Surviving The Impact of Covid-19:

Tourism industry waits to cruise out of the

doldrums
The tourism industry remains “unpredictable and fragile” as the pandemic is taking
an extremely long time to end, causing most of the association’s agencies to enter
hibernation mode while awaiting a return to normal.

The MCO and its multiple variants — CMCO, Recovery MCO, Enhanced MCO
and Targeted MCO — are keeping our borders shut and disrupting travel. “The
tour and travel agent industry is facing immense cash flow problems with near to
zero revenue since March,” Tan laments.

Apart from the 95 tourism agencies and tourism activities operators who have gone
bust, others whose income has been affected include experienced independent
professionals such as tour consultants and tour guides, he says.

If he could go back in time to January, Tan would have the entire spectrum of the
tourism industry value chain pool their resources, talent and ideas to find ways to
weather the adverse economic conditions.

“With the pandemic unresolved, coupled with the global recession, there will be
weak demand, especially in the leisure travel segment,” he says. He expects things
to get worse in 1Q2021 before the industry starts to stabilise.

Travel has become a lifestyle, so being confined at home can be frustrating for
many, he says. Matta expects to see pent-up demand for travel in 2Q2021.
However, Tan cautions that spending may be curtailed given people’s lower
purchasing power and the poor economic conditions.

Matta also hopes that a vaccine will be widely available for travellers and most
Malaysians by 1Q2021 and that health and safety protocols, including policies for
quarantine measures, will be reviewed.

Tan believes prudent easing of protocols will encourage leisure travel. “At the
moment, quarantine policies and PCR testing are major deterrents for leisure
travellers,” he says.

The emphasis next year, Tan points out, should be on new business models and for
tour and travel agents to diversify their offerings instead of relying on traditional
sightseeing tours and mass tourism.
Matta would like to reset tourism and offer more experiential travel and implement
changes to travel packages in accordance with travel patterns and business models
without compromising on health and safety protocols. Tan acknowledges the need
for new tourism strategies to create demand for travel.

The tourism industry can expect to take a fresh approach to destination marketing
based on the new travel patterns, with emphasis on digitalisation and product and
infrastructure development, he says. “This could be significant to all stakeholders
as it can be an opportunity for reflection and reinvention — towards a better and
more sustainable tourism future.”

Adapted from Vasantha Ganesan, The Edge Malaysia, January 11, 2021