AS the country learns to live with Covid-19, tourism industry players have said an expected recession and raging inflation is going to place further hardship on businesses.

They are keeping their fingers crossed and hope that Malaysians will still help the domestic tourism industry.

They hoped more foreign travellers will also come to Malaysian shores but warned against placing a premium on Chinese visitors as Beijing grapples with a spike in Covid-19 cases.

Malaysian Association of Tour and Travel Agents (Matta) president Tan Kok Liang said that the market was cautiously optimistic.

However, he said the positive attitudes toward an increase in Matta Fair exhibitors for next year was encouraging for the industry.

“Next year, our 52nd Matta Fair will be on March 17-19 and, as of now, we are already touching 1,100 booths for exhibitors.

“We have moved the fair to the Malaysia International Trade and Exhibition Centre.

“It shows that there is confidence in the market for the business to pick up as

Malaysians are continuing to look to travel,” Tan told The Malaysian Insight.

The 51st Matta Fair was held last September, where Tan said only about 350 exhibitors took part.

“Looking at the trend, we are optimistic for 2023 based on the response by exhibitors, and the state, national, regional and international tourism boards.

“It shows that we have to be cautious but we are also on the positive note of recovery,” he added.

However, Tan said global recession is something that cannot be disregarded.

“The high inflation rates, with global recession coming and with food supplies issues coming, these are challenges which we cannot pretend does not exist.

“Therefore, the impending global recession with high inflation is something that cannot be ignored and that most countries won’t be spared from the financial situation,” he said.

Tourism is one of the biggest contributors to the nation’s gross-domestic product.

Tan said tourism in Malaysia has to get more visibility internationally if it wants to lure foreigners to our shores.

“We have to get more visibility, in our market, in our overseas promotion, in our social media, and getting into high branding,” he said.

With China emerging from nearly three years of self-imposed isolation starting January 8 next year, Tan said the Malaysian tourism industry should not get carried away.

He advised businesses to be cautious and learn from past experiences, saying the country had suffered enough over the past few years.

“The tourism industry in Malaysia should not be overly excited with the China market,” Tan said.

“China is one of the top three tourist sources to Malaysia, other than Thailand and Singapore.

“They were the key arrivals to Malaysia pre-pandemic. Now, I think we have to be cautious of the figures we are getting,” he added.

Amid concern over the spread of a new Covid-19 variant in China, Tan said Malaysia must observe strict safety measures at its borders.

On Friday, the Health Ministry tightened entry for all tourists, including those for China, by introducing a slew of measures including temperature checks and immediate quarantine for symptomatic cases.

“I think after more than two years of battling Covid-19 pandemic, we have to position ourselves to be extremely cautious because we have really suffered over the past few years.

“We don’t want a sudden surge in cases again,” the Matta president said.

“I think health and safety protocols are still crucial and it is one of the hopes for the industry. We have learned from the bitter experience of Covid-19 and we can say it was disastrous.

“Even though Covid-19 is more or less contained now, we are not sure about the surge of cases in China, or the variants there.

“So, we must learn from our past mistakes, and hold to our health and safety protocols,” he added.

China is one of Malaysia’s largest sources of tourism with around 3 million Chinese tourists arrived in 2019. 

The Malaysian Ministry of Tourism, Arts and Culture, through Tourism Malaysia, is targeting some 15.6 million tourists and generating RM120 billion in revenue next year.

However, Tan said the expected number of tourists is just 60% of those achieved in 2019.

In 2019, Malaysia registered 26.1 million tourist arrivals and RM86.1 billion tourist receipts.

Tourism needs domestic visitors

Despite the excitement now hovering over international tourism, Tan said the domestic market should not be forgotten.

He said Covid-19 had proven how domestic tourists were crucial in the revival of the industry.

“We have to hinge on the domestic market. Covid-19 has proven that it is good.

“It has proven to businesses, who have focused on international tourism, that they have a domestic market, which is doing good.

“Hence, we must not let go of it,” he said.

Tan said the government should offer more incentive for Malaysians travelling domestically.

Citing costly air fares, he also urged the industry to give special rates for Malaysians to boost domestic tourism.

“Looking into the domestic market, for example states like Sabah and Sarawak are hidden gems but the air fares are expensive.

“Instead of wanting to go to Kuching, people would rather go to Thailand.

“The Malaysian government should encourage holidaymakers to travel domestically.

“To boost the domestic market, the government can probably give tax relief and maybe the industry players also could give a form of incentives for the Malaysians by offering special rates for them,” Tan said.

During Budget 2022 tabled in October, which now has to be tabled again following the general election, the previous government had allocated RM25 million in incentives – in the form of discounts, vouchers and rebates for lodgings, tourism packages, handicrafts and artwork up to RM100 – to encourage people to go on holiday to a domestic destination of their choice. – January 1, 2023.