Operators warned against zero tour fare packages
KOTA KINABALU: Local tour operators who have been offering zero tour fare packages are urged to stop all such activities immediately, pending a crackdown by the Ministry of Tourism and Culture (MOTAC).
Sabah Association of Tour and Travel Agents (Satta) president Datuk Winston Liaw said major industry players have unanimously agreed to cancel licences of local tour operators who are found to offer zero tour fare packages, if they do not stop immediately.
According to Liaw, 20 such operators had been identified based on MOTAC surveillance, most of which are owned by China companies.
“Let this be a warning to operators who do zero tour fare. Please come to a halt because MOTAC will take stern action by cancelling tour licences, otherwise.
“If zero tour fare packages are not controlled, Sabahan operators would lose in the end because they do not profit from it as they are just the middlemen.
“Zero tour fares are a ‘one dragon’ operation where only the ‘head’ and the ‘tail’ profit, meaning the company who booked the tour and shopping centres visited by tourists.
“Our local operators are the ones on the ground receiving tourists, and they do not gain from this arrangement. This seriously affects genuine industry players,” he said.
Liaw said zero tour fare packages are generally affordable, resulting in arrival of lower-end tourists to the State.
This in turn results in some unfavourable circumstances created by tourists, he added.
As a consequence, he said, the Chinese government is looking to halt shopping station activities here in order to curb instances of zero tour fare.
“Our counterparts in China also do not favour zero tour fare services. In order to control the situation, they are considering closing down shopping stations here, as those are one of the main sources of income that support zero tour fare.
“Shopping stations do not include souvenir shops. These stations are mostly located in Kolombong, which cater specially to China tourists and only accept tour groups,” he explained.
Liaw admitted there would be setbacks to face with the closure of shopping stations, but emphasised that those were only short-term.
He assured that it would in fact strengthen the market, especially for local industry players.
“There would be a drop in tourist arrivals, yes, but that would only last a few months. Eventually, locals would learn to compete with Chinese organisations,” he said.