The country expects foreign exchange earnings from tourism to surge 41 percent this year and hit a record high of RM30 billion following a rebound in travel, a report said today.

"Last year, we obtained about RM22 billion through foreign exchange and this year we hope to achieve about RM30 billion," Deputy Tourism Minister Ahmad Zahid Hamidi was quoted as saying by the New Straits Times .

The higher earnings would see the tourism sector remain as the country's second largest foreign exchange earner for the fifth consecutive year after manufacturing, he added.

The government expects visitor arrivals this year to climb back to the 2002 level of 13.3 million after dropping 20 percent last year to 10.58 million because of the outbreak of Severe Acute Respiratory Syndrome (Sars) in the region and the Iraq war.

Economists said the official forecast was within reach but the challenge was to encourage tourists to stay longer in the country to boost earnings.

In the first four months of the year, tourist arrivals jumped by 57 percent to 5.25 million from 3.33 million in the same period last year, the newspaper said.

The tourism ministry is aiming for an average seven percent annual growth in tourist arrivals to reach 14.5 million next year and 20 million by 2010, it said. - AFP