KUCHING: Malaysia’s tourism industry is grappling with a significant preference for outbound travel, as neighbouring countries like Thailand and Indonesia continue to attract local travellers with affordable luxury, diverse activities, and cultural experiences.
A 2023 Tourism Malaysia report revealed that 35 per cent of Malaysians opted for international overnight trips, with Thailand leading the market at 30.2 per cent, followed by Indonesia (15.3 per cent), Singapore, and Japan.
According to the Executive Dean of the Faculty of Social Sciences and Leisure Management at Taylor’s University, Malaysia, and the President of the ASEAN Tourism Research Association (ATRA), Prof Dr Neethiahnanthan Ari Ragavan, these countries appeal to Malaysians with their affordability, accessibility, and unique experiences.
“For example, Thailand offers affordable luxury ranging from beaches to cityscapes, while Bali in Indonesia is renowned for its blend of wellness, culture, and adventure tourism,” he said.
Price sensitivity remains a significant factor influencing outbound travel, with budget considerations impacting 28.3 per cent of decisions, while destination appeal (41.9 per cent) and the variety of experiences (24.9 per cent) also play critical roles.
Neethiahnanthan lamented that the trend shows no signs of slowing, with 69 per cent of Malaysians planning to travel abroad in 2024.
“This trend challenges Malaysia’s domestic tourism, which struggles to match the perceived value offered by regional destinations.
“Social media and peer recommendations also play a significant role, with 60.2 per cent of travellers relying on personal and social networks for travel planning.
“Additionally, 27.9 per cent use online travel agencies, highlighting the importance of digital platforms in influencing travel decisions,” he added.
Despite this, domestic tourism still holds potential, with 66 per cent of Malaysians having planned local holidays in 2023, favouring destinations like Langkawi, Penang, Pahang, and Sabah.
These areas are known for their natural beauty, cultural heritage, and quality accommodations.
Beaches, mountains, and parks emerged as the most enjoyed attractions, followed by local cuisine and accommodation quality.
However, barriers such as cost, limited accessibility to rural destinations, and insufficient diversification in offerings hinder the growth of domestic tourism.
Local travel is often perceived as expensive compared to neighbouring countries, while underdeveloped infrastructure in lesser-known areas further deters visitors.
Market segmentation also poses challenges, with current offerings failing to meet the needs of diverse traveller demographics.
Millennials seek adventure and cultural immersion, families prioritize convenience, and eco-conscious tourists are drawn to sustainable options.
Efforts like Sarawak’s Borneo Highland Glamping Festival demonstrate the potential of innovative tourism products to attract both local and international visitors.
Meanwhile, campaigns like ‘Cuti-Cuti Malaysia’ have raised awareness, with 74 per cent of Malaysians familiar with the initiative.
However, calls for a revamp suggest the need for gamified rewards, interactive content, and sustainability-focused messaging to resonate better with modern travellers.
To revitalize domestic tourism, Neethiahnanthan suggested addressing cost barriers by introducing affordable travel packages, bundled deals, and tax incentives for local travel.
He also highlighted the importance of infrastructure upgrades, such as better transport networks and improved accommodations in rural areas.
“Partnerships with airlines, hotels, and travel agencies to offer bundled deals could further reduce costs.
“Upgrading accommodations and amenities in underdeveloped areas would also help attract more visitors.
“For example, eco-friendly resorts in Sabah and Sarawak could tap into the growing demand for sustainable tourism,” he said.
Digital marketing strategies, including social media campaigns, collaborations with influencers, and virtual tours, are seen as key to capturing younger audiences.
A collaborative approach involving government agencies, private stakeholders, and local communities is essential to reposition Malaysia as a top domestic travel destination.
This revitalization effort is not only vital for economic growth but also for preserving and celebrating Malaysia’s rich cultural heritage.
“By addressing these challenges through innovative products, enhanced accessibility, affordability, and effective marketing, Malaysia can reposition itself as a top choice for domestic travel,” he added.
