According to a report published in The Star today, retailers are expecting a significant increase in sales receipts during the Chinese New Year season early in 2019. This is due to the government’s 30-day visa-free travel policy, which aims to attract foreign tourists to Malaysia.
President of the Malaysia Shopping Malls Association Tan Sri Teo Chiang Kok told the newspaper that since promotional events are already scheduled to take place, it is a little bit late for retailers to take advantage of the visa-free initiative for visitors from China and India.
However, he also mentioned that shopping centers are looking forward to a spike in foreign visitors beginning with the Chinese New Year holiday, which takes place on February 10 and 11, 2024, and anticipates that these visitors will take advantage of the weak ringgit to make large purchases while in Malaysia.
He was reported to have stated, “We have been lobbying for this visa-free policy for tourists, especially for visitors from China and India because they used to be our biggest tourist arrivals.”
Similar expectations for big-ticket spending by foreign visitors to Malaysia with the visa-free policy that streamlines the travel process were also expressed by Uzaidi Udanis, chairman of the Consortium of Inbound Tourism Alliance, who stated that its members are already receiving a lot of inquiries.
“The effect is evident; many inquiries and expressions of interest have been made.” Bookings are coming in, and our agents are working hard to get quotes.
Uzaidi told The Star, “We are banking on the Chinese New Year holidays in February and during the winter in March for our Chinese and also Indian markets. We are hoping the Christmas season will be a bit better.”
Local retailers saw a spike in sales activity in October, according to Malaysia Retailers Association president Datuk Andrew Lim, and he is optimistic that sales will recover to pre-pandemic levels last seen in 2019.
“The indications are positive. Shopping has resumed among our local customers, particularly as the school breaks, year-end holidays in December, Christmas, and New Year’s Eve draw near.
He was quoted as saying, “Hopefully, these three months will recover some sales for our members.”
However, he added that many Chinese visitors would have already booked their travel for their year-end vacations and the Chinese New Year season in 2024, so they might not come here as soon.
“We don’t expect an immediate effect, but this is a positive move nonetheless.
“We anticipate that the impact will occur following the Lunar New Year. All foreign visitors have already booked their travel arrangements as of right now, he was cited as saying.
According to Lim, domestic demand drives retail sales more so than the contribution of foreign tourists in 2019, prior to the Covid-19 pandemic that halted international travel beginning in 2020.
He also suggested that one of the reasons for the slow start in inbound travel could be down to national carrier Malaysia Airlines’ subdued operations.
“One of the factors is that MAS is not in full force yet. So, the airline must start flying again as it used to in 2019, to bring a lot of foreign tourists into Malaysia,” he was quoted as saying, using the old acronym for the airlines.
Lim called on other local carriers, namely Firefly and AirAsia, to prioritise flights to Malaysia to help revive the retail sector.
The Star also stated that Datuk Seri Tiong King Sing, Minister of Tourism, Arts, and Culture, has advised local tourism providers to get ready for an anticipated surge in visitors.
He did, however, state that his ministry will not make public its goal for the number of Chinese and Indian tourists it hopes to welcome to Malaysia in the upcoming year.
“We must monitor the quantity of travelers arriving without a visa, since this convenience for travelers from China and India only started on December 1st,” he was cited as saying.
Rather, he claimed that 26 million foreigners had entered Malaysia between January and November 15 of this year, according to Immigration Department data.
