Domestic tourism recovery will take time, say stakeholders


Khoo Gek San

While Chinese travellers used to make up the bulk of tourist arrivals, local industry players say these travellers now prefer to travel to the Middle East and Europe. – The Malaysian Insight file pic, September 6, 2022.

THE tourism industry will take time to recover after suffering a two-year hiatus due to the pandemic, and now with effects of the Russia-Ukraine war, industry players said.

They said the other factors, including high fuel prices, high air fares and shortage of manpower in the hotel and food and beverage industry are also hampering the sector’s recovery.

The operators said while many want to travel, they tend to travel overseas rather than help revive domestic tourism.

Malaysian Inbound Tourism Association president Uzaidi Udanis said after the borders reopened, most tourists coming in were from Singapore, Thailand and Indonesia. 

He said fewer tourists are arriving from Europe and the United States. 

Uzaidi however said the number of Chinese tourists to Europe, Turkey, and other countries has increased. 

“After the borders reopened, about 600,000 Malaysians travelled to Thailand, compared with about 100,000 Thais coming here,” he said. 

“The number of Malaysians travelling to Europe and Turkey is also growing. Many Malaysians who can afford it choose to travel abroad.”

According to data from the Tourism, Arts and Culture Ministry, from January to June this year, the number of Singaporeans who visited Malaysia exceeded one million. He said it is estimated that it will reach two million by the end of the year. 

Uzaidi said even though the travel packages sold by tourism operators have increased by 20% due to high fuel and air ticket prices, Malaysians still prefer to travel abroad.

“Despite inflation, it has not deterred Malaysians from travelling abroad.” 

He said since Malaysians are travelling overseas, operators are offering packages to Pakistan and other countries.

Uzaidi also said the recovery of domestic tourism would take time as the sector is facing difficulties in operations. 

He said for example, the number of ferries to Langkawi is insufficient, with only three trips daily. 

“The cost of applying for a commercial vehicle licence for tourist buses, expensive insurance, and other issues are causing the industry to be tied down. 

“We hope to meet with the Transport Ministry to assist operators in solving our problems.”

Malaysian Association of Tour and Travel Agents (Matta) Sabah chapter manager Kennedy Fung said the tourism sector in Sabah is recovering. 

The local tourism scene's recovery has been sluggish as labour shortages, price hikes and Covid-19 restrictions have forced operators to be more moderate in their endeavours. – The Malaysian Insight file pic, September 6, 2022.

“Although many tourists are starting to flock to Sabah, the tourism industry in the state has not fully recovered.

“The number of tourists has reached 700,000, which is good, and most of them are from Singapore, Hong Kong and Taiwan, as well as locals.”

He also said there are delays in arrivals, where immigration and customs clearance restrictions have caused long queues at the airport. 

“There are restrictions on foreign tourists coming to Sabah, such as quarantine and checking of vaccine certificates, which delay clearance. 

“Air ticket prices, insufficient number of flights, the falling ringgit and exchange rate have also affected Sabah’s tourism recovery. We hope the government can assist us.” 

Fung believes the tourism industry is slowly recovering, as tour package sales during the Matta Fair have gone up to RM15 million. 

“Malaysians have been unable to go abroad for two years, but many still like to travel overseas, even if the travel package is 20% more expensive than before the pandemic.” 

According to the Sabah Tourism Board, from January to June this year, 44,108 international tourists and 664,533 local tourists visited the state.

Malaysian Chinese Tourism Association president Paul Paw said a few factors are affecting the recovery of local tourism.

“First, the Russia-Ukraine war has caused fuel prices to rise, and secondly, during the pandemic, many restaurants had closed due to setbacks. 

“Because the restaurants have no manpower, they can’t handle big tour groups. 

“It is also the same for hotels with insufficient staff to provide adequate customer service.

“Due to a serious lack of staff to clean rooms, travel agencies find it hard to book in bulk, especially on weekends.” 

He said fewer flights and rising fuel prices have led to costly air fare. 

Paw also said travel agencies are recovering too slowly due to labour shortages.

“Many left or lost their jobs during the pandemic. So, it is difficult to get experienced staff. 

“We now need to hire more people. Teach them how to process travel orders, book flights and handle other reservations. There is also the issue of insufficient tour guides.”

He added that the recovery of Malaysia’s tourism industry will depend on the arrival of international tourists, including those from China, who make up the bulk of arrivals. – September 6, 2022.


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