F&N Malaysia, whose contribution extended beyond providing refreshments to promoting responsible participation in simple, accessible ways. 

This year’s partnership was especially meaningful as F&N celebrates 60 years in East Malaysia,  marking six decades of growing alongside the communities of Sabah and Sarawak. 

“East Malaysia has been an important part of F&N’s journey since 1966, so supporting this festival is a natural extension of our connection to the community. It’s an opportunity to celebrate the richness of tradition, foster cultural exchange, and continue supporting communities, in line with what we stand for — Pure Enjoyment, Pure Goodness,” said Leong Wai Yin, Director of Marketing and Modern Trade Sales, F&N. 

For a festival that unfolds almost entirely outdoors beneath the rainforest canopy, keeping visitors refreshed is an important part of creating a comfortable and enjoyable experience. Through trusted brands including 100PLUS and Borneo Springs, F&N supported festivalgoers as they explored the extensive festival grounds, allowing them to fully immerse themselves in the performances, workshops, and cultural activities that define RWMF. 

The partnership also reflected the festival’s growing emphasis on sustainability through practical actions that encouraged participation rather than prescription. 

Festivalgoers were invited to recycle used beverage cartons at the Borneo Springs booth in exchange for complimentary Borneo Springs drinking water, transforming responsible waste disposal into a simple yet meaningful festival experience. An interactive display also introduced visitors to F&N’s broader sustainability journey, helping to raise awareness of responsible consumption and environmental stewardship in an engaging and accessible way. 

These initiatives complemented the festival’s broader sustainability aspirations by demonstrating how everyday choices—even something as simple as recycling a beverage carton—can collectively contribute to a cleaner and more responsible event environment. 

The activation also reflected F&N’s broader sustainability efforts, including the use of 100% recycled PET (rPET) bottles for Borneo Springs drinking water, its commitment to zero waste to landfill across its beverage and dairy manufacturing operations, and community recycling initiatives that encourage greater environmental awareness beyond the festival grounds. 

As large-scale cultural events continue to evolve, partnerships such as these demonstrate how organisations can contribute meaningfully without detracting from the festival experience itself. Rather than taking centre stage, initiatives that support visitor wellbeing, encourage responsible behaviour, and complement the festival’s sustainability goals become part of the experience, enriching the overall journey for festivalgoers. 

This reflects the very spirit of RWMF, where music, culture and nature exist in harmony.  Sustainability is not treated as a standalone initiative. Still, it is integrated into the way visitors experience the festival—from appreciating indigenous traditions and biodiversity to making conscious choices that help preserve the environment in which the festival takes place. 

As the curtains closed on another successful edition of the Rainforest World Music Festival, visitors departed with memories of unforgettable performances, meaningful cultural exchanges, and the unique atmosphere that only Sarawak can offer. 

Equally significant was the festival’s continued demonstration that world-class cultural events can inspire more responsible ways of gathering and celebrating. Through collaborations with like-minded partners such as F&N Malaysia, RWMF 2026 showed how sustainability, community and culture can come together to create an experience that resonates well beyond the final encore.

For more information on Sarawak’s tourist attractions, visit: Sarawak Tourism Board. 

(Source: Your Stories — Sarawak Tourism Board)

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RAYS 2026, the third edition of the Rainforest Youth Summit, was organised by the State  Government of Sarawak and Sarawak Tourism Board (STB), endorsed by the Ministry of Tourism,  Creative Industry and Performing Arts Sarawak (MTCP), and supported by the Ministry of Youth,  Sports and Entrepreneur Development Sarawak (MYSED).

Held in Kuching from 24 to 26 June  2026, the summit convened delegates, speakers and partners from across ASEAN and beyond. 

Hosted in Sarawak, one of the world’s most ecologically significant rainforest regions, RAYS  situates climate and sustainability dialogue within the realities of living landscapes, communities and cultures. 

Held under the summit theme, Youth: Many Ways, One Planet, the forum created a space for young people to move beyond discussion and contribute to shared priorities in climate action, sustainability, governance, and collective responsibility. 

As the first initiative of its kind at RAYS, the Planet Futures Forum was introduced not as a standalone summit activity, but as the foundation for a continuing youth-led platform that carries discussions, priorities and recommendations beyond the summit. 

Guided by the principle of Two-Eyed Seeing, the forum brought together indigenous wisdom alongside Western knowledge systems and practices, recognising that meaningful and lasting solutions require diverse perspectives, lived experiences and ways of knowing. 

The discussions were organised around three key thematic areas: 

• Ways of Knowing  

• Living with the Earth  

• Power & Responsibility  

Supported by the Sunway Centre for Planetary Health as Knowledge Partners, delegates developed and refined recommendations that were relevant, evidence-informed and grounded in the realities faced by communities and young people today. 

The forum resulted in the selection of nine priority recommendations across the three thematic areas. These recommendations were subsequently presented during the Declaration Congress,  where delegates endorsed the Preliminary RAYS Youth Declaration 2026. 

The endorsement marked a significant outcome of RAYS 2026, reflecting a shared commitment among delegates to carry forward youth priorities into future conversations on climate,  sustainability and community action.

Throughout the forum, delegates were supported by Knowledge Holders and Allies, including YB  Datuk Gerald Rentap Jabu, Deputy Minister for Youth, Sports and Entrepreneur Development, Sarawak; Dr Sharzede Datu Haji Salleh Askor, Chief Executive Officer of Sarawak Tourism Board;  as well as RAYS speakers including Diwigdi Valiente, Dr Dzaeman Dzulkifli and others who contributed perspectives from governance, conservation, indigenous leadership and environmental practice. 

Closing the session, YB Datuk Gerald Rentap Jabu underscored that the Preliminary RAYS Youth Declaration represents the beginning of a longer journey. He encouraged delegates to continue strengthening the document through consultation, dialogue, and collective ownership, with the aspiration that it would inform future action and decision-making. 

The Planet Futures Forum is intended to continue beyond RAYS 2026. Following the summit, the  Preliminary RAYS Youth Declaration will undergo further consultation through a region-wide survey, giving young people beyond the RAYS community the opportunity to share their perspectives and strengthen the recommendations. 

The feedback gathered will contribute towards the development and publication of the Final RAYS  Youth Declaration. This will ensure that the priorities identified during the forum continue to evolve through wider youth participation, dialogue and collective ownership. 

In this way, the Planet Futures Forum establishes a longer-term pathway for youth voices to inform future dialogue and meaningful action. It reflects the belief that a more sustainable future cannot be shaped by one generation, sector or knowledge system alone, but through many voices, many ways of knowing and one shared Planet. 

(Source: Your Stories — Sarawak Tourism Board)

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MATTA acknowledges the government’s commitment to fiscal prudence but firmly disputes the recent characterisation by the Minister of Finance II, Datuk Seri Amir Hamzah Azizan, that diesel subsidies for tourism transport operators would only benefit foreign tourists. 

MATTA strongly believes that a broader view of how these vehicles are used would support the case for their inclusion in the scheme.

“Tourism vehicles serve both Malaysian and international tourists every day. Licensed tourism transport operators provide services not only for inbound visitors but also for domestic holidaymakers, school groups, corporate events, incentive travel, religious pilgrimages, educational tours, and community programmes.

It is therefore incorrect to assume that diesel subsidies for tourism transport operators would benefit only foreign tourists.

To say this subsidy only helps foreigners ignores the reality of how our tourism transport industry operates. This decision, if left unchanged, will raise fares for Malaysians and may even force them to consider utilising unlicensed service providers,” said MATTA President Nigel Wong.

The removal of diesel subsidies will directly increase operating costs for tourism transport operators, which will inevitably be passed on through higher fares and more expensive travel packages for both Malaysians and international visitors.

As the country accelerates its Visit Malaysia 2026 campaign, higher transport costs threaten to undercut the very affordability that drives domestic tourism and inbound arrivals.  

More affordable tourism services would encourage Malaysians to explore destinations within the country rather than travel abroad, while also enhancing Malaysia’s appeal to international visitors.

This would support the growth of both domestic and inbound tourism, in line with the government’s objectives to strengthen the tourism sector.

Higher tourism activity generates a multiplier effect throughout the economy. Increased visitor arrivals and domestic travel create greater business opportunities for hotels, restaurants, attractions, retailers, transport operators, and local communities.

This translates into higher business revenue, more employment opportunities, increased tax collections, greater foreign exchange earnings, and stronger economic growth. In the longer term, these economic benefits could outweigh the costs of providing targeted diesel subsidies to licensed tourism transport operators.

This issue is especially significant for destinations such as Sabah, where tourism relies heavily on road transportation due to the state’s vast geography and dispersed attractions.

High transport costs risk making destinations across Malaysia less competitive and could discourage both domestic and international travel, particularly as the nation intensifies its Visit Malaysia 2026 campaign.

Tourism is an intensely competitive industry. Malaysia is competing directly with neighbouring Southeast Asian destinations such as Thailand, Indonesia, Vietnam, and the Philippines, many of which continue to provide various forms of support to their tourism sectors. Any increase in operating costs reduces Malaysia’s competitiveness and may divert visitors to alternative destinations.

Since the onset of the global energy price crisis, MATTA has worked closely with the Ministry of Tourism, Arts and Culture (MOTAC) to address the challenges faced by the tourism industry.  

MATTA has presented its case to the Ministry of Finance for a review of the diesel subsidy programme’s exclusions. 

MATTA’s request for a review

Review the exclusion of licensed tourism transport operators from the diesel subsidy programme, considering the broader Malaysian public they serve.

Engage with MOTAC and industry stakeholders to explore a targeted, well-governed subsidy mechanism for licensed operators.

Consider tourism transport as a strategic enabler of both domestic mobility and the tourism economy, in support of VM 2026.

The government has repeatedly emphasised the importance of tourism as a key contributor to the national economy. Ensuring that tourism transport operators remain competitive is fully aligned with that objective and with the aspirations of Visit Malaysia 2026.

(Source: MATTA)

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