KUALA LUMPUR: Aquawalk Group Bhd is keeping its full-year growth target despite broader geopolitical uncertainty that could dampen tourism sentiment, raise travel costs and pressure discretionary spending in the months ahead.
Group CEO and executive director Daryl Foong Chuen Hoe said the aquarium operator continues to expect a 3% increase in visitorship across its portfolio, including Aquaria KLCC in Kuala Lumpur and its aquarium in Phuket, Thailand,, which should translate into about 6% revenue growth from RM111 million recorded in 2025.
“For the full year, we are still keeping to the 3% growth in terms of visitorship,“ he told SunBiz in an exclusive interview at its Kuala Lumpur office.
Foong said the group expects first-half revenue to remain broadly flat year-on-year, while visitor numbers could see a slight decline as softer consumer sentiment and geopolitical uncertainty weigh on tourism activity and spending behaviour.
He attributed the slower start partly to shorter school holidays earlier this year and the overlap between Chinese New Year and Ramadan, which disrupted the group’s usual seasonal visitor patterns. Softer traffic during Ramadan was offset by stronger visitor flows during the Hari Raya festive period.
Despite the softer backdrop arising from the Middle East conflict, Foong said Aquawalk remains cautiously positive due to resilient regional tourism demand and the group’s exposure to multiple tourism markets.
“The region in which we are in is resilient. The business in which we are in is also resilient, I think proven through our survival through the (Covid-19) pandemic and through two wars and now going into our third,“ he said.
Foong said the outbreak of the Iran war has introduced fresh uncertainty into the operating environment, particularly around consumer confidence, travel sentiment and discretionary spending patterns as households become more cautious amid rising geopolitical tensions and concerns over living costs.
The group is maintaining its full-year projections for now, but Foong acknowledged that a prolonged conflict could eventually force Aquawalk to reassess its outlook if the broader economic impact begins affecting tourism activity more materially.
“If the Iran war continues to drag on and the broader economic spillover effects become more prolonged and severe, particularly through rising fuel prices, higher travel-related costs and weaker consumer spending sentiment, then I think this will probably have to be revised,“ he said.
A sustained increase in fuel prices could eventually push up airfares, transport costs, accommodation rates and broader service industry expenses, potentially affecting affordability for travellers and tourism demand across the region, Foong said.
Aquaria KLCC remains the group’s largest revenue contributor, accounting for about 78% of total revenue, underpinned by its established market position, strong brand recognition and steady mix of both local and international visitors, which continue to support stable visitor traffic and profitability for the group.
Foong said the group’s expansion into new markets is aimed at reducing reliance on a single location while broadening exposure to different tourism flows and customer segments across the region.
Aquawalk is opening aquariums in Kota Kinabalu, Sabah, and Surabaya, Indonesia.
The Surabaya aquarium is expected to attract about 300,000 to 400,000 visitors in its first year of operations on a conservative basis. Foong said the attraction will cater more heavily towards domestic Indonesian visitors due to its proximity to ecotourism destinations such as Mount Ijen and Mount Bromo, with ticket prices likely to remain lower to suit the local market.
By contrast, the Kota Kinabalu aquarium is expected to command stronger pricing due to the city’s higher-spending international tourist base and growing popularity among foreign travellers, particularly from South Korea.
Foong said the Phuket aquarium is expected to continue increasing its contribution, supported by island’s tourism market, where about 60% of visitors are foreigners and 40% locals.
The overall revenue contribution ratio across the group’s aquarium portfolio is expected to remain broadly stable over the next three years, even as new aquariums are developed alongside continued growth from existing operations in Kuala Lumpur and Phuket.
Aquawalk is considering increasing ticket prices this year, although Foong said the group will likely keep increases lower for Malaysian visitors and higher for international tourists.
He said Aquawalk remains one of the most affordable aquarium operators in the region compared with operators in Singapore, the Philippines and Thailand.
However, pricing decisions will be tied to new attractions, experiences, renovations and other improvements.
“We are conscious as well about our objectives, and that is to make sure as many people as possible get to experience the wonders of the sea,“ Foong said.
On margins, he said the group’s gross profit margin has improved to about 60% from 57% over the past two years, while adjusted profit after tax has remained steady at about 35%, excluding one-off items such as the sale of Burger & Lobster in 2024.
Foong said said Aquawalk’s in-house design-and-build arm, AquaBlue, is currently more important as an efficiency driver than a direct revenue contributor as it remains heavily involved in the group’s own aquarium projects.
According to him, AquaBlue allows the group to internalise design, engineering, construction, husbandry and operational transfer capabilities, generating significant cost savings and operational efficiencies. He estimated that design fees alone could result in savings of 15% to 20%.
Looking ahead, Foong said Aquawalk’s regional expansion plans remain on track despite the uncertain global backdrop, with ongoing projects progressing as scheduled and the group continuing to explore additional opportunities beyond 2029 and 2030 as part of its longer-term Southeast Asian growth strategy.
Beyond its upcoming aquariums in Kota Kinabalu and Surabaya, Aquawalk is evaluating additional prospects across the region, supported by its in-house development capabilities through AquaBlue.
Foong said the group remains confident in the long-term fundamentals of the aquarium and edutourism industry, citing continued demand for family-oriented attractions, experiential tourism and conservation-focused educational experiences across Asia.
“Aquawalk’s expansion strategy is not solely driven by commercial growth, but also by a broader objective of increasing public exposure to marine biodiversity, sustainability and ocean conservation through accessible and interactive attractions,“ he added.
