‘Tourism sector feeling pinch from inflation’

THE tourism sector is starting to feel the pain of inflation and the weakening ringgit as a majority of Malaysians are spending less money on holidays.

Malaysian Association of Tour and Travel Agents (MATTA) Johor chairman K. Subramaniam said tourism was a key economic sector that would usually experience negative impact during tough times.

“Johor’s tourism sector is experiencing a slowdown and it is expected to continue until next year,” he said when contacted.

He added that business was down about 60% for inbound and outbound tourism starting from July this year.

Subramaniam said initially, businesses and companies were optimistic that the economy would rebound with the opening of Malaysia’s international borders on April 1, 2022, when the global Covid-19 pandemic situation improved.

“However, the economy has yet to get back to pre-Covid-19 days and now we are facing inflation and a weaker ringgit,’’ he said.

He added that consumer sentiment was at an all-time low and with reduced spending power, holidaying was the last thing on people’s minds now.

Subramaniam said more domestic tourists from outside Johor were now staying with relatives or friends when visiting the state instead of booking a stay at hotels.

He said Johoreans now preferred to go to public beaches, parks or urban jungles which don’t charge entrance fees.

Locals, he said, had also cut down on their overseas holidays this year because of the weaker ringgit, adding that the situation was likely to continue until 2024.

“At the same time, many Singaporeans have bypassed Johor to go to Melaka and Kuala Lumpur.

“This is because the traffic congestion in Johor Baru is getting worse and finding a parking spot is a challenge,” said Subramaniam.

Johor Homestay Association vice-president Ahmad Mohamad lamented that business remained slow even after the reopening of the country’s international borders.

He said homestay operators in the state had yet to get many bookings, especially from foreign tourists.

“Even domestic tourists are not keen to book our homestay in Kampung Seri Paya, Kulai,’’ said Ahmad.

To cushion the impact, he said, operators in Kulai and Sedenak have converted their homestay to village stay.

Under this concept, he said their property would be leased out on a long-term basis to contractors in charge of the construction activities of the Data Hub in Sedenak.

“The rent ranges between RM3,000 and RM4,500 monthly, and each house can take in a maximum of eight people,’’ he said.

Ahmad said on the other hand, the homestay options in Gunung Pulai and Kulai remained popular with domestic visitors as the Gunung Pulai waterfalls nearby was a main attraction.

“We hope Johor Tourism will come up with effective marketing campaigns to promote agro-tourism, mountain hiking and nature trails in Kulai, especially to foreign visitors,’’ he said.