(June 16): To boost tourism, the Penang government is offering airlines a subsidy of US$10 (RM37) per passenger to fly direct between the state and three international cities in Asia.

Chief Minister Lim Guan Eng said Penang was eyeing Seoul, Yangon and Bandung as rich potential hotspots for international tourist arrivals.

He said the state wanted to encourage airlines to fly those routes, which were currently not available at Penang International Airport.

"The money will come from state coffers. This will only be given to the airlines for a stated period.

"Talks are still ongoing with the airlines," he told a press conference today at the announcement of Hilton Worldwide's first resort in Malaysia, the DoubleTree Resort by Hilton that will open in Batu Ferringhi next year.

Penang tourism exco Danny Law Heng Kiang said the state government will be utilising the hotel room fees collected from hotels in Penang.

He said the state had collected RM6.5 million since the fee collection began last year.

"We have not spent the money, so we are proposing to use it on this subsidy.

"The idea is to subsidise the direct flights until the routes are stabilised.

"New direct routes can incur high costs when they open," Law said.

He also said Penang was talking to five airlines: AirAsia, Malaysia Airlines, Firefly, Malindo and Korean Air, which were informed of the proposal last month.

"We are following up on their response to the plan," he added. – The Malaysian Insider