GEORGE TOWN, Oct 11 — The RM100 million allocation to build cable cars on Penang Hill will help to generate economic growth and spur the tourism industry, Penang Hill Corporation (PHC) said today.

PHC, in an official statement to thank Putrajaya for the allocation, said the cable car project will still need to be subjected to a thorough technical feasibility study and approval from relevant authorities.

"Currently, the tender process of the pre-feasibility study is in progress before the full technical feasibility study can be carried out as next steps,” it said.

PHC said the number of local and international visitors to Penang Hill has been increasing over the years.

It said the Penang Hill Funicular Service recorded 1.74 million in ridership in 2018 and that the hill resort continues to attract local and foreign visitors alike.

"PHC believes that the new cable car system in Penang Hill will be an additional iconic tourist attraction for Penang,” it said.

It added that the cable cars will provide an alternative mode of access to Penang Hill while giving visitors an aerial view of the hill.

"PHC will ensure the project is well-executed in accordance with the technical requirements,” it said.