2026 Budget: Hoteliers confident of VM2026 success with RM500m boost

KUALA LUMPUR: Hoteliers are confident that Visit Malaysia Year 2026 (VM2026) will be a great success, following the government's allocation of RM500 million for the campaign under the 2026 Budget. 

Malaysian Association of Hotels (MAH) president Datin Christina Toh said today the funding, part of an overall RM700 million envelope for the tourism industry, marks a significant increase from last year and underscores the government's focus on the sector. 

"The hotel industry faced strong headwinds in 2025, with global economic uncertainty and unpredictable travel trends impacting performance. 

"Data for the first eight months of 2025 showed a 3.3 per cent drop in occupancy and a 2.9 per cent decline in average room rates compared with the same period in 2024."  

Toh said the tax incentives will strengthen the industry's recovery. 

"These include a 100 per cent tax exemption for tour operators on inbound tourism, and tax deductions of up to RM500,000 for the renovation and refurbishment of tourism premises.

"There will also be full exemptions for international incentive trips, conferences and exhibitions verified by the Tourism, Arts and Culture Ministry. 

"The RM1,000 personal tax relief for domestic tourism is also timely, especially with the roll-out of state and national VM2026 campaigns." 

She said MAH would continue collaborating with Tourism Malaysia on domestic travel promotions under the Cuti-Cuti Malaysia campaign, with fairs scheduled in Kuala Lumpur, Johor Baru, Penang and Pahang next year to offer hotel packages and encourage domestic travel. 

On workforce development, Toh highlighted the importance of upskilling to meet industry demands. 

"Hotels are looking forward to dedicated funding for digital and AI-related training under the RM3 billion allocation under the Human Resource Development Corporation." 

She said, however, that the allocations must be managed carefully and disbursed in a timely manner. 

"With renewed investment and focus, we are confident the sector is in recovery mode and well positioned to help Malaysia welcome 47 million visitors and generate RM329 billion in tourism receipts in conjunction with VM2026."

 -nst online.