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

George Town, Penang, is seeking federal government support through Budget 2027 to elevate its tourism agenda. State Tourism and Creative Economy Committee chairman Wong Hon Wai outlined priorities aimed at enhancing the sector's value while ensuring continued economic benefit for the local community. A key focus is boosting air connectivity through a dedicated international air connectivity fund, including matching grants to attract direct flights from strategic markets like Japan, South Korea, Australia, and the Middle East.

The Penang International Airport is expected to double its passenger capacity to 12 million annually by June 2028, necessitating new routes and increased flight frequencies to fully utilize this capacity. Wong also called for a larger federal matching fund to bid for and host international conferences, exhibitions, sporting events, festivals, concerts, and large-scale arts and cultural events.

Demonstrating Penang's potential as a major regional hub, business events last year generated an economic impact of approximately RM1.91 billion. The fund could also support creative content development, productions, local festivals, and intellectual property for international stages. Wong proposed establishing a Unesco George Town Conservation and Regeneration Fund to ensure the heritage city thrives as a living heritage city, with dedicated allocations for heritage building conservation, public space enhancement, safety, accessibility, and preservation of traditional businesses, artisans, and communities.

He emphasized that the focus should shift from merely pursuing tourist numbers to high-value tourism post-Visit Malaysia 2026. Wong also advocated for the continuation of the 100 per cent tourism tax allocation to states in 2027. Budget 2027 is expected to be presented by Prime Minister Anwar Ibrahim on October 9.