GEORGE TOWN – As the holidays dissipate and the school term reopens back into the in-person arrangement, the rate of Malaysians travelling is also expected to drastically reduce until the year-end holiday season picks up.
Other than next month's Hari Raya Aidiladha, there will not be that many extended stretches of breaks for the average person to relish after over two years of being confined indoors due to the Covid-19 pandemic and related lockdowns.
While the good news is that crowd and traffic congestion may lessen in public spaces, for the tourism sector the question is how to sustain the strong momentum it has had since it was reactivated last October.
What lies ahead for the tourism providers?
Chances are that in the next few months, there would be crowds but not at a level which is pleasing to the tourism community as momentum is expected to taper off, said former chairman of the Kedah chapter of the Malaysian Association of Travels and Tours Agents (Matta) Ahmad Pishol Isahak.
While foreigners may be enticed to come over, Pishol argues that the volume of international tourists still pales when compared to pre-pandemic numbers.
Recently, Minister of Tourism, Arts and Culture (Motac) Datuk Seri Nancy Shukri revealed that some one million foreigners have entered the country since borders reopened on April 1.
But in 2019, over 26 million foreign tourists came ashore, so one million is not exactly something to be prideful about, said Pishol, who pointed out that this time, the world has changed in other ways as well.
"The Russia-Ukraine war, the food shortages, inflation which is driving a rise in living costs and the uncertainty of when Covid-19 becomes an endemic. It is a classic case of all bad coming together at once."
This also reflects a possible global recession, he added.
So when people are worried about their jobs during a recession, why should they want to travel even when digitalisation and marketing has lowered travel costs, he asked.
Here, some segments of the tourism industry, particularly those involved in the business traveller area, feel they have the right ‘vaccine’ to help tourism recover its glamour position in the country's economy – as the number two foreign exchange currency earner.
And these proponents have the data to power their belief that meetings, incentives, conventions and exhibitions (Mice) may just be the lifesaver for tourism.
But they need a buy-in from everyone for it to be a success.
Business tourism brings the numbers
The Malaysian Convention Exhibition Bureau revealed that by 2020, business events in the country would be worth RM3.9 billion and can create an addition of 16,700 jobs in areas such as medical, science, technology, finance, education, and commerce.
In 2011, business tourism contributed RM10.7 billion and its spillover impact was estimated at RM17.6 billion, where an average business visitor spent RM7,418 and stayed three times longer than an average tourist.
Malaysia was reportedly in the top five of preferred business tourism locations in the Asia Pacific before Covid-19 came along to disrupt everything.
But just like how the sun will rise tomorrow, there is hope that growth momentum for the segment can return.
In recent interviews, the Malaysian Association of Convention and Exhibition Organisers and Suppliers (Maceos) president Francis Teo was confident that the MICE business will gradually recover and grow at full speed after international borders reopen.
With the market sentiment gradually returning, Teo notes that there has been a surge of bookings for physical events.
In terms of venue rates, he says it is competitive for the first half of the year, while most venues have been fully booked for the second half.
Teo, who manages the Setia Spice Convention Centre here, said that things are hopefully looking up although there were of course concerns about the war and recession.
Penang Convention & Exhibition Bureau (PCEB) chief executive officer Ashwin Gunasekeran is unperturbed, preferring to focus on what can be done.
A strong believer that business tourism is the next wave for tourism here, Ashwin is now working with tourism authorities and airliners to improve flight connectivity.
PCEB has events lined up for the next five years and Ashwin feels that business travellers are conscious enough to not allow external issues to derail their hopes of organising key events which can stimulate their businesses globally.
PCEB is also flexible on allowing hybrid arrangements to take place, meaning a partial webinar teleconference blended in with a physical gathering.
Meanwhile, Maceos has introduced the SafeBE Certification Programme.
“Currently, five of our member convention centres have been certified under Maceos’ SafeBE Programme, which is audited by a third party, Bureau Veritas,” Teo highlights.
First wave of endemic events
Climbing on the Mice bandwagon, is The CEO Malaysia magazine publisher, FM Media Communications Sdn Bhd, who were among the first organisers to hold a dinner event, barely weeks after the standard operating procedures (SOPs) were eased.
Its executive director Muhammad Fairos Ayub and managing director Ema Malina Abu Bakar Tajudin welcomed back social events.
And together with Bernama chairman Senator Datuk Ras Adiba Mohd Radzi, they organised a Women's Excellence Awards at the Shangri-La Kuala Lumpur in March.
The event, in collaboration with The CEO Malaysia magazine, managed to gather companies worth more than RM500,000,000.
More than 350 guests attended the prestigious awards ceremony, which was officiated by Datuk Mastura Mohd Yazid, Deputy Minister in the Prime Minister’s Department (Special Functions).
“I hope this award will be an example and a benchmark to other female entrepreneurs, to achieve greater heights for the prosperity of the country. Let’s work together to contribute to the recovery as well as the renewal of the economy," Mastura said.
Penang-born Ema campaigned hard to bring the event together, saying that Mice needs to be revived as it can generate many spillovers in the tourism sector.
And in her hometown, the Entrepreneur Foundation of Malaysia also went ahead to host the first ever northern edition of the SME and Entrepreneurs Business Awards (Seba) 2022 at the Spice Hall here in March.
They invited the Yang di-Pertua Negri Tun Ahmad Fuzi Abdul Razak to grace it and 27 industry players were nominated for various categories.
These SMEs and entrepreneurs come from a multitude of industries including F&B, education, hospitality, logistics, automotive, engineering, manufacturing, information technology, digital solutions, healthcare, beauty & wellness and so forth.
Among the winners were David S.T. Loh, a former photographer with The Star newspaper and Reuters. He won for his innovative drone shots and his entrepreneurship to commercialise it.
Loh explained that Mice can generate a sense of excitement for the badly mangled tourism sector, as it has many organising capacities to it.
"People like to be involved in touristy things which are organised," said Loh.
Loh said that the award has inspired him to produce his Over Malaysia pictorial book, which showcases most of the country's landmarks from a bird's eye view. – The Vibes, June 6, 2022
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