Penang wants more than tourist numbers as it shifts to high-value tourism

GEORGE TOWN, Sept 22 — Penang is seeking federal government assistance in its 2027 budget to enhance its tourism agenda, emphasizing the need to improve air connectivity, attract more international events, and preserve the city's heritage. Wong Hon Wai, chairman of the State Tourism and Creative Economy Committee, highlighted that the priorities are designed to elevate the sector's value while guaranteeing continued economic and community growth.

A key focus area is the establishment of an international air connectivity fund, including matching grants, to attract direct flights from key markets like Japan, South Korea, Australia, and the Middle East. The Penang International Airport (LTAPP) is undergoing an expansion project that will double its capacity to 12 million passengers per year, slated to be completed in June 2028.

Wong emphasized the importance of fully utilizing this expanded capacity through new routes and increased flight frequencies.

In addition, Penang is advocating for a larger federal matching fund to participate in and attract international conferences, exhibitions, sports events, festivals, concerts, and major arts and cultural events. Wong pointed out that business events last year contributed approximately RM1.91 billion to the economy, highlighting Penang's potential to become a significant regional hub for business and events with its new facilities and boosted capacity.

The proposed fund could also support the creation of creative content, productions, local festivals, and intellectual property that could compete on the global stage.

Wong also suggested the creation of a UNESCO George Town Conservation and Regeneration Fund to ensure the heritage city maintains its living heritage status. He stressed that the fund would allocate resources for the preservation of heritage buildings, enhancement of public spaces, safety, accessibility, and the protection of traditional businesses, artisans, and communities that contribute to George Town's unique character.

Wong stressed that conservation efforts should not solely focus on preserving buildings but should ensure the heritage, culture, and local communities thrive while generating new economic opportunities through tourism and the creative economy.

Furthermore, Wong called for the continuation of the 100 per cent tourism tax allocation to states in 2027, following the current practice. He expressed hope that this measure would be sustained as the Visit Malaysia Year is extended to 2027. The 2027 budget is anticipated to be presented by the Prime Minister, Finance Minister Datuk Seri Anwar Ibrahim, on October 9.