KUALA LUMPUR, Feb. 5 (Xinhua) -- The effect of stronger tourism activity due to the resumption of China's outbound travel could boost Malaysia's gross domestic product (GDP) by at least 1 percentage point, said UOB Global Economics & Market Research on Friday.
According to the research house's economists, the boost will further support their baseline GDP growth forecast for Malaysia of 4 percent for 2023.
The economists said the global tourism sector is expected to make a big leap forward this year as China has reopened its borders and eased domestic restrictions since Jan 8 this year.
They highlighted that more than 32 million Chinese travelers visited Southeast Asia before the pandemic mainly to Thailand, Vietnam, Malaysia, Cambodia, and Laos.
The economists also noted that tourism's contribution to Malaysia's GDP was 6.8 percent in 2019 and 6.5 percent in 2018, higher than the average level of 4.4 percent in Asia Pacific.
Chinese tourists made up 3.1 million, or 11.9 percent share, to rank as the third source of inbound tourist arrivals for Malaysia in 2019, after Singapore and Indonesia.
The World Tourism Organization projected that international tourist arrivals could reach 80 percent to 95 percent of pre-pandemic levels in 2023 despite lingering global headwinds.
Produced by Xinhua Global Service
