PETALING JAYA: Malaysia’s reputation as a value-for-money destination could be at stake ahead of Visit Malaysia Year 2026 with rising food and goods prices at tourist hotspots threatening to deter travellers and deepen resentment among locals.
Federation of Malaysian Consumers Associations (Fomca) CEO Dr Saravanan Thambirajah said inflated prices in popular tourist areas carry a “double burden”, which means tourists are shocked by the cost while locals struggle because they depend on the same shops, restaurants and markets for essentials.
He said locals, particularly those from lower and middle income households, are hit hardest as many spend nearly 40% of their income on food and daily necessities.
“In certain tourism-heavy towns, the price of a meal or groceries could be up to 30% higher than in non-tourist districts. Residents then face the unfair choice of paying inflated rates or travelling elsewhere for affordable goods.”
He also said Fomca and the National Consumer Complaints Centre have received numerous reports from locals in such areas.
He added that the most common grievances were food and beverages priced two or three times higher than in surrounding towns, and basic goods such as bottled water, snacks and household items being sold at unjustifiable mark-ups.
“A major concern is the lack of price transparency. Many businesses do not display prices, leaving consumers to deal with inflated bills only when paying.
“Some residents have also highlighted dual pricing, in which foreign tourists are charged one rate while locals pay another. These practices undermine fairness and trust in the market.”
He said unchecked profiteering breeds resentment.
“When residents feel tourism only brings higher costs without tangible benefits, they may grow hostile towards visitors and unsupportive of government tourism policies. This risks damaging Malaysia’s reputation as a welcoming destination.
“The solution lies in inclusivity. Locals must share in the benefits of tourism, whether through jobs, infrastructure improvements or affordable access to essentials.”
Saravanan said while the Price Control and Anti-Profiteering Act 2011 empowers the Domestic Trade and Cost of Living Ministry to act against profiteering, enforcement in tourist areas has been inconsistent.
“Seasonal price controls are applied on selected essentials during festive periods but many businesses exploit weak monitoring. Tourists in particular are less likely to complain due to lack of awareness or language barriers.
“Authorities could balance profit and fairness by requiring transparent pricing, stepping up enforcement and encouraging community-based alternatives. Businesses in tourist zones should be mandated to display prices clearly, with regular checks to ensure compliance.”
Universiti Teknologi Mara tourism economics lecturer Prof Dr Mohd Hafiz Hanafiah echoed the concern, adding that rising menu prices and inflated costs of goods at tourist hotspots are eroding Malaysia’s advantage against regional competitors such as Thailand, where tourist spending is higher.
“Malaysia is still considered affordable because of the weak ringgit, but that image (becomes) fragile when cases of overcharging or hidden prices surface at tourist destinations, such as in the recent Langkawi water activities incident.”
He said if a tourist pays RM10 for a bottle of mineral water in Port Dickson or Langkawi, the experience would be judged against Thai beach towns, where prices are prominently displayed and spending is more transparent.
Mohd Hafiz also said if locals feel priced out of their own city centres, resentment towards tourism could grow, driven by higher living costs, overcrowding and perceptions of unfairness.
He cited social media flare-ups such as the Langkawi “ikan siakap” (barramundi) case as proof of how quickly price controversies could spark public anger and tarnish the image of the country.
“A balance could be struck if policies promote transparent pricing and tiered options, especially in rural and island destinations.
“With the right incentives, businesses could stay profitable while keeping prices fair, preventing ‘tourist-only economies’ and preserving Malaysia’s reputation as an (affordable) destination.”