| The growth and future health of local tourism is of critical importance to Malaysia’s economy. Tourism contributes more than 14.9 percent to Malaysia’s economy - higher than the global average of 10 percent - and employs more than one in five workers.
While real progress has been made, recent tourism figures reinforce there is more to be done. In 2018, the number of international tourist arrivals into Malaysia fell from 25.9 million in 2017 to 25.8 million - short of the target of 26.4 million. A bright spot for Malaysian tourism has been the continued growth of short-term rentals with more travellers, including Malaysians, choosing to stay in them.
First, it runs contrary to the goal of growing tourism, and the commission's work on reducing unnecessary red tape and enhancing competitiveness and innovation. Restrictive caps would mean less choice of where to stay for travellers. Less choice means fewer travellers and growth. It would also put Malaysia at a significant disadvantage relative to other countries which are supporting short-term rentals.Second, caps don’t suit Malaysia’s unique needs.
The fact is the association’s plan does not support tourism growth but instead protects the interests and profits of their members.
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