tourism sector in malaysia

Tourism in Malaysia

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Tourism in Malaysia is big business! But why is this industry so important and how is it best managed? Read on to find out…

Geography of Malaysia

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Malaysia, a Southeast Asian nation known for its diverse cultures and verdant landscapes, holds a prominent position on the global tourism map. Within the tourism industry, Malaysia offers a multitude of opportunities, but also faces its own set of challenges. This article seeks to explore the depths of Malaysia’s tourism sector, emphasising its economic contributions, growth trajectories, and the imperative for sustainable and inclusive development.

Malaysia is a Southeast Asian country located on the Malay Peninsula and the island of Borneo. It is divided into two main regions: Peninsular Malaysia and East Malaysia.

• Peninsular Malaysia: This region is situated on the southern part of the Malay Peninsula, bordered by Thailand to the north and connected to the island of Singapore via a causeway. The landscape of Peninsular Malaysia is characterized by a coastal plain along the western and eastern coasts, with mountainous regions in the interior. The Titiwangsa Mountains, running from north to south, form the backbone of the peninsula and include the highest peak, Mount Tahan. The peninsula is also home to several rivers, including the Perak, Pahang, and Johor rivers.
• East Malaysia: This region occupies the northern part of the island of Borneo, sharing borders with Indonesia and Brunei. It is divided into two states: Sabah and Sarawak. East Malaysia features a diverse geography , including coastal plains, hilly areas, and mountain ranges. Mount Kinabalu, the highest peak in Malaysia, is located in Sabah. The region is known for its lush rainforests, which are part of the biodiverse ecosystems of Borneo.

Malaysia has a tropical climate, with high temperatures and humidity throughout the year. The country is also rich in natural resources, including oil, gas, timber, and minerals. Its coastal areas are dotted with beautiful beaches and islands, such as Langkawi and Tioman, which attract tourists from around the world.

Additionally, Malaysia has several significant bodies of water. The South China Sea borders Malaysia to the east, while the Strait of Malacca separates Peninsular Malaysia from the Indonesian island of Sumatra. The country is also home to numerous rivers and inland bodies of water, including Lake Kenyir, which is the largest man-made lake in Southeast Asia.

Overall, Malaysia’s geography offers a mix of diverse landscapes, from mountains and rainforests to coastal plains and stunning islands, making it a visually captivating and ecologically significant country.

The tourism industry in Malaysia has emerged as a vital economic driver, contributing substantially to the nation’s GDP and acting as a catalyst for socio-cultural development. Malaysia’s diverse landscapes, rich cultural heritage, and strategic geographical location have positioned it as an attractive destination for international and domestic tourists alike. This paper aims to provide an academic exploration of the various facets of Malaysia’s tourism industry, encompassing its attractions, government initiatives, challenges, sustainable practices, and future prospects.

Malaysia boasts a plethora of natural and man-made attractions that captivate visitors from around the globe. The country’s scenic beauty encompasses pristine beaches, lush rainforests, majestic mountains, and captivating islands. The iconic Petronas Twin Towers in Kuala Lumpur, historic sites like Melaka City, and the UNESCO World Heritage-listed George Town further add to Malaysia’s allure. Additionally, the country’s cultural diversity, represented by its vibrant festivals, culinary delights, and traditional arts and crafts, offers visitors a unique and immersive experience.

Malaysia’s cultural heritage is a significant draw for tourists seeking to explore the country’s rich history and multicultural society. The nation is home to a harmonious blend of Malay, Chinese, Indian, and indigenous cultures, which coexist and contribute to Malaysia’s distinct identity. Visitors can immerse themselves in cultural celebrations such as Hari Raya Aidilfitri, Chinese New Year, and Deepavali, or delve into traditional practices and arts, such as batik painting, shadow puppetry, and traditional music performances.

The Malaysian government recognizes the tourism industry’s potential for economic growth and has implemented several initiatives to promote and support its development. The Ministry of Tourism, Arts, and Culture (MOTAC) spearheads efforts to enhance tourism infrastructure, attract investments, and implement policies to facilitate tourism growth. The “Visit Malaysia” campaign, launched periodically, serves as a platform to showcase the country’s attractions and increase visitor arrivals. Furthermore, collaborations with international organizations and stakeholders help bolster Malaysia’s tourism reputation on a global scale.

The tourism industry in Malaysia faces certain challenges that require attention for sustained growth. Factors such as seasonality, changing travel patterns, and global economic fluctuations influence tourist arrivals. Ensuring visitor safety and security, preserving environmental sustainability, and maintaining cultural authenticity amidst rapid development pose ongoing challenges. Furthermore, competition from neighboring countries and emerging destinations necessitates continuous innovation and marketing strategies to remain competitive.

Recognizing the importance of sustainable tourism, Malaysia has made significant strides towards promoting environmentally and socially responsible practices within the industry. Efforts include the establishment of eco-tourism destinations, conservation projects, and community-based tourism initiatives that empower local communities. The Green Tourism Initiative and the Malaysian Sustainable Tourism Criteria are notable examples of the government’s commitment to sustainable tourism development.

Malaysia’s tourism industry holds immense potential for future growth and development. The government’s focus on diversifying tourism products, improving connectivity, and enhancing visitor experiences paves the way for continued success. Furthermore, emerging trends such as ecotourism, wellness tourism, and experiential travel present opportunities for innovation and niche market development. The country’s strategic location within the ASEAN region and its well-established infrastructure further contribute to its favorable prospects in the global tourism arena.

The tourism industry in Malaysia represents a vibrant and dynamic sector that contributes significantly to the nation’s economy and cultural fabric. With its diverse attractions, rich cultural heritage, proactive government initiatives, and commitment to sustainable practices, Malaysia continues to attract a steady stream of visitors from across the globe. By addressing challenges and embracing emerging trends, the industry is poised for continued growth and the realization of its full potential in the years to come.

Now lets take a look at some of the key statistics that help us better understand the scale of tourism in Malaysia:

• Tourist Arrivals: In 2019, Malaysia welcomed a record 26.1 million international tourists, which increased by 5.1% compared to the previous year.
• Top Source Countries: The main source countries for tourism in Malaysia are Singapore, Indonesia, China, Thailand, and India.
• Tourism Revenue: In 2019, tourism receipts in Malaysia reached approximately RM86.14 billion (around USD 20.6 billion).
• Employment: The tourism industry in Malaysia provides significant employment opportunities, with around 3.5 million people working directly or indirectly in tourism-related jobs.
• UNESCO World Heritage Sites: Malaysia boasts four UNESCO World Heritage Sites, including George Town, Melaka, Gunung Mulu National Park, and Kinabalu Park.
• Medical Tourism: Malaysia is a popular destination for medical tourism, with state-of-the-art facilities and competitive pricing. In 2019, the country received over 1.3 million medical tourists.
• Eco-Tourism: Malaysia’s rich biodiversity and natural beauty attract eco-tourists. The country has numerous national parks, rainforests, and marine parks, offering diverse flora and fauna.
• Shopping Tourism: Malaysia is known as a shopping paradise, particularly in cities like Kuala Lumpur and Penang. The country offers a wide range of shopping malls, markets, and duty-free zones.
• Muslim-Friendly Tourism: Malaysia is a Muslim-majority country and has developed a reputation as a Muslim-friendly destination. Halal food, prayer facilities, and Islamic attractions cater to the needs of Muslim travelers.
• Cruise Tourism: Malaysia has become a popular destination for cruise ships. Ports such as Port Klang, Penang, and Langkawi attract many international cruise liners, contributing to the growth of cruise tourism in the country.

Malaysia, a multiethnic country with a unique fusion of Malay, Chinese, Indian, and indigenous cultures, offers a wide range of tourist attractions. This study focuses on the most popular destinations that have achieved widespread acclaim and consistently attract a significant number of visitors.

• Petronas Twin Towers: The Petronas Twin Towers, located in Kuala Lumpur, the capital city of Malaysia, stand as an iconic symbol of modern architecture and engineering prowess. These identical towers, reaching a height of 452 meters, held the title of the world’s tallest buildings from 1998 to 2004. Visitors are captivated by the towers’ stunning design, the Skybridge connecting the two structures, and the observation deck offering panoramic views of the city.
• George Town: Designated as a UNESCO World Heritage Site, George Town is a historic city located on the island of Penang. Its unique blend of architectural styles, including British colonial buildings, traditional Chinese shophouses, and Indian temples, showcases the diverse cultural influences that have shaped Malaysia’s history. The city’s vibrant street art, bustling markets, and delectable local cuisine contribute to its immense popularity among tourists.
• Langkawi: Langkawi, an archipelago of 99 islands situated in the Andaman Sea, is renowned for its breathtaking natural beauty. Pristine beaches, lush rainforests, and clear turquoise waters create an idyllic setting for leisure and relaxation. The island offers various attractions such as the Langkawi Cable Car, which provides visitors with stunning panoramic views, and the UNESCO-listed Kilim Karst Geoforest Park, where tourists can explore mangrove forests and limestone caves.
• Mount Kinabalu: Located in the state of Sabah, Mount Kinabalu is the highest peak in Southeast Asia, standing at 4,095 meters. This majestic mountain, surrounded by the Kinabalu National Park, entices adventure seekers and nature enthusiasts from around the world. Scaling its summit requires physical endurance, but the reward is a remarkable sunrise view above the clouds and an opportunity to explore the park’s rich biodiversity, including unique plant species and diverse wildlife.
• Malacca City: Malacca City, also known as Melaka, is a historical gem that bears witness to Malaysia’s colonial past. Recognized as a UNESCO World Heritage Site, this vibrant city showcases a fusion of Portuguese, Dutch, and British architectural influences. Visitors can explore St. Paul’s Church, A Famosa Fort, and the vibrant Jonker Street, famous for its antique shops, night markets, and culinary delights. The city’s rich history and cultural significance make it a must-visit destination.
• Taman Negara: Taman Negara, meaning “National Park” in Malay, is one of the world’s oldest rainforests, dating back over 130 million years. Encompassing dense jungles, cascading waterfalls, and thrilling canopy walkways, this ecological wonderland offers visitors a chance to immerse themselves in the wonders of nature. Guided jungle treks, river cruises, and wildlife spotting expeditions provide a truly adventurous experience.

Malaysia, known for its vibrant multicultural society and captivating landscapes, has emerged as a prominent tourism destination in Southeast Asia. With a diverse range of tourism offerings, the country has successfully attracted visitors seeking various experiences. This study focuses on elucidating the most popular types of tourism in Malaysia and provides a nuanced understanding of their characteristics, significance, and impact.

• Cultural Tourism: Cultural tourism plays a vital role in Malaysia’s tourism industry due to the country’s rich cultural heritage and ethnic diversity. Visitors are enticed by the harmonious coexistence of Malay, Chinese, Indian, and indigenous cultures. Cultural attractions such as religious festivals, heritage sites, traditional arts and crafts, and culinary delights form the core of this tourism type. Popular cultural tourism destinations include George Town (Penang), Malacca City, and Kuala Lumpur.
• Nature and Ecotourism: Malaysia’s abundant natural resources, including rainforests, national parks, and pristine islands, make it an ideal destination for nature and ecotourism. Tourists are drawn to explore the country’s diverse ecosystems, engage in activities like jungle trekking, wildlife spotting, bird watching, and diving in marine reserves such as Sipadan Island and Tunku Abdul Rahman Marine Park. The promotion of sustainable practices and conservation efforts are integral to maintaining the allure of nature-based tourism in Malaysia.
• Adventure Tourism: Adventure tourism caters to thrill-seekers and adrenaline enthusiasts who seek unique and challenging experiences. Malaysia offers a plethora of adventure tourism opportunities, including white-water rafting, rock climbing, caving, canopy walks, and paragliding. Destinations such as Taman Negara, Gunung Kinabalu, and Langkawi Island attract adventure tourists with their awe-inspiring landscapes and adrenaline-pumping activities.
• Medical and Wellness Tourism: Malaysia has emerged as a prominent medical and wellness tourism destination, renowned for its quality healthcare services, modern facilities, and affordable treatments. International visitors often choose Malaysia for medical procedures, including cosmetic surgery, dental treatments, and wellness retreats. The country’s medical hubs such as Kuala Lumpur and Penang boast internationally accredited hospitals and wellness centers, catering to the growing demand for healthcare tourism.
• Gastronomic Tourism: Malaysia’s diverse culinary scene, influenced by Malay, Chinese, Indian, and indigenous cuisines, attracts food enthusiasts from all over the world. The country is renowned for its street food culture, offering a mouthwatering array of flavors and delicacies. Destinations such as Penang, Kuala Lumpur, and Ipoh are known as gastronomic hotspots, showcasing a rich tapestry of culinary traditions and local specialties.

Tourism plays a vital role in Malaysia’s economy, contributing significantly to its GDP and employment opportunities. However, it is crucial to evaluate the broader consequences of tourism in order to make informed decisions regarding sustainable development and resource management. This paper investigates the social, environmental, and economic impacts of tourism in Malaysia, presenting a comprehensive analysis of its positive and negative effects.

• Social Impacts of tourism in Malaysia: 

Positive Impacts: a. Cultural Exchange: Tourism facilitates cultural interactions, fostering a sense of understanding and tolerance among visitors and locals. 

b. Socio-cultural Revitalization: The preservation and promotion of traditional arts, crafts, and customs contribute to the conservation of cultural heritage. 

c. Job Creation: Tourism in Malaysia generates employment opportunities, particularly in the service sector, thus improving the livelihoods of local communities.

Negative Impacts: 

a. Socio-cultural Disruption: Rapid tourism development can lead to the commodification and commercialization of local cultures, potentially eroding traditional values and practices.

 b. Social Disparities: Income disparities between tourism-rich regions and less developed areas may increase, exacerbating social inequality. 

c. Sociocultural Conflicts: Cultural clashes between tourists and locals, often fueled by differences in behavior, customs, and expectations, can strain community cohesion.

• Environmental Impacts of tourism in Malaysia: 

Positive Impacts: 

a. Conservation Efforts: Revenue from tourism in Malaysia can be channeled into environmental preservation initiatives, contributing to the protection of natural resources, biodiversity, and ecosystems. 

b. Awareness and Education: Tourism in Malaysia provides opportunities to educate visitors about environmental conservation, fostering a sense of responsibility and encouraging sustainable practices.

a. Environmental Degradation: Overcrowding, unregulated development, and increased waste generation can place strain on fragile ecosystems and biodiversity.

 b. Natural Resource Depletion: Unsustainable tourism practices, such as excessive water consumption and deforestation for infrastructure development, can deplete valuable resources. 

c. Carbon Footprint: Tourism-related transportation and energy consumption contribute to greenhouse gas emissions, exacerbating climate change concerns.

• Economic Impacts of tourism in Malaysia: 

Positive Impacts:

 a. Foreign Exchange Earnings: Tourism in Malaysia generates foreign currency inflows, bolstering the country’s economic stability and reducing trade deficits. 

b. Economic Diversification: The tourism sector provides an alternative source of income and employment opportunities, reducing dependence on traditional industries.

 c. Small and Medium Enterprises (SME) Development: Tourism in Malaysia stimulates the growth of SMEs, including accommodation providers, tour operators, and local artisans, fostering entrepreneurship and regional economic development.

Negative Impacts:

 a. Leakage: Profits from tourism in Malaysia may leak out of the local economy due to foreign ownership, importation of goods and services, and repatriation of earnings by international companies. 

b. Seasonality and Dependency: Destinations heavily reliant on tourism in Malaysia can face challenges during low season periods, leading to economic instability and job insecurity for locals.

 c. Inflation and Cost of Living: Rapid tourism growth can drive up prices, particularly in popular tourist areas, potentially impacting the affordability of essential goods and services for local residents.

The impacts of tourism in Malaysia are multifaceted, encompassing social, environmental, and economic dimensions. While tourism has brought numerous benefits, such as cultural exchange, job creation, and economic diversification, it has also presented challenges, including cultural disruption, environmental degradation, and economic dependencies. To ensure sustainable tourism development, it is imperative to implement effective policies and strategies that maximize the positive impacts while mitigating the negative consequences, promoting responsible tourism practices, and prioritizing the well-being of local communities and the environment.

Now that we know a bit more about tourism in Malaysia, lets answer some of the most common questions on this topic:

Q: What are the must-visit tourist destinations for tourism in Malaysia?

A: Some of the must-visit tourist destinations in Malaysia include Kuala Lumpur, Penang, Langkawi, Malacca, Borneo (Sabah and Sarawak), Cameron Highlands, and the Perhentian Islands.

Q: What is the best time to visit Malaysia?

A: Malaysia has a tropical climate, so it is generally warm and humid throughout the year. The best time to visit depends on the region you plan to explore. The months from March to October are generally considered the best time to visit the West Coast (Peninsular Malaysia), while the East Coast (Perhentian Islands, Tioman Island) is best visited from April to October. Borneo (Sabah and Sarawak) can be visited year-round, but the dry season from March to October is recommended.

Q: Is it necessary to have a visa to visit Malaysia?

A: The visa requirements for Malaysia depend on your nationality. Many countries have visa-free entry for a certain period, while others may require a visa on arrival or a pre-approved visa. It’s advisable to check with the Malaysian embassy or consulate in your country for the most up-to-date visa information.

Q: What are the popular activities to do in Malaysia?

A: Malaysia offers a wide range of activities for tourists. Some popular activities include exploring the Petronas Towers in Kuala Lumpur, visiting heritage sites in Malacca, enjoying the pristine beaches of Langkawi, diving in Sipadan Island, wildlife spotting in Borneo, experiencing street food in Penang, and trekking in the Cameron Highlands.

Q: Is English widely spoken in Malaysia?

A: Yes, English is widely spoken in Malaysia, especially in urban areas and tourist destinations. Most Malaysians are bilingual and speak both English and Malay (Bahasa Malaysia). You should have no trouble communicating in English with locals.

Q: What is the currency used in Malaysia?

A: The currency used in Malaysia is the Malaysian Ringgit (MYR). It’s advisable to carry some cash, but credit cards are widely accepted in hotels, restaurants, and major establishments.

Q: Is it safe to travel to Malaysia?

A: Malaysia is generally a safe country for tourists. However, it’s always advisable to take normal precautions and be aware of your surroundings, especially in crowded areas or tourist spots. Take care of your belongings and avoid isolated or poorly lit areas at night.

Q: What is the local transportation like in Malaysia?

A: Malaysia has a well-developed transportation system. Major cities have public transportation networks, including buses, trains, and taxis. In Kuala Lumpur, the MRT and LRT (light rail transit) systems are efficient and convenient. Ride-hailing services like Grab are also popular in Malaysia.

Q: What is the cuisine like in Malaysia?

A: Malaysia is renowned for its diverse and delicious cuisine. You can enjoy a variety of dishes influenced by Malay, Chinese, and Indian cuisines. Some popular dishes include Nasi Lemak, Roti Canai, Laksa, Char Kway Teow, and Satay. Don’t miss the opportunity to explore the street food scene in places like Penang and Kuala Lumpur.

Q: Are there any cultural etiquettes to be aware of in Malaysia?

A: Malaysians are generally friendly and welcoming. It’s advisable to dress modestly, especially when visiting religious sites or rural areas. It’s also polite to remove your shoes before entering someone’s home or places of worship.

Malaysia, a confluence of diverse cultures, landscapes, and traditions, remains a significant cornerstone in Southeast Asian tourism. As the nation strides forward, the fusion of environmental stewardship with cultural integrity is paramount. By upholding these tenets, Malaysia reinforces its position as a captivating and sustainable destination on the global stage.

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Revitalising Tourism and Hospitality Under the National Tourism Policy 2020-2030

Globally, countries are still experiencing a decline in tourism expenditures. The United Nations World Tourism Organisation (UNWTO) World Tourism Barometer shows that the number of tourist arrivals recorded in 2020 was 399 million people compared to 1.47 billion people in 2019, a decrease of 74.0 per cent. 1

Domestic Tourism

Malaysia has not been exempted from this downward trend, as international borders remain partially closed. The Covid-19 pandemic resulted in a decrease of 83.4 per cent of inbound tourists in 2020. Tourist arrivals to Malaysia only came in at 4.3 million people compared to 26.1 million people in the previous year. 2

Nonetheless, Malaysia is among the countries with the highest percentage of fully vaccinated individuals in the world, with 98 per cent of the country’s adult population and over 78 per cent of the national population having completed their vaccination doses. This is expected to play a role in reviving the tourism industry as the willingness to travel increases. 3

Local tourism resumed shortly after the country ended its multiple lockdowns indicating that the demand for domestic travel will continue to grow and will recover relatively fast because of the growing in-country spending. Seasoned vacationers who are unable to travel abroad are diverting their money locally.

The disruption in demand caused overall internal tourism consumption in 2020 to plummet by 71.2 per cent compared to a growth of 6.8 per cent in the previous year. However, domestic tourism continues to play a significant role contributing 73.8 per cent to internal tourism consumption. 4

2022 a Turning Point for Inbound Tourism

According to the UNWTO Panel of Experts, 61 per cent of tourism professionals see better prospects  for 2022. While 58 per cent expect a rebound in 2022, (mostly during the third quarter), only 42 per cent foresee a potential rebound in 2023. Most experts (64 per cent) now expect international arrivals to return to pre-pandemic levels in 2024 or later, up from 45 per cent in an earlier survey. 6

As domestic travel is keeping the Malaysian travel sector afloat, the industry needs to reinvent itself while waiting for international tourism to resume. Therefore, it is timely for the government to introduce new policies to revive the industry.

National Tourism Policy 2020-2030

In response, the Government launched the National Tourism Policy (NTP) 2020-2030 on 23 December 2020 to ensure the continuity of the country’s tourism industry, while targeting to make Malaysia a global top 10 tourism destination in both arrivals and receipts.

Key approaches in achieving the NTP’s agenda are harnessing public-private sector partnerships and embracing digitalisation to drive innovation and competitiveness towards sustainable and inclusive development in line with the Twelfth Malaysia Plan (12MP), National Ecotourism Plan 2.0 and the 17 United Nations Sustainable Development Goals (UNSDGs).

The policy would be implemented through six (6) main strategic thrusts, including the transformation of governance, creating an inclusive tourism investment zone, and intensifying digitisation in the tourism sector.

In addition, the core thrusts involve enriching tourists’ experience and satisfaction, strengthening commitment to sustainable tourism and increasing human capital capacity in all tourism sub-sectors. 7

Special Tourism Investment Zone (STIZ)

To ensure that the strategic thrusts can be implemented objectively and effectively, six (6) sub-committees have been established. MIDA has been appointed to lead the Investment Sub-Committee.

One of the key objectives of the Jawatankuasa Kecil Pelaburan (JKP) is to develop Special Tourism Investment Zones (STIZ) through public-private partnerships and formulate strategies to attract local and international investors to STIZs which have been identified for the promotion of high-value tourism development. Currently, MIDA and the Ministry of Tourism, Arts and Culture Malaysia (MoTAC) are conducting roadshows to engage stakeholders and authorities throughout Malaysia in identifying potential STIZs.

Essentially, the STIZs aim to enhance Malaysia’s tourism ecosystem. Beyond offering accommodation facilities, other required facilities in STIZs include banking, commercial, logistics, hospitals, and retirement homes.

Public-private partnerships are crucial in transforming Malaysia’s tourism industry and the designation of STIZs will create a pro-investment environment while sending welcoming signals to international and homegrown investors.

The strategy of designating certain areas as special zones to induce private investments is not new and has been used by the Government before. This policy has been highly successful in increasing foreign direct investment, employment and industrial capacity in Malaysia’s manufacturing sector.

Likewise, STIZs will function similarly to existing special manufacturing zones, but focus specifically on the tourism sector. The introduction of STIZs aims to encourage high quality investment in Malaysia’s tourism sector, in line with the transformation strategies of the NTP.

Practising Sustainable and Responsible Tourism

Promoting Malaysia as the next ‘Top of the Mind Ecotourism Destination in the World’, NTP incorporates elements of the UNSDGs. 8   The UNSDGs are benchmarks for the sustainable growth of Malaysia’s tourism industry, tourism’s role in promoting inclusive development, and responsible consumption and practices. 9

In practising good governance, it is important to ensure a balance between development, protection and preservation of the country’s treasures including the environment, culture and heritage. 10  The involvement of the private sector in providing infrastructure and facilities without compromising Environmental, Social and Governance (ESG) concerns is important in developing STIZs.

In the long term, the tourism and hospitality sectors will need to look at structural changes that support the transition to low-carbon practices and sustainability. 11 Preparing for alignment with the UNSDG and ESG aspects will encourage hotel and tourism project operators to make more sustainable investments, particularly in clean or green technology.

Embracing Smart Tourism

The Government has pushed for the adoption of digitalisation and innovation among hospitality players to gain a better competitive edge. These include creating virtual experiences, providing flexible cancellation policies and rolling out campaigns that encourage advance trip planning or booking.

Under the NTP, MoTAC in close consultation with industry associations has formulated and implemented the Tourism Recovery Plan (TRP). Through the TRP, MoTAC aims to revitalise domestic tourism by offering more creative and attractive travel packages through digital platforms, as well as incentives and promotions in the form of rebate vouchers, e-vouchers, and cashback through e-wallets and discounts.

Another recovery strategy under the TRP is embracing technologies such as cashless payment, online booking, contactless transaction, and contactless check-in to deliver a secure, seamless and contactless travel experience for tourists in the post-pandemic era.

To support technology-related investments in this industry, MIDA encourages companies to tap onto the Automation Capital Allowance incentive which aims to promote the quick adoption of automation specifically for labour-intensive industries and to spur automation initiatives.

In achieving the objectives of NTP, MIDA welcomes quality investments that involve high value and innovative tourism products and services that align with Malaysia’s environmental policies and legal requirements. MIDA also encourages companies to invest in modern and higher standard infrastructure and facilities to build up the resilience and long term competitiveness of the tourism sector. This is in line with MIDA’s theme for this year, “Rebuilding a sustainable economy through quality investment and strategic investment supply chain development in 2022”.

For more information on the Automation Capital Allowance and other MIDA initiatives under NTP, contact MIDA’s Healthcare, Education and Hospitality Division.

1&2 https://www.dosm.gov.my/v1/index.php/index.php?r=column/cthemeByCat&cat=111&bul_id=SXp2ZUF0TGx2OTU0YXo2YXZ1QUMydz09&menu_id=TE5CRUZCblh4ZTZMODZIbmk2aWRRQT09

3 https://www.theedgemarkets.com/article/nrc-proposes-reopening-malaysias-borders-early-march-without-compulsory-quarantine

4 https://www.dosm.gov.my/v1/index.php/index.phpr=column/cthemeByCat&cat=111&bul_id=SXp2ZUF0TGx2OTU0YXo2YXZ1QUMydz09&menu_id=TE5CRUZCblh4ZTZMODZIbmk2aWRRQT09

6 https://www.unwto.org/news/tourism-grows-4-in-2021-but-remains-far-below-pre-pandemic-levels

7 National Tourism Policy 2020-2030, Executive Summary

8 https://www.tourism.gov.my/media/view/tourism-malaysia-promotes-ecotourism-at-expo-2020-dubai#:~:text=Promoting%20Malaysia%20as%20the%20next,of%20sustainable%20and%20responsible%20tourism

9 National Tourism Policy2020-2030, Executive Summary

10 https://www.thestar.com.my/news/nation/2020/12/23/pm-covid-19-caused-over-rm100bil-in-tourism-losses

11 https://www.mida.gov.my/wp-content/uploads/2021/03/MIDA-IPR-2020_FINAL_March4.pdf

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MALAYSIA’S NATIONAL TOURISM POLICY: FOCUS ON RECOVERY, CONNECTIONS, AND SUSTAINABILITY

In late December 2020, the Prime Minister of Malaysia launched Malaysia’s National Tourism Policy 2020-2030, giving concrete direction for the future of Malaysia’s tourism industry over the next ten years.

In his speech, the Prime Minister emphasised the importance of recovery, connections, and sustainability. In the challenging period that we are facing right now and the limitations imposed upon us by the pandemic, these are the core actions we must all embrace, regardless of whatever industry we are in.

These three core ideas are emphasised further through the National Tourism Policy’s six transformational strategies namely:

• Strengthen governance
• Create special tourism investment zones
• Embrace smart tourism
• Enhance demand sophistication
• Practise sustainable and responsible tourism
• Upskill human capital

At Islamic Tourism Centre (ITC), we fully align with these concepts as well, understanding that we need to continue our efforts to revitalise the tourism sector with the best possible preparation. Insha Allah, our efforts now are to prepare for a time later when the availability of effective vaccines and the opening of borders can boost travel again.

To move us forward, ITC has embraced the philosophy of “New thinking, new actions, new results.” With this shift in perspective, we are more focused on engaging with key influencers, deepening our relations with industry players, and strengthening our ITC brand locally and internationally.

Under the National Tourism Policy, Muslim-friendly tourism has been given a priority as well with the aim of cementing Malaysia’s position as the global leader in an alternative and ethical form of tourism beyond rituals. Towards this end, ITC has been tasked to consolidate Malaysia’s position as the world’s top destination for Muslim-friendly travel by increasing the depth of Islamic hospitality.

ITC aspires to fulfil these goals through five key actions:

• Creating smart partnerships with related agencies to establish Malaysia as the global centre for Muslim-friendly hotel certification
• Positioning ITC as the leading repository of market intelligence and reference centre for Muslim-friendly tourism and hospitality
• Branding Malaysia as the top venue for Islamic contemporary lifestyle through conferences, fashion shows, art and calligraphy exhibitions, and gastronomy festivals
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• Establishing smart partnerships between ITC and the Ministry of Health and the Malaysia Health Travel Council to turn Malaysia into a front-runner in Islamic healthcare and wellness.

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Malaysia’s tourism recovery flops as Thailand, Indonesia cash in

Malaysia is struggling to bring back tourists compared with its Southeast Asian peers after scrapping pandemic curbs.

Kuala Lumpur, Malaysia – For Arthur Wilkinson, a Penang-born entrepreneur who opened Malaysia’s first flotation therapy centre on his tropical island home, nearly two years without tourists marked the end of the road.

Float For Health, located in Tanjung Tokong, a coastal township on the northeastern side of Penang island, shut up shop for good in January 2021 as border restrictions introduced to keep out COVID-19 reduced customers to a trickle.

Keep reading

Australia’s battered tourism puts hope in china’s reopening, taiwan, once world’s factory, taps tourism to keep plants alive, thailand economy grows at fastest pace in year on tourism rebound, japan to reopen to mass tourism from october.

“Eighty percent of my customers were tourists, and at that time, anyone working in this industry suffered for obvious reasons,” Wilkinson, who also runs the restaurant Heap Seng at 29 in George Town, told Al Jazeera.

Malaysia reopened its borders to tourists in April, before dropping all vaccination and PCR-test requirements in August.

But nearly a year since hailing the return of international visitors, Malaysia’s tourism sector is not only struggling but playing catchup to its Southeast Asian peers.

Malaysia welcomed about 3 million visitors in 2022, up from 134,728 visitors the previous year, according to Tourism Malaysia. The intake was just about 12 percent of the number that arrived in 2019.

Thailand, Singapore and Indonesia — which welcomed 10 million, 4.6 million and 4.58 million visitors, respectively — saw arrivals return to about one-quarter of pre-pandemic levels.

Vietnam’s 3.6 million foreign visitors, although short of the government’s target, was about one-fifth of its intake in 2019.

Tourist industry figures have offered a range of explanations for Malaysia’s weak rebound from the pandemic compared with its neighbours, from poor cost competitiveness to the country’s reputation as a buttoned-up, predominantly Islamic society. Tourism Malaysia declined to comment.

Earlier this month, the Malaysian Islamic Party-backed state government in Kedah, home to the popular duty-free resort island Langkawi, caused jitters in the tourism sector when it floated a possible ban on alcohol sales.

Kedah Chief Minister Datuk Seri Muhammad Sanusi Md later clarified that the sale of alcohol in Langkawi is under the jurisdiction of the Finance Ministry, not the state government, and the state government had no authority to interfere with the tourist island’s duty-free status.

Malaysia already has some of the world’s highest alcohol taxes and imposes harsh punishments for drug offences, including the death penalty for trafficking.

Neighbouring Thailand, meanwhile, has built on its reputation for having a tolerant attitude towards vices, decriminalising cannabis in June 2022.

“From mid-December to mid-March, I used to have 80-90 percent of clients from Europe, and now I only have about 60 percent,” Anthony Wong, owner of Frangipani Langkawi Resort & Spa, one of the island’s oldest eco-resorts, told Al Jazeera.

“Flights to Malaysia from Europe are less [frequent] and more expensive, and Langkawi is not as cheap as its neighbours, especially the accommodation. … Europe is also going into recession, with inflation going up, and issues related to the ongoing war in Ukraine make it more challenging for them to spend money on travelling,” Wong said.

Wilkinson, who relocated his flotation therapy business to Indonesia’s Bali to take advantage of the higher tourist numbers and what he said was more dependable labour, said Malaysia could not afford to be complacent about its attractiveness to foreign visitors.

“We need to stimulate tourism somehow before it’s too late, as Malaysia is losing massively to Thailand and Indonesia,” he said.

“Even though Malaysia has a much wider variety of cuisines, our food and beverage scene and quality isn’t quite up to par compared to our neighbours, which also have lower alcohol tax and are more open to new ideas of tourism.”

Fabio Delisi, manager of Kuala Lumpur-based inbound tour operator Lotus Asia Tours, said he believes Malaysia’s potential has been held back by lacklustre promotion and relatively poor connectivity compared with other parts of the region.

“Malaysia does not lack attractions, especially natural ones. Tourism development suffers from inconsistent policies and promotional activities over the past decades,” Delisi, who has more than 30 years of experience in tourism across the region, told Al Jazeera. “Tourism is a very long-term public relation exercise.”

Delisi, whose company also operates in Indonesia and Singapore, said Malaysia’s fortunes have stood in stark contrast to those of Indonesia.

“We are wholesalers operating in Malaysia, Indonesia and Singapore since the early nineties, and in 2022 have experienced a decline of arrivals of up to 90 percent from our main Western markets into Malaysia, while we have seen double-digit growth in Indonesia for the same period,” he said.

In East Malaysia, which is separated from Peninsular Malaysia by the South China Sea, there are signs that tourism is rebounding much faster.

Operators there have benefitted from a niche market of high-spending Westerners seeking out tropical adventures in Malaysia’s eastern states on the island of Borneo, which is renowned for its wildlife and unspoiled nature.

“We hit the same revenue as 2019 last year despite it being an eight-month operation,” Jessica Yew, director of boutique tour company Sticky Rice Travel, which has its headquarters in Kota Kinabalu, the capital of Sabah state, told Al Jazeera.

“It’s mostly because of our market segment. [We cater to the] high-end/deluxe US market — the pandemic had little to no effect on their finances, and they were just waiting for the border to reopen. Europeans and British inquiries trickle in, but closing the sale for these is harder.”

For those with less to spend, travel and accommodation costs in Borneo, which are at their highest in years, could be off-putting.

“Most lodges and transport providers introduced a hike of up to 20 percent, while government agencies such as Sabah Parks doubled the price of some permits and entrances,” Yew said.

The higher prices include permits to climb Mount Kinabalu, Malaysia’s highest peak standing at 4,095 metres (13,435 feet), which this month doubled from 200 ringgit to 400 ringgit ($46 to $92).

When added to the costs of guides, food, and accommodation, the cheapest packages to tackle the summit come to about $550 per person.

While Sabah is generally cheap outside conservation areas, only some of the state’s protected parks are promoted by authorities as the main selling points for visitors.

“I tell people to go to Sumatra [in Indonesia] to see orangutans, as it costs one-third to one-fifth of Malaysian Borneo’s prices,” Yew said.

For many other operators, the return of Chinese and South Korean visitors, the biggest cohort of visitors to Sabah before the pandemic, will be crucial to their fortunes in the coming year.

Businesses, in particular, are keeping a close watch on China’s reopening of its borders last week after three years of international isolation.

Still, some within the sector are sceptical of any quick fix to the sector’s struggles.

“We are paying the price for more than twenty years of random policies without focus and continuity,” said Delisi of Lotus Asia Tours.

“Despite the effort of a number of good technocrats, without a framed, coordinated and consistent strategy, I don’t see how things may change or improve soon.”

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Total lockdown: 'Dying' tourism sector in Malaysia needs help to protect jobs

Monday, 31 May 2021

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As the country moved into total lockdown, popular tourist hotspots are bound to be deserted once more. — ART CHEN/The Star

In the wake of the total lockdown in the country, local tourism stakeholders have urged the government to provide support to keep businesses afloat and sustain the industry in the long run.

Massive losses The tourism industry and related economic activities in the country, according to Faeez, have suffered losses of over RM100bil in total since the start of the pandemic last year. "Tourist arrivals to Malaysia fell by 83.4% in 2020 with Malaysia’s tourist receipts also plunging by 85.3% from RM86.14bil in 2019 to RM12.69bil last year. Most of the tourists, or 4.23 million in 2020, arrived before the borders were shut on March 18," he said. Meanwhile, the Malaysian Association of Hotels (MAH) reported that the hospitality sector recorded a loss of over RM6.53bil for the year of 2020. Hotels in the country also suffer an estimated loss of RM300mil for every two weeks of the movement control order. Loss of revenue for the hotel industry this year to date, according to MAH, easily adds up to RM5bil, making it worse than last year. MAH chief executive officer Yap Lip Seng said the government needs to step in to help the industry mitigate some of these losses. The lives 3.6 million people employed in the industry, he said, is at stake due to the Covid-19 pandemic." Government must also do its best in ensuring businesses are supported throughout the period," he said. Help needed to survive Following the announcement of the total lockdown, stakeholders have put in a slew of requests to reduce the burden on the domestic travel industry. Matta, on its part, is requesting for the government to implement five initiatives to cushion the economic risks of the lockdown. These include automatic loan moratorium, wage subsidies extension until year end, cancellation of the Travel & Tour Enhancement Course (TTEC) and financial assistance for travel agents affected by the continuous movement control order and closure of state and international borders. The association also calls for a clear tourism recovery roadmap for the eventual revival of the industry. "Matta is calling for the government to come up with a tourism recovery roadmap together with the private sector as there is a desperate need for the travel industry to plan and strategise for the future of the travel industry. "This includes a clear framework and time frame when both domestic, as well as international borders, can reopen, one that clearly outlines the conditions under which our borders can begin to reopen," said Faeez. Some of the demands laid out by Matta was also reiterated by the hospitality sector, namely by MAH and Malaysia Budget & Business Hotel Association (MyBHA). MyBHA national deputy president Sri Ganesh Michiel said assistance from the federal and state governments as well public and private agencies is vital to assist the battered industry. "It will, to some extent, give more effective impact towards efforts to ensure the hotel and tourism industry survives without any employment layoffs or business closures," Ganesh said. MyBHA requested for a review of the water, electricity and Internet tariffs and incentives, among others. "We understand the economic problems and constraints faced by the government but the implementation of some actions (proposed by MyBHA) will be able to help the hotel and tourism industry to survive," Ganesh said. MAH's Yap said the current wage subsidy programme needs to be re-examined. "Enhancement to the wage subsidy programme is long overdue, and banks must play its part too by giving automatic full moratorium at zero interest to assist the government in ensuring the survival of businesses," he said. Yap also said businesses unable to cope with operating and payroll costs should be given leeway on statutory payments during the lockdown. Such a move, he said, will help employers "protect jobs of the people" during these challenging times.

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4 major takeaways for M’sia to learn from Macao in pushing itself as a tourist destination

T hink Malaysian tourism and the PETRONAS Twin Towers come to mind. They’re featured in almost every advertisement material to promote our country.

Sure, they’re a grand sight to behold, and our pride in them is justified. But Malaysia has so much more to offer, and its potential just isn’t being given enough attention to. 

So, how do we address this?

At the recent The Macao Showcase and MICE & Luxury Forum in Singapore, we got to see for ourselves and hear from a panel of experts on how to successfully showcase a location as a tourist destination.

Both events were hosted by Sands China Ltd , which owns and operates multi-use integrated resorts in Macao, and held at Marina Bay Sands , its sister property in Singapore.

Why look to Macao as an example?

Macao has always had a strong tourism sector, with annual arrivals above 30 million for consecutive six years before reaching its peak of 39,340,181 visitors in 2019 .

Following the reopening of its tourism sector for international visitors, Macao has also seen a strong recovery performance. 

It began welcoming over a million visitors monthly in 2023, and in April 2023, tourist arrivals broke the 2 million mark , bringing its current total in Q1 of the year to 4.96 million visitors. If it simply maintains this rate, Macao will easily hit close to 20 million visitors by end 2023. 

(For contrast, Malaysia has targeted a more modest 16 million visitors in 2023 , and is banking on a “late surge” in tourist arrivals to bring our numbers up.)

There could be many factors as to why Malaysia is seeing a slower pickup rate of visitors. But after visiting Macao’s showcase and forum, it’s clear that Malaysia has a few things to learn from the region when it comes to showcasing our tourism appeal.

1. SMEs’ role in tourism is currently overlooked, both the government and private companies should step in to fix that.

Something that was palpable at the showcase was Macao’s pride in its SMEs, and the lengths that Sands China Ltd went to, to make sure that they were spotlighted as part of Macao’s tourism.

This included highlighting a 90-year-old bakery that’s famous for its almond cookies (Yeng Kee Bakery), Macao’s first gin distillery born during the pandemic (Owl Man), and a fashion brand that has made it into British Vogue, Vogue Italia, and the London Fashion Week (Nuno Lopes).

These aren’t the types of SMEs we’d typically think of when we’re asked which local brands make us proud, and that everyone else should know about. 

Instead, a lot of our focus is on tech-slanted SMEs, who are more likely to receive support from government-owned programmes to commercialise successfully in domestic and international markets.

But do these SMEs play a role in highlighting Malaysia’s heritage and rich culture specifically? 

To that end, Malaysia needs to identify its own SMEs that have tourism appeal, and the government along with private companies must recognise their value and lend support to uplift them.

We need to move beyond specific attractions like KLCC, our islands, or caves, and encourage international visitors to come and explore our foodscape, our heritage-rich fashion scene, and more.

Let’s give these SMEs a global platform to attract foreign customers too, because it’s time to move past local supporting local, and head towards global supporting local if we want to grow both our SMEs and our tourism sector.

2. Tourism isn’t just about one hotel or one location, but the cohesive and comprehensive experience that visitors get from a community.

During the MICE & Luxury Forum, we learnt that one hotel or one location alone cannot carry a country’s tourism sector.

For a tourist visit worth remembering, a country or community should offer a cohesive and comprehensive experience.

Cohesive meaning that all the tourist attractions (whether a natural attraction, a food spot, or an SME’s offerings) play off each other well. 

They all must have a purpose to be highlighted, and how do their individual purposes contribute to the bigger picture? How can they come together to create a comprehensive experience for visitors?

An example of a comprehensive experience could start in a hotel, where it serves or uses products from local SMEs, organises tours to specific local attractions, and has a shopping complex in its vicinity. 

All this will make the hotel more than just a place to rest and rejuvenate, and tourists don’t need to feel like the burden of finding things to do is on their shoulders, because they already have these “packaged” experiences in one place.

3. The destination’s story matters and a wholesome narrative is important to put us on tourists’ radar.

Following the above, when more attention is paid to curating cohesive and comprehensive experiences for visitors beyond a single location or activity, it’s easier to shape a narrative around a destination.

Although Macao is a destination that many see as being for either business or entertainment, its best-known narrative is still that it’s a place with a rich colonial heritage, proven by its 22 sites on the UNESCO World Heritage List.

Modern structures like luxury hotels and conference centres and shopping complexes can be replicated anywhere with the right resources—but a destination’s culture is one it calls its own, and that is what should be the backbone of its story.

So, what is Malaysia’s story, and how can different stakeholders, from the government to SMEs, contribute to and complement it?

4. MICE events that encourage open communication and discourse with major and minor stakeholders in tourism and other sectors will up the destination’s global appeal.

From The Macao Showcase to the MICE & Luxury Forum, all of our senses were well engaged. 

We enjoyed the sights of detailed sets replicating Macao, smelled and tasted F&B unique to the region, got to touch various fashion products on display, and had the pleasure of listening to panels of experts in their fields.

Combined, these experiences really cemented the appeal of Macao as a must-visit tourist destination in our minds. 

It speaks to the importance of having well-organised MICE (Meetings, Incentives, Conferences & Exhibitions) events catered to an international crowd if we want to up Malaysia’s tourism appeal.

Alongside the sights, we should have substance in our events and provide the involved stakeholders with a platform to have open communication and impactful discourse. 

These stakeholders shouldn’t only be from the tourism industry either, but should also come from the fashion, arts, and culture sector, and of course, be made up of SMEs too.

Data is king in effective tourism

All of the above points only have credibility because Macao has proven that it knows its numbers, and it knows how to grow those numbers.

That’s why it’s important for stakeholders in a country’s tourism sector to have the right data.

We need to know what people are coming to our country for, how long they’re staying for, what they’re spending on, how many are returning in the following or subsequent years, and other data points. Only then can we plan the right kinds of tourism MICE events.

It’s time for Malaysia to stop hiding in KLCC’s shadow and only depending on the government to push Malaysia as a tourist destination. 

Everyone needs to come together to offer up the best version of Malaysia as a go-to destination, be it for business or leisure, and we can take a page out of Macao’s book for starters.

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• Read other articles we’ve written about tourism here .

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• Basic Statistic Value of international tourism spending APAC 2022, by country
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Niche tourism sector gains healthy advantage in Shanghai

Hospital pilot program looks at ways to improve services for foreigners.

Sharing knowledge

Recalling the 2014 operation, Xia said it was a coincidence that the girl, Damia from Malaysia, was sent to Renji Hospital for her liver transplant. Her parents had friends who did business in Jiangsu province, which neighbors Shanghai, and doctors there recommended Renji Hospital for pediatric liver surgery. In the past, Malaysian families with a child in a similar situation would have sought medical treatment in Europe, the United States or Japan.

"The transplant surgery on the girl was quite successful. She recovered quickly and the cost was only one-fifth — including travel expenses — compared with that in a developed country," said Xia. Renji Hospital continued to handle cases from Malaysia as word spread throughout the patient community.

A team of liver transplant experts led by Xia later flew to Kuala Lumpur to meet their peers at the University of Malaya Medical Centre, where most of the children were taken for post-surgery checkups. The trip also gave the Chinese doctors the opportunity to visit the children.

"From their expressions, we could see how puzzled our Malaysian counterparts were when we first introduced our transplant techniques. They were all trained in medicine in the West and the ingenuity of Chinese doctors was incredible to them," said Xia.

A short time after returning to Shanghai, Xia organized a small academic symposium and invited a dozen experts from Southeast Asian nations to participate. They were also invited to tour the wards at Renji Hospital, and all of them expressed amazement at what they saw, Xia said.

In 2019, a group of 16 doctors and nurses from the University of Malaya Medical Centre completed training in pediatric liver transplants at Renji Hospital, which prepared them for running a similar program at the Malaysian hospital the same year.

"Many of my colleagues, including me, have a medical license to perform surgeries in Malaysia," Xia said. "Also, we still have children from Malaysia who come to our hospital in Shanghai for transplants every year."

Xia said this year he had also treated a French patient and another one from the Netherlands. "The country of origin of the patients is becoming increasingly widespread," he said.

Liver transplant surgeons from prestigious medical institutions and renowned pediatric liver transplant centers in countries such as the United Kingdom, Japan, South Korea, and Russia have received training at Renji Hospital, Xia said.

"This year we'll open our doors wider and welcome doctors from all over the world. We believe this will boost mutual exchanges and promote common improvement," he said, adding that the world's largest annual conference on living donor liver transplantations will be held in Shanghai in 2025.

Renji Hospital also has advantages in other disciplines, such as rheumatology, gastroenterology, and assisted reproduction, which can help it expand its influence and help more patients from home and abroad, Xia said.

While building strength in these areas, doctors need to take part in more high-level international exchanges and make their voices heard in the global arena, he said.

"Medical care is an ideal way to use China's soft power and spread Chinese culture. We reach out to alleviate people's diseases and pain and always receive a welcome. The Malaysian ambassador to China has come to our hospital multiple times to express gratitude and show support for bilateral cooperation," said Xia.

Reputation spreads

In January, the Shanghai Children's Medical Center received an e-mail from the parents of a 2-year-old boy from Poland who were seeking medical treatment for their son.

The parents wrote that the child, Buko, had been diagnosed with severe immunodeficiency caused by a genetic mutation. While receiving treatment in Europe, doctors discovered that he had a liver tumor.

Buko's parents learned about the Shanghai hospital on PubMed, a database of biomedical papers. They discovered that Shanghai Children's Medical Center ranked first in the world for treatment of hepatoblastoma, a rare childhood liver cancer, and had a series of papers published in top medical journals about the disease.

Buko was admitted to the Shanghai hospital in early February and underwent surgery within two weeks. The toddler has been discharged and returned to Europe for follow-up chemotherapy.

The boy was the first international patient the hospital had received after joining the pilot program for international medical tourism.

In addition to strong pediatric services, Shanghai also has great capacity in traditional Chinese medicine.

Construction to upgrade the international division at Longhua Hospital Affiliated with the Shanghai University of Traditional Chinese Medicine is underway. Chen Yuelai, president of the hospital and an acupuncture expert, said a group of loyal expats seeks regular TCM treatment from him.

In recent years, traditional Chinese cultural aspects such as tai chi, kung fu and acupuncture have grown in popularity internationally, and "this atmosphere has provided an unprecedented opportunity for TCM to go global," Chen said.

From time to time Longhua Hospital receives Western patients who have traveled to seek medical assistance for problems such as old sports injuries, he said.

A growing number of Japanese and Koreans who live in Shanghai have also come for TCM to treat chronic diseases and have therapies prescribed, Chen added.

Improvements ahead

The global medical tourism industry grew at an annual rate of 20 percent for 10 years before the COVID-19 pandemic hit, data from the Hainan provincial government, where the Boao Lecheng International Medical Tourism Pilot Zone is located, showed.

The data also indicated that less than a decade ago, local medical services had been unable to meet people's rising health needs, experts said.

More than 600,000 Chinese went abroad for medical tourism in 2016. About 40 percent were advanced tumor patients, 25 percent traveled for physical examinations, and 12 percent for plastic surgery, according to the data.

In 2017 alone, more than 50,000 individuals from the Chinese mainland traveled to the Hong Kong Special Administrative Region to receive human papillomavirus vaccine inoculations before they became widely available locally.

Shanghai first proposed developing medical tourism in 2019. A year later, a group of private medical institutions were selected for a pilot international medical tourism program. The city also pressed ahead with improving health insurance and medical payments to meet international standards.

Several medical experts said that the global medical tourism market is already largely established.

For example, the US has advantages in the treatment of severe diseases and cancer, while Japan has built a good reputation in cell therapy and regenerative medicine. Some Southeast Asian countries have attracted international patients with high-quality medical services and comparatively moderate prices. South Korea has created a name for itself in plastic surgery.

Improving medical workers' English-proficiency is an important factor in expanding Shanghai's medical tourism, one expert said.

Jin Chunlin, director of the Shanghai Institute of Medical Science and Technology Information, said that some countries, like India and Thailand, already have two clear advantages.

"Medical workers in those two countries are generally fluent in English, and the two countries have fairly mature and competitive tourism products. Also, they have strong features in medical tourism. For example, they are famous for their herbal remedies," Jin said.

Service levels could be improved by providing more doctor's appointments and polishing medical workers' etiquette.

Taking the lead from countries such as South Korea, other industry experts suggested China launch a preferential visa policy for those seeking medical treatment.

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