Tourism industry suffers 75% drop in revenue because of Covid-19


Noel Achariam Chan Kok Leong

A family enjoying the view of Kuala Lumpur’s skyline from the KL Tower. Malaysia must now do more to woo domestic tourists following the collapse in number of international travellers affected by the closure of borders. – The Malaysian Insight pic by Hasnoor Hussain, July 15, 2020.

MALAYSIA is expecting a 75% drop in revenue from international tourists in 2020 compared with the previous year, Tourism, Arts and Culture Minister Nancy Shukri told the Dewan Rakyat today.

The Covid-19 pandemic, which closed borders in several countries, cost Malaysia RM31 billion in international tourist receipts, and more than RM13 billion in domestic tourism, she said.

From January to March, the ministry’s statistics also showed that revenue from international tourists dropped from RM21 billion in 2019, to RM12.5 billion for the same period this year.

Losses to the industry are calculated in terms of job cuts, salary cuts, decline in hotel bookings and occupancy, among others. 

The meetings, incentives, conventions and exhibitions (MICE) sector alone is facing losses of up to RM45 billion because of the pandemic, she said.

Nancy was replying to Ahmad Nazlan Idris (Jerantut-BN) who asked about the losses incurred by the tourism industry because of Covid-19.

Malaysia was under a strict movement-control order for nearly two months from mid-March before restrictions were gradually eased and more economic sectors were allowed to reopen in early May.

Nazlan also asked what measures the government are taking to help the industry if border controls are extended.

“We understand that international tourists are one of the biggest contributors to the industry. 

“If the borders continue to remain close what measures are taken by the government to boost tourism?”

Nancy replied that the decline in tourist arrivals started in January, even before Malaysia’s borders were closed on March 18.

“Other countries closed their borders and were issuing travel advisories because of Covid-19.

“Our focus now is to promote local tourism to fill in the void of international tourists.”

Prior to the pandemic, Malaysia welcomed between 22 million and 25 million foreign travellers each month. – July 15, 2020.


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