Property developers have a promising future in Malaysia's developing tourism sector in the post-pandemic age.

Before the pandemic, the tourism industry employed about 3.5 million people in 2019 and contributed RM240.2 billion or 15.9 per cent to the country's gross domestic product.

Since the reopening of the country's borders on April 1, 2022, Malaysia welcomed 10.1 million foreign tourists, generating RM28.2 billion in tourism receipts in 2022.

Ministry of Tourism, Arts and Culture (MOTAC) anticipates attracting 16.1 million foreign tourists this year, which could bring in RM49.2 billion in tourism revenue for the country.

According to minister Datuk Sri Tiong King Sing, tourism infrastructure such as hotels, resorts, and entertainment venues will need to be expanded to accommodate the growing number of guests.

"Malaysia has a diverse range of tourist attractions, including beaches, historical sites, and natural wonders such as rainforests and mountains. Each of these attractions has the potential to attract a different type of tourist, and property developers can cater to these different segments by building hotels, resorts, and housing that offer different types of accommodation and amenities.

"Another example is the development of luxury resorts on the island of Langkawi. These resorts cater to high-end tourists who are willing to pay a premium for exclusive accommodations and exceptional services. The development of luxury resorts can provide a significant return on investment for property developers, and there is still room for growth in this area," he said.

Tiong said that property developers may also look into the creation of theme parks and other forms of entertainment.

Malaysia is home to several world-class theme parks, including Legoland Malaysia, Genting SkyWorlds Theme Park, and Sunway Lagoon, which attract thousands of visitors each year.

The developers, according to Tiong, may capitalise on this trend by constructing new theme parks and entertainment venues that provide travelers with unique and thrilling experiences.

To entice investors, he said that the government offers tax breaks for new tourism projects such as 1-3-star hotels, theme parks, convention centres, and recreational parks, with enterprises receiving 70 per cent of statutory revenue for five years.

For projects that are being expanded, modernised, or renovated, an investment tax allowance of 60 per cent is provided on qualifying capital expenses incurred within five years, which can be used to offset 70 per cent of the statutory income.

"These measures make it easier for property developers to invest in Malaysia's tourism sector, making it a lucrative opportunity," he said in his speech at the 2023 Malaysian Housing and Property Summit, which was read by Datuk Mohd Zamri Mat Zain, deputy secretary general (tourism) at MOTAC.

Meanwhile, Tiong said that the Malaysia My Second House (MM2H) Programme has contributed significantly to the property industry.

According to a 2020 MOTAC research, the programme drew around 64,000 participants between 2002 and 2019, contributing a total of RM11.41 billion and producing about 29,000 property-related jobs.

The study also discovered that the average property purchase price ranges between RM1 million and RM2 million, with top purchase locations in Kuala Lumpur, Penang, Johor, and Selangor, whereas the average monthly rental by participants is between RM2,000 and RM4,000, with this amount expected to rise to between RM4,000 and RM6,000 in the future.

Tiong said purchasing or renting a property under MM2H will benefit both the real estate business and the economy as a whole.

"One of the opportunities for property developers is the construction of high-end housing," he said.