THE impact of the Covid-19 pandemic on the nation’s economy has been of grave concern, to say the least. While some industries are harder hit than others, few have taken as heavy a blow as the leisure and tourism sector, which has not been able to effectively operate since March last year.
As a result, many industry players, both small and big, have had to either lay off staff, or worse, close permanently, further accentuating the deep impact of the pandemic on these businesses.
However, the unveiling of the National Recovery Plan has left many questions to be answered.
Can the Malaysian leisure and tourism sector survive another four months of continuous lockdown, as proposed in the plan? What guarantees are there that these strategies will work? They clearly haven’t in the past, due to either poor enforcement or inconsistent implementation. How is it different this time around?
This prompts a further question – what are the criteria in deciding which industries can open, and in which pecking order? Presently, in Malaysia, there is a very heavy and lopsided focus on the manufacturing sector, from which numerous factories have produced a huge bulk of Covid-19 cases. This has contributed tremendously to the high case statistics, due to the nature of the operations, with staff working indoors in close proximity.
In fact, it has been documented that nearly four of every 10 coronavirus clusters reported since late February originated from factories. In contrast, less than a meagre 0.5% of reported cluster cases came from theme parks and hotels. Yet, they have been the first to close, and will be the last to open.
A big blow
The leisure and tourism sector has been among Malaysia’s biggest for employment, with a turnover of RM81.6 billion in 2019 at stake. In fact, the industry comprises almost a quarter of all employment in the country, with 3.56 million employees in 2019.
Malaysia needs to understand the importance of the services sector and how it has overtaken, and in most cases, replaced, the manufacturing sector in terms of economic contribution, as can be seen in most advanced economies around the world.
In terms of successful models for the effective management of Covid-19 while balancing industry needs and rebuilding the economy, we need only look at countries like Australia. The country has taken a “zero case” approach, locking down only for short stints, with proper contact-tracing and enforcement, while facilitating the staged reopening of key economic sectors.
This has allowed many of their key industries, particularly in the services sector, to responsibly operate and regain lost ground. Now, Australia is seeing the return of normal crowds at sporting events, while theme parks and attractions have resumed operations. In fact, the country is already witnessing a rebound of its domestic tourism and leisure sector, which has seen significant spikes in growth.
Malaysia needs to be mindful that any unnecessary delays in effectively addressing Covid-19 and reopening the leisure and tourism sector will result in significant lost revenues to some of our Southeast Asian neighbours that have been better at managing this issue. Naturally, they are poised to win the day. Time is of the essence. Whoever is late to the party will miss out on the huge expected tourism rebound. Tourism is already starting to see a rebound in Europe and the Middle East, as many tourism and leisure businesses are starting to open up as mass vaccination programmes rapidly roll out.
Lack of voice
While other key sectors have lobbied strongly and spoken out to put their interests at the forefront of both the government and public’s mind, the Malaysian attractions industry has lacked a voice and strong advocates to put forward its interests.
The importance of the attractions industry within the overall leisure and tourism sector should not be underestimated, given it is one of the larger employers and a strong contributor to domestic and international tourism revenue. I feel sorry for the likes of Genting, having spent US$1 billion (RM4.1 billion) on its new Genting SkyWorlds Theme Park, which will help the country drive domestic and international tourism, creating many jobs while supporting a wide variety of businesses. Yet, it is unable to open until year-end.
This country needs a transitional group of entrepreneurs to lead the leisure and tourism sector into the future. Without it, we will face competitive issues very soon. The endless lockdowns are killing newcomers, depriving the industry of future tourism leaders and players. We need new ideas and fresh blood.
Impact on mental health
Many Malaysians have experienced the great impact this pandemic has had on their mental health. We have effectively become prisoners in our own homes, and have been severely restricted in going outdoors and undertaking recreational activities. Studies have shown increased depressive, anxiety and stress symptoms during the pandemic, with depression rates showing the greatest increase.
A vital part of our physiological health and well-being is being able to enjoy the outdoors and pursue recreational activities, which help alleviate much of this problem. However, the lockdown has had a very detrimental impact on many recreational attractions across Malaysia, with many closing for good. Our ESCAPE Parks have also not been able to operate, much to our frustration, which has not only severely impacted our business, but also our employees and customers. ESCAPE Parks offer Malaysians large open spaces to take in the sunshine, play, exercise and have fun – really no different from jogging, which has been allowed.
Ultimately, the government needs to clearly detail once and for all how we are going to overcome the pandemic with a clear and consistent plan. This is important to balance industry needs and support key economic sectors, such as leisure and tourism, to reopen, and to try and address the huge losses we have all sustained and get our country moving forward again. – The Vibes, June 19, 2021
Sim Choo Kheng is founder and CEO of Singapore-listed attractions company Sim Leisure Group. He is a veteran with over 30 years of industry experience, and the owner and operator of ESCAPE Parks and the recently acquired indoor edutainment centre KidZania Kuala Lumpur
