Budget 2026: MTF Applauds Tourism Allocation For Visit Malaysia 2026, Urges Nationwide Support

KUALA LUMPUR, Oct 10 (Bernama) -- The Malaysian Tourism Federation (MTF) has welcomed the introduction of tax rebates of up to RM1,000 for Malaysians visiting local attractions, alongside income tax exemptions and renovation incentives for tourism operators, aimed at stimulating the tourism industry ahead of Visit Malaysia 2026 (VM2026).

Its president Dr Sri Ganesh Michiel said the tax rebate, announced in Budget 2026, on entry fees to local tourist attractions and cultural programmes reflects the government’s strong commitment to promoting domestic travel and strengthening national tourism.

“These incentives will encourage continuous improvements in service quality and visitor experience, ensuring Malaysia remains competitive and appealing to travellers,” he said in a statement, today.

Earlier, Prime Minister Datuk Seri Anwar Ibrahim, when tabling Budget 2026 in the Dewan Rakyat today, said that over RM700 million will be allocated to boost tourism promotion and activities, including Visit Malaysia 2026 (VM2026) campaign, which targets 47 million visitors and RM329 billion in tourism revenue.

Sri Ganesh said this strong fiscal commitment sends a clear message that Malaysia is serious about reclaiming its position as a top global tourism destination.

“With such a substantial investment, it is vital that every ringgit is utilised effectively, benefiting only licensed and registered operators who uphold service quality and safety standards, while contributing fairly through taxes. These measures will certainly stimulate local tourism and enhance Malaysia’s global competitiveness,” he said.

He said that MTF also welcomes the announcement that tour operators will be granted a 100 per cent income tax exemption on the increased value of income derived from tour packages to Malaysia, along with tax incentives for companies, organisations or associations which organise international-level conferences, exhibitions and incentive events in the country.

MTF, which represents over 20,000 tourism businesses and stakeholders across Malaysia, also lauded the government’s initiative to grant tax deductions of up to RM500,000 for qualified tourism operators who renovate or upgrade their business premises.

“This incentive will encourage continuous improvement in service quality, facilities, and overall visitor experience, ensuring Malaysia’s tourism infrastructure remains competitive and attractive to both domestic and international travellers,” he said. 

MTF also commended the Ministry of Tourism, Arts and Culture (MOTAC) for its leadership in preparing for VM2026, and called on all Malaysians to act as national ambassadors by fostering a positive, safe, and welcoming environment for tourists.

“The success of Visit Malaysia 2026 depends on all of us. Let us unite in spirit, avoid negative publicity or actions which may harm the country’s image, and show the world the warmth, diversity, and unity that define Malaysia,” he said.

Meanwhile, Malaysia Budget & Business Hotel Association (MYBHA) president Dr Sri Ganesh Michiel described the initiative as a timely and excellent move to stimulate spending on domestic tourism while supporting local operators nationwide.

He also called for stronger enforcement action against illegal and unregulated accommodation providers, stressing that their operations continue to distort fair competition and undermine the profitability of legitimate, licensed hotels and resorts.

"From an economic perspective, MYBHA emphasises that the government’s investments in tourism development must be effectively recouped through proper tax collection, which is currently being shouldered mainly by licensed establishments.

"Illegal accommodation providers often evade Tourism Tax and other relevant obligations, resulting in significant revenue leakage to the government,” he said in a statement today.

He said the association also welcomed the tax incentive for tourism project operators who undertake renovations and upgrades on their premises, allowing tax deductions of up to RM500,000, noting that the move would help enhance the quality, safety and appeal of hotels and resorts for both domestic and international visitors.

-- BERNAMA