Penang Adopts High-Value Cruise Tourism Approach To Maximise Economic Spillover

By R.Ratcharathan

GEORGE TOWN, Jan 3 (Bernama) -- Penang is focusing on a high-value cruise tourism approach that emphasises quality spending and onshore engagement, in line with the expansion of the International and Charter Flight Matching Grant (GSPC) to the cruise sector to maximise economic spillover to the state.

State Tourism and Creative Economy Committee chairman Wong Hon Wai said through strategic collaboration with cruise operators, tour packages featuring heritage cities, cultural products, gastronomy and local businesses will be strengthened to ensure that economic benefits are channelled directly to the people.

“The state’s focus is not merely on the number of arrivals, but on shore excursion participation rates, the duration of time spent on land and the level of spending.

“Cruise tourists typically disembark for only a few hours and do not stay overnight in hotels in Penang. As such, the state government has redeveloped the Astaka Kota Selera at Fort Cornwallis and upgraded the Fort Cornwallis moat to enhance cruise visitor experiences,” he told Bernama when contacted.

Wong said the state government is also encouraging tour operators and cruise liners to utilise local services such as licensed tour guides, local transport providers, food operators, small traders and community products to ensure the cruise tourism value chain delivers tangible returns to the people, particularly small and medium enterprises.

Wong said the state government will work closely with Tourism Malaysia, the Penang Port Commission and the Swettenham Pier Cruise Terminal (SPCT) to promote GSPC incentives to cruise operators, international operators and agents.

The efforts include engagement sessions, facilitation of application processes and the promotion of Penang as a key port of call in the region.

He also gave assurance that SPCT, together with existing supporting infrastructure, has the capacity to accommodate an increase in cruise tourist arrivals.

“The state government, in collaboration with port authorities and relevant agencies, is continuously implementing improvements in operational efficiency, passenger flow and transport connectivity to ensure a smooth and comfortable experience for visitors,” he said. 

On Visit Malaysia 2026 (VM2026), Wong said Penang is targeting economic contributions from the cruise tourism segment through onshore spending covering food, tours, transportation, shopping and tourism products.

However, he stressed that no specific spending targets have been set at this stage, with the focus instead on attracting large-scale cruise vessels and middle-to high-income passengers.

Meanwhile, Wong said the state government remains committed to ensuring that the promotion of Penang’s gastronomy remains authentic by prioritising local traders, heritage food and traditional recipes.

“Emphasis is placed on Penang’s genuine food identity so that cruise tourists can enjoy a gastronomic experience that truly reflects the state’s culture and uniqueness,” he said.

On Wednesday, Tourism Malaysia announced that the scope of the GSPC would be expanded to include the cruise sector starting this year as a strategic move to attract more international tourist arrivals via sea routes.

Before this, the matching grant focused solely on domestic and international airlines to encourage the expansion of new and charter flight routes to Malaysia.

However, the significant potential of the cruise industry has prompted the government to extend the incentive.

-- BERNAMA