BACK in 1973, I was working as a tourist guide and noticed a common error in the names of the Kuala Lumpur Tourist Association (KLTA) that was set up in 1963, and the Tourist Development Corporation (TDC) that was established by the Ministry of Trade and Industry in 1972.
Surely, tourists would not have the time, interest or need to form their own association. During a seminar in the mid-1980s, I proposed that TDC change its name to Tourism Development Corporation, but the director-general retorted: “We are not discussing grammar today.”
In 1987, the marketing arm of the new Ministry of Culture, Arts and Tourism, which took over the functions of TDC, was named Malaysia Tourism Promotion Board or Tourism Malaysia in short. Over a decade ago, KLTA changed its name to Kuala Lumpur Tourism Association.
Today, there are many regular reports of tourism industry leaders reminding the Government on the importance of our local tourism industry, which in 2019 contributed 15.5% to our country’s economy and employed 3.6 million persons or 23.6% of our nation’s workforce.
But so far, there had been no workable solutions that could benefit the entire tourism industry, given that it encompasses many sectors and overlaps many other industries. Moreover, inflated tourism statistics include leisure activities that have nothing to do with any tourism business.
For example, the gross value added of all tourism industries was a whopping RM240.2 bil in 2019, and this included inbound, domestic and outbound tourism expenditures. The largest contributor was domestic tourism expenditure with RM103.2 bil.
But domestic tourism was more of leisure activities and contributed little to tourism businesses, as 98.5% used land transport and over 70% stayed in unpaid accommodation provided by relatives and friends, including balik kampung trips during festive holidays.
Domestic visitors spent RM15.5 bil on petrol or diesel alone, as most of them drove their own vehicles and spent RM10.5 bil in visited households, with shopping accounted for RM39 bil and food and beverage RM14.8 bil.
Hence, businesses that benefited from domestic tourism were mainly shops, fuel stations, food and beverage outlets, hotels and public transport services.
As for travel agents and tour operators, their share of domestic tourism is miniscule. Even with domestic, inbound and outbound tourism expenditures combined, their total share amounted to only 1.8% of the total RM240.2 bil gross value added of all tourism industries.
But many travel industry leaders continued to be vocal while trying to promote the interest of their members by treating the demise of travel agents and tour operators would amount to the total collapse of the entire tourism industry in our country.
In 2019, the biggest sectors in local tourism businesses were the retail trade that captured 46.2% of total expenditure, food and beverage with 18%, and followed by accommodation that included licensed hotels and private residences.
Hotels are well represented by various tourism trade bodies such as the Malaysian Association of Hotels (MAH), Malaysian Association of Hotel Owners (MAHO) and Malaysia Budget Hotel Association (MyBHA).
MAH, MAHO and MyBHA had been issuing timely press statements and their leaders were often interviewed by the media highlighting the plight of the hotel industry. Sadly, substantial investments in the hospitality sector have been wiped off by the pandemic.
As for the travel trade, the biggest losers are those that have been operating large fleets of tour vehicles, which were mostly utilised for inbound tourists. With market values falling below the amount owed to leasing companies, tour buses have turned into negative assets.
At the onset of the pandemic, a few smart operators quickly disposed their tour buses while the vast majority hung on to their prized possessions. They should have heeded the warning given by the Prime Minister last July that the tourism sector will need four years to recover.
Meanwhile, airlines, hotels and tour operators that have been trying to survive will continue to bleed. Tourism businesses that could not be in suspended animation need life support for as long as local infections of COVID-19 remain high, with May 23 setting a record of 6,976 cases.
Until then, any tourism promotion or arrangement for opening international travel will only end up as nothing more than a ‘syiok sendiri’ exercise. The sole focus for all parties now should be bringing COVID-19 daily cases to a manageable level and making our country safe for all. – June 12, 2021
YS Chan is Asean Tourism Master Trainer for travel agencies, master trainer for Travel and Tours Enhancement Course and Mesra Malaysia. He is also a tourism and transport industry consultant and writer.
The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
