Retailers are expecting that the visa-free travel for Chinese and Indian visitors would further improve sales, especially for the upcoming Chinese New Year, even if year-end sales have been positive.
Retailers hope for better sales in 2024 as the 30-day visa-free travel initiative for visitors from China and India to Malaysia, which started on December 1, will remain in effect until December 31 of that year, even though it may be too late to catch the tourist crowd for Christmas and year-end shopping.
The head of the Malaysia Shopping Malls Association, Tan Sri Teo Chiang Kok, stated that while the Christmas and year-end sales were already underway, it was too late to draw in foreigners. However, shopping centres anticipate a surge in international visitors, presumably starting with Chinese New Year.
He said that because Malaysia was comparatively less expensive for visitors, a more lenient visa policy would increase its competitiveness in the regional tourism industry.
As China and India used to be our top tourist arrival countries, he continued, “We have been lobbying for this visa-free policy for tourists.”
Chairman of the Consortium of Inbound Tourism Alliance Uzaidi Udanis stated that the effect of the move to allow visitors from China and India to travel without a visa was already being felt.
“It’s a critical endeavour to increase tourism since our goal is to get affluent tourists, like Chinese businesspeople, to come golfing in Malaysia for the weekend.
“After the initiative to waive visa requirements, they can board a plane and come here.”
“The effect is evident; many inquiries and expressions of interest have been made.” Bookings are rolling in, and our agents are working hard to get quotes.
“We are banking on the Chinese New Year holidays in February and during the winter in March for our Chinese and also Indian markets,” Uzaidi stated. “We are hoping the Christmas season will be a bit better.”
According to Datuk Andrew Lim, president of the Malaysia merchants Association (MRA), merchants saw a boost in sales activity in October and predicted stronger months to come.
Although it’s still unclear if it will reach the same heights as in 2019, Lim was upbeat.
“The indications are positive. Shopping has resumed among our local customers, particularly as the school breaks, year-end vacations in December, Christmas, and New Year’s Eve draw near.
“Perhaps, our members will recover some sales over the next three months,” he stated.
He said, though, that many Chinese visitors had already scheduled their year-end vacations and Lunar New Year celebrations, so it was doubtful that they would visit Malaysia anytime soon given the 30-day visa exemption.
Lim stressed that it could take some time for the government’s move to benefit Chinese visitors, even if he praised it for being a welcome beginning.
“We don’t expect an immediate effect, but this is a welcome move nonetheless.
“We anticipate that the impact will occur following the Lunar New Year. All overseas visitors have already booked their trip arrangements as of right now,” he said.
He emphasised how, in contrast to 2019, retail sales are now mostly driven by domestic demand, with little influence from overseas travellers.
He stated that a number of reasons, including Malaysia Airlines’ (MAS) muted operations, were involved in this.
“MAS is not yet fully operational, which is one of the issues. Therefore, in order to attract a large number of international visitors to Malaysia, the airline needs to resume operations like they did in 2019,” he stated.
Lim asked airlines with operations in Malaysia, such as Firefly and AirAsia, to give Malaysia top priority when scheduling flights.
He went on to say that a recovery in visitor numbers was essential for the retail industry.
The retail traffic during the last three months of the year is anticipated to resemble that of 2022, according the Malaysia Retail Industry Report published by Retail Group Malaysia.
Malaysian customers will continue to make purchases. Due to the abbreviated school break this year—there are just two weeks left—the holiday sales will not be the same as pre-Covid levels, the study stated.
It also mentioned that, in comparison to the same period in 2022, the retail sector’s third-quarter 2023 retail sales growth rate of 2.7% was better than anticipated.
“The most recent quarterly performance exceeded market expectations.
According to the research, “Members of MRA and Malaysia Retail Chain Association (MRCA) had projected the third quarter growth rate of 1.4%,” while 2.1% was the growth rate projection for the fourth quarter of 2023.
The research also said that Malaysian consumers’ buying power will continue to be negatively impacted by rising living expenses.
As for local tourism stakeholders, Tourism, Arts, and Culture Minister Datuk Seri Tiong King Sing stated he had alerted them to an expected spike in visitor arrivals to Malaysia.
He mentioned the proactive measures taken to boost Malaysian travel to China and India by taking advantage of the recent 30-day visa exemption granted to visitors from those countries.
He also conveyed his optimism that this will draw a large number of tourists to Malaysia.
In answer to questions concerning the ministry’s goal for the number of Chinese and Indian visitors to Malaysia in the upcoming year, Tiong stated that no information will be shared.
“We must monitor the quantity of travellers arriving without a visa, since this convenience for travellers from China and India only started on December 1st,” he stated.
He stated that 26 million immigrants entered Malaysia between January and November 15 of this year, citing figures from the Immigration Department.
He says there are continuous attempts to promote local tourism-related sectors in Malaysia so they can increase their earnings, and he believes that the visa exemptions would draw several million additional international tourists to the country.
