MALAYSIA stands to lose RM500 million from Chinese tourists if it misses the May-to-August travel period, said industry players.

They told The Malaysian Insight that the May holiday period is usually a peak time for the tourism sector but with travel restrictions worldwide due to the Covid-19 pandemic, the signs are not encouraging at all.

Local operators are not optimistic about a recovery and that future tours will be conducted on a smaller scale.

“Based on past trends, we would usually have up to 7,000 groups of Chinese tourists in July and August, bringing huge foreign-exchange income to the country,” said Malaysia Inbound Chinese Association president Angie Ng.

“If this wave is missed, the tourism industry could lose up to RM500 million.”

The next window of opportunity is in November, when China celebrates its National Day holidays, she said.

Malaysian Chinese Tourism Association (MCTA) president Albert Chen said there are now no Chinese tour groups coming to the country and MCTA is not expecting a recovery next month.

“The coronavirus pandemic has hit the entire tourism industry and it is estimated that RM270 million has been lost so far.

“This pandemic is worse than SARS in 2003. Many tourists dare not travel and 90,000 Chinese have not gone abroad in a month.

“Although 2020 was meant to be Malaysia’s tourism year, the planned activities have been reduced by 50%.”

He said 60% to 70% of MCTA members focus on visitors from the mainland, but since the collapse of the Chinese market, they have turned to India, Europe, the US and Southeast Asia.

Ng said local tourism operators are not confident about a rebound and see smaller and fewer tour packages in the future.

Previously, the bigger travel agencies could offer 700 to 800 tours, she said.

“Tourists now prefer to be conservative rather than travel in large groups.”

Chen said given the travel curbs overseas, the tourism industry in Malaysia will focus on domestic packages once Putrajaya lifts its movement-control order (MCO).

Operators will encourage Sabah and Sarawak folk to travel to the peninsula, and step up tourism promotions in Penang, Ipoh, Johor Baru and Kuala Lumpur, among others.

“We hope that during this period, hoteliers will get help from the government’s economic revitalisation package, such as a 15% discount on electricity costs, which can lead to better room prices for customers,” said Chen.

“We are grateful for the government’s RM1,000 personal income tax relief for spending related to domestic travel, which will help promote the local tourism industry.”

He hopes the low-interest loans provided to travel agencies under the stimulus package will be processed without delay.

“Travel agencies need capital turnover. If the loan approval takes two or three months, it will not help.”

Malaysia recorded 2,908 coronavirus cases with 45 deaths as of yesterday. The nationwide MCO to break the chain of infections is in place till April 14. – April 2, 2020.