The Malaysian Tourism Federation (MTF) has commended the Government and Prime Minister YAB Dato’ Seri Anwar Ibrahim for prioritising the tourism industry in the 2026 National Budget, announced in conjunction with the upcoming Visit Malaysia Year (VMY) 2026.
The Federation said the Government’s decision to introduce tax rebates of up to RM1,000 for Malaysians visiting local attractions and cultural programmes reflects a strong commitment to encouraging domestic tourism and strengthening the country’s visitor economy.
MTF also welcomed a series of tax incentives for tour operators and event organisers, which it said would boost Malaysia’s competitiveness in the global tourism market.
Boosting Domestic and International Tourism
Among the key measures announced, tour operators will receive a 100% income tax exemption on the increased value of income derived from tour packages to Malaysia, while companies and associations that organise international conferences, exhibitions, and incentive events will also benefit from targeted tax incentives.
Additionally, qualified tourism operators can now claim tax deductions of up to RM500,000 for renovations and upgrades to their premises, a move that encourages continuous improvement in service quality and visitor experience.
MTF said such incentives will ensure that Malaysia’s tourism infrastructure remains competitive, attractive, and aligned with international standards.
“Such proactive support motivates licensed tourism players to reinvest in their businesses, enhance their standards, and align with Malaysia’s vision of delivering world-class tourism experiences,” said Dr. Sri Ganesh Michiel, President of the Malaysian Tourism Federation.
Strong Fiscal Commitment to Tourism
MTF praised the Government’s allocation of over RM700 million to further invigorate the tourism sector, an initiative aimed at attracting 47 million visitors and generating RM329 billion in revenue throughout the Visit Malaysia Year 2026 campaign.
The Federation described this as a clear reflection of Malaysia’s determination to reclaim its position as a top global tourism destination. It also stressed that the funding must be used efficiently and transparently, benefiting only licensed and tax-compliant operators who contribute legitimately to the national economy.
“This strong fiscal commitment sends a clear message that Malaysia is serious about reclaiming its position as a top global tourism destination,” said Dr. Sri Ganesh.
“With such a substantial investment, it is vital that every ringgit is utilised effectively, benefiting only licensed and registered operators who uphold service quality, safety, and contribute fairly through taxes.”
Ensuring Integrity and Fair Competition
MTF emphasised that the benefits of this investment should be channelled exclusively to licensed, regulated, and tax-compliant tourism operators. The Federation cautioned that extending such benefits to unlicensed players could lead to unfair competition, diminished service standards, and potential tax leakage.
“By ensuring that only licensed and regulated operators receive these incentives, we uphold the integrity of Malaysia’s tourism ecosystem and ensure that the Government’s investment translates directly into sustainable economic returns,” added Dr. Sri Ganesh.
Financial Readiness and Contingency Planning
To ensure continuity in the implementation of Visit Malaysia Year 2026 initiatives, MTF also recommended that the federal and state governments maintain a contingency or reserve budget. This, it said, would help manage potential financial shortfalls and keep campaigns and infrastructure projects on track, even in the face of unforeseen challenges.
“Being financially prepared with contingency allocations ensures the success and continuity of the Visit Malaysia Year 2026 campaign, even when unexpected challenges arise,” noted Dr. Sri Ganesh. “Tourism is dynamic; readiness and adaptability are essential to meet emerging global trends.”
National Responsibility and Community Support
MTF expressed appreciation for the Ministry of Tourism, Arts and Culture (MOTAC) for its strong leadership and commitment in preparing for Visit Malaysia Year 2026. The Federation also called on every Malaysian to play a part in the campaign by fostering a safe, positive, and welcoming environment for visitors.
“The success of Visit Malaysia Year 2026 depends on all of us,” said Dr. Sri Ganesh. “Let us unite in spirit, avoid negative publicity or actions that may harm the country’s image, and show the world the warmth, diversity, and unity that define Malaysia.”
The Federation urged Malaysians to demonstrate the nation’s renowned hospitality and cultural diversity, serving as ambassadors who embody the true essence of Malaysia.
