LANGKAWI – The travel trade fraternity has called on the Ministry of Finance (MoF) to consider a form of moratorium on loans taken in relation to the tourism industry in order to promote its growth.
With hours to go before next year's proposed national fiscal Budget 2024 is tabled by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim in Parliament, the travel trade community here urged for targeted help to nurse the industry back to full health.
Tourism Langkawi spokesperson Ahmad Pishol Isahak said that with rising operational costs, worsened by an acute shortage of workers and limited spending by tourists, the industry is struggling despite the fact that Covid-19 is becoming a distant memory.
"We can do with focus and targeted help by the government to ensure that the travel trade members can better deal with the challenges which had surfaced following the pandemic. We need decisive help, not sugar-coated statements," he said to The Vibes.
The industry needs an injection of investments to ensure it can offer upgraded attractions and to venture into sustainable practises such as eco-tourism, in addition to the usual saleable items of heritage, food, shopping and beaches.
He said that the previous proposition raised by Tourism, Arts and Culture Minister Datuk Seri Tiong King Sing on establishing a specific bank or finance institution to aid he recovery of tourism should be considered in the budget.
If it is not a bank, perhaps a scheme or a moratorium initiative to help the travel trade players and investors weather this age of uncertainty can be of significant help, said Pishol in an interview.
"A 12 - months moratorium can make a difference in helping the entire industry to be competitive again with their regional rivals."
He said that tourists are returning but not at a rate which is evenly spread out. It is disheartening to see a number of Malaysians preferring to travel to other countries in the rehion rather than within their own country despite the weakness of the ringgit, he said.
Also, budget travel providers continue to struggle as the big players have adequate capital to retain workers and to engage in large scale marketing, unlike small to medium-scale establishments that cannot afford the high costs of promotions, he said.
One area of disparity which Pishol pointed out is the occupancy rate, which differs between the budget and homestay accommodation providers and the five-star hospitality properties that have an international network to tap tourists.
Incentives for domestic B40 tourists
Datuk Alexander Issac, who manages the Tropical Charters Sdn Bhd, a cruise service provider, said that with more capital injected into the industry, there can be more resources devoted towards upgrading tourism products and attractions.
The private sector needs to have more promotional and marketing initiatives, he said. This would help to offset the bad publicity following reports of politicians clashing over policies related to the industry and complaints over fares provided by ferry operators and airlines.
The crux of the matter is in compelling crucial travel trade providers such as airline companies to offer reasonable fares and to study the possibility of offering special rates for B40 travellers to boost domestic consumption, said Alexander.
With the global economy remaining sluggish, especially with the flareup of tensions in the Middle East following clashes in Israel and the Gaza Strip, he added, domestic tourism continues to be the dominant force in the industry.
Meanwhile, the Langkawi Development Authority (LADA) reportedly expects tourism on the island resort to fully recover by 2025.
Its tourism division manager Dr Azmil Munif Mohd Bukhari said that the island's development authority expects 3.2 million arrivals this year, comprising domestic, regional and international visitors.
Last year, 2.5 million people visited the island. Of these 80% were local tourists, he noted.
A surge in visitors is expected due to the reopening of the outbound market in China. Langkawi is also attracting visitors from India, Britian, Australia and Singapore, he added.
The island also receives 200 flights per month now while discussions continue to bring in long haul direct charter flights from, for example, Poland, Azmil said.
He said that LADA is also extensively involved in expanding its networking outreach. – The Vibes, October 13, 2023
