The Malaysian Association of Tour and Travel Agents (MATTA) welcomes and fully supports the recent proposal by Minister of Tourism, Arts and Culture, YB Datuk Seri Tiong King Sing, that Malaysians travelling domestically should be eligible for deductions from their income tax and thus promoting domestic tourism and thereby travel expenses within Malaysia.
MATTA commends Tiong’s proactive leadership in seeking innovative ways to encourage domestic tourism, especially as we build our momentum toward Visit Malaysia 2026. By allowing tax deductions on expenses incurred on domestic travel, the people will be further incentivized to support local tourism stakeholders such as travel agents and tour operators, and hotels, local business enterprises and local communities.
In support of this proposal, MATTA calls for the tax deductions to be applied specifically for travel expenses booked through various stakeholders, such as licensed travel agencies and tour operators, and hotels. This measure will ensure that government-supported incentives reach legal tourism operators and industry players, further strengthening the industry’s integrity, professionalism and contribution to the economic growth of the country.
MATTA President Nigel Wong stated, “The Minister’s proposal is a progressive step towards boosting domestic tourism and ensuring that travel within Malaysia remains both accessible and beneficial for Malaysians. MATTA has advocated for such support measures in previous submissions for the national Budget to the Ministry of Finance. We believe that incentivizing Malaysians to explore local destinations will not only boost domestic tourism but also create ripple effects that support job creation, economic growth and cultural exchange within the country.”
Wong added, “MATTA has, in past budget proposals, consistently championed similar measures, recognizing the potential to build a strong and sustainable tourism industry. We look forward to collaborating with the Ministry of Tourism, Arts, and Culture as well as the Ministry of Finance to realize this plan, which will contribute significantly to the success of Visit Malaysia 2026 and beyond.”
In their recent proposals for the National Budget 2025 that was submitted to the Ministry of Finance and the Ministry of Tourism, Arts and Culture, MATTA reiterated their stand in advocating for the re-introduction of tax exemptions from the statutory income earned for travel agents and tour operators who bring in a minimum of 750 international tourists or 1,500 domestic tourists per year. Before the pandemic, this policy significantly boosted both international and domestic tourism in the country. MATTA urges the government to reinstate this similar policy with these exemptions to further encourage the travel agents and tour operators towards stimulating more domestic tourism activities.
In 2019, the tax exemptions initiatives given to travel agents and tour operators resulted in 26.1 million tourist arrivals contributing to RM 86.1 million worth of income for the nation. The policy helped smaller tourism operators to create attractive packages and expand their reach thus creating a positive economic growth for the tourism industry in Malaysia.
MATTA reiterates the need for additional measures to further push the growth of domestic tourism in the country, and we seek the Ministry of Finance to seriously consider and approve this proposal of tax deductions for expenses by Malaysians for domestic travel and tourism in the country.
Source – MATTA