Reviewing Entry of Travelers from 6 Countries... Malaysia's Tourism Stretches Out

Discussion on Gradual Reopening with Korea and Singapore... Easing the Strangled Hotel Industry Hit Hard

[Asia Economy Kuala Lumpur Hong Seong-a, Guest Reporter] The Malaysian government is considering a plan to gradually reopen its borders, starting with Singapore and Brunei, countries that have successfully contained the spread of the novel coronavirus infection (COVID-19). While some express concerns that the influx of tourists could lead to a resurgence of COVID-19 cases, the Malaysian tourism industry, which is on the brink of collapse, welcomes this as a positive development.

According to local media on the 7th, the Malaysian Ministry of Health stated that it is reviewing whether to allow travelers from six countries, including South Korea, Singapore, Brunei, Australia, New Zealand, and Japan, to enter the country. The Ministry added that the selection of countries under review was based on factors such as the number of new COVID-19 cases and infection trends by country.

Malaysia closed its borders on March 18 in response to the spread of COVID-19. However, as the economic downturn prolonged, demands for reopening the borders increased. The hotel industry, in particular, has suffered severe damage. The Malaysian Association of Hotels (MAH) estimated that the average hotel room occupancy rate in the country would sharply drop from 65% last year to 25% this year. Since the beginning of this year, due to movement restrictions and other factors, the hotel industry is estimated to have suffered financial losses of approximately 6.306 billion ringgit (about 1.76 trillion KRW).

The recent decline in new daily COVID-19 cases to around 10 is also cited as a factor prompting consideration of border reopening. Malaysia plans to gradually open its borders for business, education, and tourism sectors once the border reopening guidelines are finalized.

The authorities are prioritizing the reopening of borders with Singapore and Brunei. Singapore is the country that visits Malaysia the most, and Brunei is the largest customer of East Malaysia, including Sarawak and Sabah. More than half of all tourists who visited Sarawak last year were from Brunei.

To aid the recovery of the tourism industry, the Malaysian government allocated a special fund of 1 billion ringgit (about 279.7 billion KRW) as part of the 'Short-Term Economic Recovery Policy' early last month. To attract foreign tourists, a measure was introduced to exempt the tourism tax of 10 ringgit (about 2,800 KRW) per night from this month until June 30 next year, for one year. The tourism industry expects that this tax exemption will effectively help attract tourists.