Malaysia, the Southeast Asian country known for its diverse culture and natural beauty, has been experiencing a sharp economic downturn in recent years, due to the impact of the COVID-19 pandemic, the political instability, and the low commodity prices.
The Malaysian ringgit, the national currency, has depreciated by more than 20% against the US dollar since 2019, reaching its lowest level in over a decade. While the economic crisis has brought hardship and challenges for the Malaysian people and businesses, it has also created an opportunity and attraction for foreign tourists, who can enjoy cheap and affordable vacations in Malaysia.
Advantages and attractions of Malaysia for foreign tourists
Malaysia offers many advantages and attractions for foreign tourists, especially in the current economic situation, such as:
- Low cost and high value: Malaysia is one of the most budget-friendly destinations in the world, as the low exchange rate of the ringgit makes everything cheaper and more accessible for foreign tourists, from accommodation and transportation, to food and shopping. According to the World Economic Forum, Malaysia ranked 12th out of 140 countries in terms of price competitiveness in tourism in 2019². Malaysia also offers a high value for money, as it boasts a variety of attractions and experiences, such as historical and cultural heritage, natural and wildlife wonders, and modern and urban amenities.
- Diversity and richness: Malaysia is a melting pot of cultures, religions, and ethnicities, which makes it a fascinating and enriching destination for foreign tourists, who can learn and appreciate the different aspects and influences of Malaysian society and history. Malaysia is also home to a diverse and rich flora and fauna, which makes it a paradise for nature and wildlife lovers, who can explore and enjoy the various ecosystems and habitats, such as rainforests, mountains, islands, and coral reefs.
- Accessibility and convenience: Malaysia is easily accessible and convenient for foreign tourists, as it has a well-developed and efficient infrastructure and transportation system, which connects the major cities and regions, as well as the neighboring countries and continents. Malaysia is also a visa-free or visa-on-arrival destination for most nationalities, which makes it hassle-free and easy to enter and exit. Malaysia also has a friendly and hospitable population, who speak English and other languages, and who are ready to welcome and assist the foreign tourists.
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Challenges and opportunities of the economic crisis
The economic crisis has posed various challenges and opportunities for Malaysia’s tourism industry, such as:
- Challenges: The economic crisis has reduced the domestic and regional demand for tourism in Malaysia, as the Malaysian people and businesses have less income and spending power, and as the neighboring countries and regions have also been affected by the pandemic and the political turmoil. The economic crisis has also increased the competition and pressure for Malaysia’s tourism industry, as other countries and destinations have also lowered their prices and improved their services, to attract and retain the foreign tourists. The economic crisis has also exposed and exacerbated the weaknesses and gaps of Malaysia’s tourism industry, such as the lack of innovation and differentiation, the dependence on mass and low-end tourism, and the environmental and social impacts of tourism.
- Opportunities: The economic crisis has also created new and emerging markets and segments for tourism in Malaysia, such as the long-stay and remote-work tourists, who are looking for a safe and comfortable place to live and work, while enjoying the benefits and attractions of Malaysia. The economic crisis has also stimulated the transformation and diversification of Malaysia’s tourism industry, as the industry players and stakeholders have to adapt and innovate.
