60% drop in business an isolated case — Satta
KOTA KINABALU: Sabah Association of Tour and Travel Agents (Satta) president Datuk Seri Winston Liaw yesterday clarified that his previous statement of certain industry players facing a drop of 60 per cent in their business was an independent case and not the whole market average.
“After a study made and communicating with local operators, we found that the business of local operators has dropped due to lack of competitiveness against local China operators, or joint venture (JV) operators which are offering zero tour fare packages or kickbacks on tour fares as much as RM800 to RM1,000 per person.”
Under the zero tour fare arrangement, Liaw said the travel agents in China did not have to pay a cent when giving business to local Sabah operators but instead they received kickbacks in the range of RM800 to RM1,000 per pax.
“This scenario has greatly impacted the local Sabahan operators and jeopardize their survival.
“That’s why the industry players were complaining to the non-governmental organizations (NGOs).”
In a statement yesterday, Liaw said the new government, especially the Deputy Chief Minister cum Minister of Tourism, Culture and Environment Datuk Christina Liew, had done a great job in promoting Sabah.
“She followed up on every event and occasion held by Sabah Tourism Board (STB) and most events organized by NGOs.
“As an NGO, Satta appreciates her effort and the result is obvious.”
On the reason there seemed to be less Chinese tourists in the city despite figures showing increase in arrivals, Liaw explained that study showed there were 20 China-Malaysia JV companies operating in Sabah.
“Most businesses have gone to these 20 agencies due to their zero tour fare packages or kickback offers.
“They tend to stay in more remote or inexpensive hotels to keep their cost down.
“Normally hotels in Inanam or Kepayan are less expensive than those in the city.
“So the tourists are scattered widely,” he said and added that this scenario only impacted the industry between mid-October to mid-November.
In December, Liaw said most hotels and Airbnb accommodation enjoyed 85 to 95 per cent occupancy.
Additionally, he said the hotels and accommodation were fully booked during Chinese New Year while bookings for March next year was also favourable.
“We foresee continuous growth of the industry in 2019 but we should make sure that government policies benefit local Sabahan operators first.
“Unhealthy practices such as zero tour fare packages, or worse, kickbacks in tour fare should be discouraged,” he stressed.
Christina on Tuesday denied reports of tourism slowdown in the west coast of Sabah.
She said the hoteliers she met had an average of 80 to 90 per cent occupancy rate, adding that some were even fully booked in January next year.
She also said that solid evidence was needed before action could be taken on local tour operators who offered zero tour fare packages.