Tourism Malaysia’s promotional and advertising budget has been slashed by 25 per cent or RM50 million (US$12 million) from an initial budget of RM200 million earlier this year.

The budget cut was the result of tumbling oil prices which had forced the government to trim its spending and operating expenditure.

Hamzah Rahmat, president of the Malaysian Association of Tour & Travel Agents, said: “When the promotional and advertising budget is cut, it means less tourists will visit Malaysia. As tourism is the second largest foreign exchange earner, agencies that bring revenue such as Tourism Malaysia should not have its budget cut.”

Last year, tourism receipts rose by 10 per cent to RM72 billion from RM65.4 billion in 2013. The Malaysia Year of Festivals 2015 campaign is expected to help the country achieve the target of 29.4 million arrivals and RM89 billion in tourism receipts this year.

However, with the budget cut as well as dismal 1Q arrival figures for 2015, which saw a drop of 8.6 per cent year-on-year from seven million arrivals in 1Q2014, trade members have expressed doubts that this year’s target will be met.