LAYOFFS and bankruptcies will be the “new normal” for travel agencies, as the industry can no longer afford another year of zero income caused by the Covid-19 pandemic, said players.

The reimplementation of the movement-control order (MCO) will only worsen things as companies downsize and restrategise to cut costs and maintain operations.

MCO 2.0 has also derailed their plans of promoting local tourism, they said.

Malaysian Chinese Tourism Association (MCTA) president Albert Tan said many travel agencies that rely on foreign tourists have experienced no income in the past year.

“The travel agencies operated by our members have asked employees to stay on without pay. They also allowed their employees to find part-time jobs to sustain their livelihoods,” Tan told The Malaysian Insight.

“At least 50% of travel agencies have done that. The working days of their offices have been reduced to three a week. But rent and other miscellaneous expenses cannot be avoided.

“We need the attention of the Tourism Ministry. In the beginning, the ministry gave us hope that the borders will be reopened in March this year.”

The industry now predicts that revival will only start at the end of June the earliest and that too depending on the pandemic.

Malaysian Inbound Chinese Association (Mica) president Angie Ng said the new MCO has put them back at square one.

“We’re disappointed. Nobody has a good outlook for the tourism industry in 2021,” she said.

Ng said even though there are states under conditional MCO and recovery MCO, with daily caseloads in the thousands, people are afraid of travelling.

“Local tourism in some areas were picking up and we estimated that the government may open borders by April or May, and the recovery of the tourism industry may begin in earnest in June, with 20% of foreign tourists entering the country once again in July and August.

“Now, all that is moot, and we can only look forward to year-end. We were preparing to promote some tour packages and islands, but now the industry is forced to suspend operations.”

Among Mica’s 300 members, almost all are anticipating zero income for the year.

Innovation

Malaysian Inbound Tourism Association (Mita) president Uzaidi Udanis told The Malaysian Insight that its 3,000 members have started using virtual means to attract foreign tourists.

Surprisingly, they have received good responses.

“Many foreign tourists are interested in exploring the archaeological heritage of the Lenggong Valley. Our members organise virtual tours and attract many tourists from Europe, the United States and abroad,” Uzaidi said.

Sensory tours are the selling point in an online virtual tourism platform where tourists can communicate with local tour guides and experience attractions, he said.

MCO 2.0 would actually help the industry in the long run, he said, adding that they would have no hope of recovering if Covid-19 spirals out of control.

Domestic tourism will likely start recovering in the third or fourth quarter of this year.

“Mita was initially planning to welcome the return of Chinese tourists in September and October due to their Golden Week holidays. But now Covid-19 is going out of control and the reopening of the borders is nowhere in sight.”

Qatar Airways had even planned direct flights to Langkawi but now it has to be put on hold, he said.

Sabah situation

Malaysian Association of Tour and Travel Agents (Matta) Sabah manager Kennedy Fung said it would take at least two years before the tourism industry would boom again.

There are more than 500 travel agencies in Sabah and some had closed down.

“Now, we can only wait and see the pandemic situation after the Chinese New Year.

“Even if it is possible to travel, there are many restrictions. The industry can only take one step at a time.”

Tourism is the second largest source of income for Sabah.

Fung said many foreigners living in Sabah are hoping to travel in the state but restrictions have stopped them.

Selangor, Penang, Malacca, Johor, Sabah, and the Federal Territories of Kuala Lumpur, Putrajaya, Labuan are currently under MCO, while Pahang, Perak, Negri Sembilan, Terengganu, Kedah and Kelantan are under CMCO. Only Sarawak and Perlis remain under RMCO.

Prime Minister Muhyiddin Yassin also declared a state of emergency, saying it is needed for the government to fight Covid-19 effectively. – January 15, 2021.