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Ushar Daniele

On Cenang Beach, Mohamad Zaki Najmi sells jet ski rides and boat tours in Langkawi’s turquoise water: adventure activities that have powered the Malaysian island’s tourism economy for years.
But costs are rising fast on the popular resort island, and the sea sports operator has been forced to pass them on to customers – a last resort for tourism players in Malaysia as competition for international visitors hots up across Southeast Asia.
Higher fuel prices, triggered by the US-Israel war on Iran, have forced Zaki to raise his rates. A 30-minute boat ride now costs US$30, up from US$25.
“The cost of operating boats and jet skis on the sea is higher than for regular vehicles on the road,” the Langkawi resident said.
Zaki, who has operated Seeman Motorsport on Cenang Beach since 2006, is also grappling with an apparent slump in visitor numbers.
“There aren’t many tourists these days, and we don’t have set targets any more,” he said.
He used to get between six and eight bookings a day, but this has fallen to an average of three. On some days, he gets none at all.

His experience reflects the broader challenges facing tourism authorities as they push to attract visitors under the Visit Malaysia 2026 campaign.
Compounding his difficulties, Zaki – like many small operators on the island – cannot buy subsidised petrol for commercial use.
Langkawi recorded 750,490 visitors in the first quarter, comprising 633,553 domestic tourists and 116,937 international arrivals, according to the Langkawi Development Authority. Visitor numbers notably fell month by month, from 282,128 in January to 251,211 in February and 217,151 in March.
In 2025, during Visit Kedah Year, annual arrivals rose to 3.2 million in 2025, up from 2.9 million in 2024. Langkawi, an archipelago of 99 islands, sits in the Andaman Sea off the northwest coast of Kedah on the Malaysia peninsula.
The fuel squeeze is also disrupting sea transport links. Ferry services to the island from embarkation points such as Penang have declined in recent months, according to local tourism operators.
Zuraidi Rahim, chairman of Anak Muda Madani Kedah, a youth-focused NGO, said the drop was already affecting island residents who depended on tourism for their livelihoods.
“If it continues for another month or two, the island’s economy could deteriorate further,” he told reporters at Kuah ferry passenger terminal last month.

Travel associations warn that operators have limited room to pass higher costs on to tourists, as steep price increases risk hurting demand and making Langkawi less competitive.
“Smaller operators are definitely more vulnerable compared with larger resorts,” said Subramaniam Punusamy, the Malaysian Association of Tour and Travel Agents’ Kedah and Perlis chapter chairman, citing their limited financial buffers and high exposure to fuel price fluctuations.
Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia, said island economies such as Langkawi were more exposed to fuel shocks because almost everything – from food supplies to boat tours and ferry links – depended on sea, land and air transport.
He described it as a “double logistics effect”, whereby goods have to reach the mainland first before being shipped onwards by ferry, cargo vessel or air freight to the island.
“Revenue may rise, but profitability may weaken,” Mohd Afzanizam said, adding that small operators often avoided steep price increases for fear of losing customers.
He said targeted support, including ferry incentives, better flight connectivity and small-business grants, would be more effective than broad subsidies to support tourism-related businesses during Visit Malaysia 2026.
Malaysia welcomed 10.65 million international tourists in the first quarter of this year, up 5.4 per cent from about 10.1 million in the same period last year, according to data from the Malaysian Ministry of Tourism, Arts and Culture.
The government is targeting a record 47 million arrivals under Visit Malaysia 2026, up from 42.2 million last year and 25 million in 2024.

On Langkawi, a sense of economic malaise is spreading beyond the beach, with restaurants also facing rising costs.
Mohammad Alif Aiman Asman, 29, a third-generation business owner on the island, said some international travellers, a key segment for Langkawi, were cancelling or delaying trips because of global uncertainties.
“The drop in demand is a consequence of the war,” he said, adding that operators needed to turn towards domestic visitors to ensure the tourism sector’s long-term sustainability.
“If the war continues, and we solely rely on international tourists, this can cause serious problems for our local sector,” he said.


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Businesses ranging from boat operators to restaurants are seeing a drop in international visitors to the island


Businesses ranging from boat operators to restaurants are seeing a drop in international visitors to the island.


Malaysia’s tourism-dependent Langkawi fears rising costs are deterring visitors

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Businesses ranging from boat operators to restaurants are seeing a drop in international visitors to the island

Businesses ranging from boat operators to restaurants are seeing a drop in international visitors to the island