The government should introduce tax rebate incentives to boost domestic tourism, a hotel association said, after a recent surge in Malaysians vacationing in Thailand was observed.

Malaysia Budget and Business Hotel Association (MyBHA) president Sri Ganesh Michiel said the government had missed the opportunity to encourage domestic tourism by providing tax rebate incentives in the 2024 budget.

“Similarly, Malaysians go to Thailand because our currency is stronger, making it a preferred travel destination,” Sri Ganesh told FMT.

He said tax incentives would have provided the domestic tourism industry a competitive edge.

Sri Ganesh was commenting after Kedah’s immigration department revealed on Facebook that almost 100,000 Malaysian tourists visited Thailand recently, with the Bukit Kayu Hitam immigration complex processing over 78,000 outbound tourists in just four days.

Malaysian Tourist Guides Council president Jimmy Leong anticipates that the trend will persist, saying Thailand’s attractions are what drive Malaysians to cross borders.

People go to Hatyai for its affordable and unique food experiences, he said.

Leong said the current surge will affect Malaysia’s tourism sector. He urged local industry players to step up and compete to avoid Malaysians spending their money in Thailand instead of here.

Consortium Inbound Tourism Alliance chairman Uzaidi Udanis, however, said the surge of Malaysians heading to Thailand was nothing to worry about.

“Malaysians love to travel. Just because some travel to Thailand doesn’t mean there is no domestic tourism,” he told FMT, adding that some parts of Malaysia have also seen surges in hotel bookings during the holiday season.

In any case, he said locals and travel agencies must collaborate to add value to Malaysian tourism.

He proposed that Malaysia revive its traditional arts, especially silat, wayang kulit, kuda kepang and batik printing, to provide unique cultural experiences for both local and foreign tourists.

“Modern tourists prioritise experiences over destinations. They seek uniqueness,” he said