Double whammy of passenger service charge, departure levy


WITH Prime Minister Dr Mahathir Mohamad due to unveil the new Visit Malaysia Year 2020 logo on Monday, Malaysians are holding their breath. Yes, we all want to see a nicer, much improved design from the earlier version. Will we?

But the logo is really not the issue here.

The first VMY in 1990 during Dr M’s first tenure as PM was a resounding success. In fact, 1990 was a watershed year for tourism in Malaysia. Once known as that place on the map between Singapore and Thailand, Malaysia became an instant hit with tourists from near and far. Our mascot then was an orangutan.

Fast forward to 2019. Many quarters especially those in the travel industry have been sceptical of the success of the VMY 2020 campaign. Their doubtis not without basis, judging from the string of events – some call them tragedies – that have unfolded in the past months. 

The aviation sector and tourism industry as a whole have already suffered a double blow. Double tragedy, in fact.

Come September 1,  anyone leaving Malaysia by air, whether local or foreigner, will have to pay a departure levy. A thing of the past for most countries, such a levy has never been introduced in Malaysia as far as we know.

Asean countries, through the Asean Tourism Agreement 2002, have all agreed to remove or not to introduce levies or charges for intra-Asean travel. Dr M was a signatory to this agreement, along with other heads of state at the the 8th Asean Summit in Phnom Penh. 

Is Malaysia now backpedalling? More importantly, are we willing to risk our position as a reputable Asean member state for an estimated RM1 billion in additional revenue?

Malaysia Airlines, AirAsia, Malindo, Firefly – every carrier which ventures beyond these domestic skies, in fact, will be affected. It is worst for first and business class passengers on full service carriers like MAS because they will be charged the most at RM150 each.

Doesn’t MAS have enough problems? Why are we discouraging people from flying the national carrier by charging them more?

The biggest bombshell was the court’s decision on Thursday to compel budget carrier AirAsia to pay Malaysia Airports Holdings over RM40 million in unpaid airport tax, known now as the passenger service charge, or PSC. 

Many see AirAsia as constantly complaining. Nothing seems to be able to make the CEO. But is that really the case?

Are such disputes with between the carrier and the airport operator unique to Malaysia? Well, there maybe issues that go unreported but could it be that AirAsia is getting better treatment in other countries that they operate? Someone said Singapore’s Changi even pays AirAsia to land at its terminals and in the past invited the long haul operator AirAsia X to relocate its hub from Sepang to Changi. Thank God they chose to stay put in the name of Malaysia. Are they now regretting it?

Hotel owners and managers are also lamenting of poor occupancy, despite Malaysia having the lowest hotel rates in the region. They say tourists are just not coming to Malaysia enough.

Back to VMY 2020. The government has to decide if it is really meant to draw foreign tourists, or a year-round ‘balik kampung’ festivities to stimulate domestic tourism. The latter can easily be achieved with the countless festivals and public holidays that Malaysians enjoy. 

Come January 1, visitors to Malaysia will be welcomed with higher airport charges and when they leave, they will have to pay a levy. We wish them bon voyage. Can we hope to see them again soon? What do you think?

* HM Salleh reads The Malaysian Insight.


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