Penang is looking beyond tourist arrivals as it pushes for federal backing under Budget 2027, with plans to strengthen air connectivity, attract major international events and protect George Town’s Unesco heritage.
State Tourism and Creative Economy Committee chairman Wong Hon Wai said the priorities were designed to grow the value of the sector while ensuring benefits reached the local economy and community.
One of the main proposals is an international air connectivity fund with matching grants to lure more direct flights from strategic markets including Japan, South Korea, Australia and the Middle East.
“With the Penang International Airport (LTAPP) upgrading project set to double its capacity to 12 million passengers a year, the priority now is to ensure that the capacity can be fully utilised through new routes and increased flight frequencies,” Wong told Bernama.
The LTAPP expansion is expected to be completed in June 2028.
Penang is also seeking a larger federal matching fund to bid for international conferences, exhibitions, sporting events, festivals, concerts and large-scale arts and cultural events.
Business events generated an economic impact of about RM1.91 billion last year, according to Malay Mail, underscoring Penang’s potential as a regional hub for major gatherings.
The fund could also support creative content, productions, local festivals and intellectual property that could be showcased on the international stage, Wong noted.
Another proposal calls for the establishment of a Unesco George Town Conservation and Regeneration Fund to safeguard the heritage city’s status as a living heritage site.
Dedicated allocations would cover the conservation of heritage buildings, enhancement of public spaces, safety and accessibility, and the preservation of traditional businesses, artisans and communities.
“We do not want to merely preserve buildings. We need to ensure that the heritage, culture and local communities continue to thrive while being able to generate new economic activities through tourism and the creative economy,” Wong said.
He stressed that Penang’s focus after Visit Malaysia 2026 should move away from pursuing tourist numbers towards high-value tourism.
Wong also called for the formula of channelling 100 per cent of tourism tax to the states in 2026 to continue next year.
“As Visit Malaysia has been extended to 2027, it is hoped that the 100 per cent allocation of tourism tax can also be continued next year,” he said.
Budget 2027 is expected to be tabled by Prime Minister Datuk Seri Anwar Ibrahim, who also holds the finance portfolio, on 9 October.
