Malaysia Targets New RM30 Billion in Chinese Tourist Spending by 2025 via Xin-Ma-Tai Route, Boosting Travel from Singapore and Thailand

Tourism Malaysia Published 1 month ago on 18 October 2024 | Author TIN Media
MALAYSIA:

Malaysia is witnessing a significant influx of Chinese tourists, thanks to the thriving Xin-Ma-Tai route, which connects Singapore, Malaysia, and Thailand. This route has become a central travel pathway for millions of Chinese tourists post-pandemic, driving Malaysia’s tourism sector toward an ambitious goal of RM30 billion in spending by 2025. The travel industry’s rapid recovery in this region highlights the growing appeal of Southeast Asia for Chinese travelers and the increasing importance of multi-destination tours.

The Rise of the Xin-Ma-Tai Route: A Gateway to Southeast Asia

The post-COVID recovery of global tourism has positioned both Malaysia and Singapore as key beneficiaries of the rising number of Chinese tourists. A report by Maybank Investment Bank points out that these two nations are now among the top 10 most visited countries by Chinese travelers, largely due to their geographic proximity and ease of travel. With seat capacity from China to these destinations surpassing pre-COVID levels, Malaysia is poised to continue capitalizing on this trend.

The Xin-Ma-Tai route has been especially instrumental in driving this growth. By linking three key Southeast Asian destinations—Singapore, Malaysia, and Thailand—the route provides an attractive, diverse travel experience for Chinese tourists. Many visitors enter Malaysia by land from Singapore, taking advantage of the seamless cross-border travel arrangements between the two nations. The multi-destination nature of this route enhances the region’s appeal, offering Chinese travelers the opportunity to experience multiple cultures and attractions within a single trip.

A Surge in Chinese Tourism Spending

One of the most significant impacts of this influx of Chinese tourists is the corresponding rise in tourism spending. The Maybank report estimates that tourism expenditure from Chinese visitors in Malaysia could more than double, surpassing RM30 billion by 2025. This growth reflects the increasing spending power of Chinese tourists, who are now more willing to indulge in experiences, shopping, and leisure activities during their travels.

The growing appeal of Malaysia’s diverse tourist offerings, from natural landscapes to bustling urban experiences, has contributed to this surge in spending. Chinese tourists, known for their interest in luxury shopping, food tourism, and entertainment, find Malaysia an appealing destination with its mix of modern cities, cultural heritage, and natural attractions. Furthermore, with China’s economic recovery fueling outbound tourism, this spending is expected to climb even higher in the coming years.

Visa Regulations and Accessibility: A Key Driver

Malaysia’s relaxed visa regulations have played a crucial role in attracting more Chinese tourists. The ease of entry, with minimal paperwork and visa requirements, has made Malaysia a more accessible and convenient destination for Chinese travelers compared to other countries. This has encouraged more tourists to opt for Malaysia as part of their Southeast Asian journeys, particularly those traveling through the Xin-Ma-Tai route.

Singapore’s proximity to Malaysia has also been instrumental in facilitating this influx of Chinese visitors. Many Chinese tourists begin their Southeast Asian journey in Singapore and then cross into Malaysia by land, benefiting from the short distance and excellent transportation links between the two nations. The seamless transition between these destinations further boosts the attractiveness of the region for multi-destination tours, providing Chinese tourists with a comprehensive travel experience that includes Singapore’s modern urban landscapes and Malaysia’s rich cultural diversity.

Beneficiaries of the Tourism Boom

The surge in Chinese tourists is expected to benefit multiple sectors of Malaysia’s economy, particularly gambling and aviation. Major players like Genting Malaysia Bhd and Capital A Bhd are likely to see increased profits as more Chinese tourists visit Malaysia’s integrated resorts and casinos, and as demand for flights and transportation within the region rises.

In addition to these sectors, the food industry is also set to benefit, especially given China’s growing interest in Malaysian durians. With the export value of durians expected to reach RM1.8 billion by 2030, Malaysia’s agricultural sector is positioned to reap substantial rewards from Chinese demand for this prized fruit. The increasing popularity of Malaysian products, such as durians, among Chinese consumers highlights the broader impact of tourism on trade and export markets.

Tourism Malaysia has set an ambitious target of attracting 5 million Chinese visitors by 2025. With current trends indicating strong growth in tourist arrivals, this goal seems increasingly within reach. In 2019, 34.5% of Chinese tourists entered Malaysia through Singapore, and this figure is expected to grow as the region continues to focus on tourism recovery and promotion.

The Role of Cultural Icons in Boosting Tourism

Malaysia’s efforts to attract Chinese tourists have also been supported by effective marketing strategies and cultural promotion. The state of Melaka, for example, appointed popular Chinese actress Fan Bingbing as a tourism ambassador, a move that significantly boosted its appeal among Chinese visitors. Melaka’s decision to tap into Fan’s star power has paid off, with the state surpassing its tourist arrival targets. As of September 2023, Melaka had nearly 10 million tourist arrivals, a significant portion of which can be attributed to Chinese travelers inspired by Fan Bingbing’s promotion.

The use of cultural icons and targeted marketing strategies is likely to continue playing an important role in Malaysia’s tourism growth. By leveraging the influence of celebrities and promoting cultural connections between Malaysia and China, the country can further solidify its status as a must-visit destination for Chinese tourists.

Global Implications for Travel and Tourism

The rise in Chinese tourism to Malaysia via the Xin-Ma-Tai route has broader implications for the global travel industry. With Chinese travelers increasingly seeking multi-destination tours, other countries in Southeast Asia and beyond may look to replicate Malaysia’s success by developing similar cross-border travel arrangements. The trend toward seamless travel between neighboring nations could transform the way tourists experience international travel, creating more fluid and interconnected tourism markets.

  • Multi-Destination Appeal: The Xin-Ma-Tai route showcases the growing demand for multi-country trips, where tourists can experience diverse cultures and attractions in one journey.
  • Economic Boost: Malaysia’s tourism sector stands to benefit from increased spending by Chinese tourists, who are drawn to the country’s varied offerings and convenient travel arrangements.

As the world continues to recover from the impacts of the pandemic, the success of Malaysia’s tourism strategy could serve as a model for other countries looking to attract Chinese tourists and increase their share of the global travel market.