On a new high

Stronger currency a good sign for tourism in the long run, says MATTA chief

Malaysians buoyant as ringgit gains ground – and tourists are happy too.

Consumer sentiment is looking more buoyant as the ringgit grows stronger in relation to the US dollar.

Malaysian Association of Tour and Travel Agents ( MATTA) president Datuk Tan Kok Liang said the stronger ringgit is a good sign for the tourism sector in the long run.

“Once the ringgit stabilises, we expect a further boost to outbound travel and in long haul destinations.

“Even though the costs of inbound travel may be perceived to be higher, these are offset by lower costs if Malaysians are importing foreign products or services in our tour components,” he said, adding that overseas marketing and promotion costs are likely to decrease as well.

However, Tan said the full extent of the stronger ringgit’s impact remains to be seen until it stabilises in the next six months.

“Travel agents need to be cautious in cost- ing as long haul destinations involve planning in advance.

“They need to absorb the gains or losses in foreign exchange over the next few months, depending on the company’s business model and credit terms,” he said.

Besides the tourism industry, overseas education is another area that is growing in optimism with the stronger Malaysian currency.

David Tan, 58, said the stronger ringgit would be a big help in funding his son’s education in the United States.

“My children can have more peace of mind as they need not worry much about my financial ability to fund their education and focus more on their studies,” said the business consultant, adding that he can now contribute more to his pension fund.

Malaysians studying in the United States also rejoiced at the prospects of a stronger ringgit, one of whom is Apple Lim who is currently working in Malaysia for a year before returning to the United States for her studies.

“I’m saving up for my final semester tuition fees, which cost about US$3,600 (RM14,391),” said the 23-year-old, adding that she would wait for the ringgit to strengthen further before converting her savings into US dollars.

Amber Lee, a Malaysian who is currently residing in the United States with her family, said the stronger ringgit would help with their living expenses.

“If it does (continue to strengthen), we would see the most significant decrease in expenses in terms of college tuition fees, which is one of our biggest expenses as my brother is still in school.

“We haven’t seen the exchange rate drop to the number three in a long time, so fingers crossed (the ringgit will continue to strengthen),” said Lee, who recently graduated.

Ma Song Yi, who lives in Malaysia but earns in US dollars, said he has prepared for a tighter budget as he expects the trend to continue.

“Hopefully with a stronger ringgit, it will give more purchasing power to Malaysians in general,” said the 30-year-old tech specialist.

Yesterday, media reports emerged about the stronger ringgit that went below the RM4 mark against the US dollar.