Proposal For Two-Tier Pricing System To Support Local Tourism

Samuel Chua

8th October 2025 - 2 min read

A plan to set different prices for local and foreign tourists could help more Malaysians travel within the country, said MIC vice-president Datuk T. Murugiah.

He said this approach would make local holidays fairer for Malaysians, as they often pay the same rates as international visitors.

Fair Pricing Between Local And Foreign Tourists

Murugiah said it was not fair for Malaysians to pay the same rates as foreign tourists, particularly in sectors such as hotel accommodation, food and beverage, tourist attractions, and domestic flight tickets.

He urged the government to adopt a more people-friendly pricing approach by setting clear price differences between locals and foreigners. Similar pricing systems have already been implemented in several other countries.

Rising Costs Affecting Domestic Tourism

According to Murugiah, higher domestic travel costs have contributed to a slowdown in local tourism growth. Statistics show that many popular destinations across Malaysia have seen a decline in local visitors, resulting in slower industry growth and reduced revenue.

He added that domestic travel costs are now higher than in neighbouring countries such as Thailand and Indonesia, where local citizens are offered more affordable travel packages.

Currency Strength And Purchasing Power

Murugiah also highlighted that comparing local tourists to visitors from countries with stronger currencies, such as the United States, Europe, or Singapore, is not reasonable.

He explained that what may seem like an affordable price for a foreign tourist could be costly for ordinary Malaysians. A pricing policy that recognises these differences, he said, would help maintain balance between local affordability and international competitiveness.

Balancing Growth And Affordability

Murugiah said a fair and balanced pricing framework would ensure that Malaysians are not burdened by high travel costs while keeping Malaysia attractive to international visitors.

He added that such a system would encourage locals to explore domestic destinations more frequently, supporting businesses and promoting sustainable tourism growth within the country.

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