KUALA LUMPUR: The government’s waiver of visa fees for tourists, including those from China, as part of the revised Budget 2015 is only a “half-hearted” gesture which will not help meet the targeted 2.3 million Chinese visitors this year, said the Malaysian Association of Tour and Travel Agents (Matta).

Matta president Hamzah Rahmat said the move will cause the country to lose billions of ringgit needed to stimulate the economy, which is experiencing a slowdown due to plunging global oil prices and a weakening ringgit.

“VFF (visa fee-free) is no big deal and will be perceived as only a half-hearted gesture. We will probably get about 1.76 million China tourists this year, instead of 2.3 million by allowing visa-free entry for 14 days.

“Paying for a visa is not the main issue as the amount is peanuts to most Chinese tourists, who are the world’s biggest spenders.

“What has deterred many from visiting Malaysia is the hassle of having to apply and wait for a visa,” he said in a statement to The Malaysian Insider.

Prime Minister Datuk Seri Najib Razak announced measures on Tuesday in the revised budget, including VFF entry for tourists as a strategy to ensure balanced economic growth, inclusiveness and sustainability.

After the announcement, Home Minister Datuk Seri Ahmad Zahid Hamidi said the move could be implemented before the Chinese New Year celebration.

“No visa fee will be imposed on some segments of the tourist market due to the drop in tourist arrivals, especially from China.

“However, it should be remembered that a visa is still required in the interest of national security. While we want more tourists to visit Malaysia, we cannot compromise on security,” he was quoted as saying by national news agency Bernama.

But, Hamzah hit out at Zahid and said such excuses had not prevented the presence of over three million undocumented migrant workers in the country.

“Matta has repeatedly pointed out the need for visa-free entry to attract more tourists but sticking to our guns will only result in a loss of several billion ringgit which is sorely needed to pump up our economy.

“It is regrettable that we are only trying to play catch-up with Asean countries that had earlier waived visa fees when we should seize the opportunity now to overtake them by granting visa exemption,” he said. — The Malaysian Insider

This article first appeared in The Edge Financial Daily, on January 22, 2015.