Penang seeks 2027 Budget funding to boost high-value tourism

GEORGE TOWN: Penang is seeking the federal government's consideration to strengthen the state's tourism agenda through the 2027 Budget, including enhancing air connectivity, attracting more international events and preserving George Town's heritage.

State Tourism and Creative Economy Committee chairman Wong Hon Wai said the agenda was important to increase the value of the tourism sector and ensure that the growth of Penang's tourism industry continued to benefit the local economy and community.

He said among the main priorities was the establishment of an international air connectivity fund, including matching grants, to attract more direct flights to Penang from strategic markets such as 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," he told Bernama.

According to reports, the LTAPP expansion and upgrading project is expected to be completed in June 2028.

Wong said Penang was also seeking a larger federal matching fund to bid for and attract international conferences, exhibitions, sporting events, festivals, and concerts, as well as large-scale arts and cultural events.

Wong explained that business events generated an economic impact of about RM1.91 billion last year, demonstrating Penang's strong potential to become a major regional hub for business events and major events with its new facilities and increased capacity.

He said the fund could also be used to develop creative content, productions, local festivals and intellectual property that could be brought to the international stage.

In addition, he proposed that the government establish a UNESCO George Town Conservation and Regeneration Fund to ensure that the heritage city continues to thrive as a living heritage city.

He explained that dedicated allocations were needed for the conservation of heritage buildings, enhancement of public spaces, safety, and accessibility, as well as the preservation of traditional businesses, artisans and communities that make George Town a living heritage city.

"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," he said.

Wong said that overall, Penang's focus after Visit Malaysia 2026 should shift from pursuing tourist numbers to high-value tourism.

Meanwhile, he also called for the formula of channelling 100 per cent of tourism tax to the states for 2026 to be continued 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.

The 2027 Budget is expected to be tabled by Prime Minister, who is also Finance Minister, Datuk Seri Anwar Ibrahim, on Oct 9.