HOW WILL TOURISM BOUNCE BACK?
Industry players ready to diversify and adopt new practices, as well as enhance workflow
TODAY marks a year since the Movement Control Order (MCO) was first imposed on the country to curb the spread of Covid-19. With restrictions in some states significantly eased under the Recovery and Conditional MCO, some economic sectors have started their recovery, while others are still struggling to find a footing in the new normal.
The tourism industry is one of the few sectors badly affected by travel bans nationwide and globally.
The Association of Tourist Attractions Penang chairman Ch’ng Huck Theng said the MCO 2.0 sent the industry further into emergency, which he dubbed the “intensive care” mode.
He said there was a glimmer of hope for the industry in the third quarter of last year, when state borders were reopened in stages, but the joy was cut short when the country started recording daily four-figure Covid-19 cases.
“The National Covid-19 Immunisation Programme (NIP) has provided some hope for the industry to resume activities, but tourism crucially needs foreign tourists, too, to generate more revenue.”
Malaysian Association of Hotels chief executive officer Yap Lip Seng said since the start of the MCO, some hotel employees had been on unpaid leave, while others had to be retrenched or take pay cuts.
He said the predicament also forced some hotel operators to reconsider their operations, with a number of the hotels forced to close temporarily until they could anticipate recovery.
Unconventional business models were also introduced to cushion losses, mainly for survival than to make profit.
“The industry has lost great talent since the beginning of the pandemic and we cannot afford to lose more.”
He said hotels were now more prepared to diversify their business, adopt and adapt new practices beyond their core businesses, and enhance workflows, productivity and efficiency.
“I believe hotels will eventually grow to be more resilient and competitive.”
He suggested that a tourism disaster management system be set up by the government, covering all aspects of tourism activities and the corresponding response plans.
“The system, to be supported by a team of experts from the private and public sectors, must be able to react automatically with ready-to-roll action plans when triggered by industry indicators.
“This can only be achieved if a dedicated fund is allocated for this purpose and revalued yearly based on the economic situation and the industry’s contribution to the country’s economy.”
Malaysian Association of Tour and Travel Agents (Matta) honorary secretary-general Nigel Wong said with the NIP roll-out, Matta had been preparing its members to be on standby for when people can travel again by studying new market trends.
“There are now more travel requests from independent and smaller groups. People are also looking for niche and unique experiences, while big groups will probably take a back seat for a few years.
“We are collaborating with Bureau Veritas Malaysia as an independent auditor and they came up with international standard guidelines to help our members handle issues similar to Covid-19.
“Members will be audited and listed internationally, subsequently receiving recognition for their safety measures. People who look them up will see their ‘verified’ status, which means their businesses are safe and reliable.”
He said hotels and other tourism players should also adopt a similar initiative so that Malaysia could be regarded as a safe destination for local and international travellers.
Wong said it was important for players to embrace digital platforms, especially those still relying on traditional business models.
“Matta has been working with several digital providers to provide training and infrastructure for members.
“Recently, we collaborated with Facebook to train travel agencies to provide them with a better understanding of online marketing on social media.”
He said more emphasis would also be given to the use of digital payment.
Matta, he added, had also been lobbying the government to either amend or revoke the Fourth Schedule of the Tourism Industry Act 1992, which he regarded as biased towards consumers.
“The current law curbed our competitive edge as an industry and this needs to change so that we can be better empowered. Digital platforms available for consumers today are foreign-based, stripping this opportunity from local players.”