Kuala lumpur: 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).
According to BERNAMA News Agency, MTF President Dr. Sri Ganesh Michiel stated that the tax rebate, announced in Budget 2026, on entry fees to local tourist attractions and cultural programs reflects the government's commitment to promoting domestic travel and strengthening national tourism. Dr. Michiel noted that these incentives will encourage continuous improvements in service quality and visitor experience, ensuring Malaysia remains competitive and appealing to travelers.
Earlier, Prime Minister Datuk Seri Anwar Ibrahim, when tabling Budget 2026 in the Dewan Rakyat, announced that over RM700 million will be allocated to boost tourism promotion and activities, including the Visit Malaysia 2026 (VM2026) campaign, which targets 47 million visitors and RM329 billion in tourism revenue. Dr. Michiel emphasized that this fiscal commitment signals Malaysia's seriousness about reclaiming its position as a top global tourism destination.
Dr. Michiel also highlighted the importance of utilizing the substantial investment effectively, benefiting only licensed and registered operators who uphold service quality and safety standards while contributing fairly through taxes. He said that these measures will stimulate local tourism and enhance Malaysia's global competitiveness.
The MTF, representing over 20,000 tourism businesses and stakeholders across Malaysia, also praised the government's initiative to grant tax deductions of up to RM500,000 for qualified tourism operators who renovate or upgrade their business premises. Dr. Michiel believes that 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 travelers.
The federation 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. Dr. Michiel stressed that the success of Visit Malaysia 2026 depends on collective national effort.
Meanwhile, Malaysia Budget and Business Hotel Association (MYBHA) President Dr. Sri Ganesh Michiel described the initiative as timely and a boost for domestic tourism spending while supporting local operators nationwide. He urged stronger enforcement action against illegal and unregulated accommodation providers, which he claims distort fair competition and undermine profitability for legitimate, licensed hotels and resorts.
From an economic perspective, MYBHA emphasizes that the government's investments in tourism development must be recouped through proper tax collection, which is currently shouldered mainly by licensed establishments. Dr. Michiel pointed out that illegal accommodation providers often evade Tourism Tax and other relevant obligations, resulting in significant revenue leakage to the government. He also supported the tax incentive for tourism project operators who undertake renovations and upgrades on their premises, noting that it would enhance the quality, safety, and appeal of hotels and resorts for visitors.