KUALA LUMPUR: With the Covid-19 pandemic still ongoing, Malaysians are no longer thrilled to go for short escapes or "jalan-jalan" trips anymore.
Nielsen Malaysia managing director Luca de Nard said Malaysians had cut their non-essential expenses in the second quarter of this year.
"Malaysians have become more careful about their spending. Our survey shows that consumers are spending less on new clothes (53 per cent vs. 48 per cent in Q1 2020), out-of-home entertainment (50 per cent vs. 43 per cent) and holidays or vacations (44 per cent vs. 38 per cent)," he said.
De Nard said this consumer pattern would persist as long as Malaysians continue to face job uncertainty and insecurity.
"While the Prihatin Rakyat Economic Stimulus Package was a necessary measure to slow the drop in consumption, the focus should be on long-term job creation measures.
"As long as job security remains a top concern, we can expect Malaysians to continue their cautious approach when it comes to spending," he said.
Malaysians' sudden thriftiness has not gone down well with the domestic tourism sector.
The Malaysia Inbound Tourism Association (Mita) president Uzaidi Udanis said tourism spending differed based on a person's occupation and income status.
"Tourism expenditure from civil servants remained steady due to holiday incentives from the government.
"For example, Tourism, Arts and Culture Minister Datuk Seri Nancy Shukri had announced a special Cuti-Cuti Malaysia package for civil servants.
"I heard that the government is planning to give five extra leave days to civil servants to encourage them to go for vacations," he said.
He also said middle-income households were spending less on holidays due to the economic slowdown.
"The disposable income of middle-class Malaysians is not big.
"Based on our survey, middle-class Malaysians decide their travel destinations based on cost, travel duration and the opportunity to experience local cultures.
"Mita is arranging for special offers, such as day-trip packages to places like Raub and Sekinchan, to attract those from the middle-income group," he said.
Although the domestic tourism scene was active, Uzaidi said, the tourism industry was bracing for the worst when the moratorium on bank loan repayment ends next month.
Meanwhile, FAY Holidays Sdn Bhd managing director Fay Yunus said travel agencies were barely surviving due to the intense competition among industry players.
"Only two out of five customers go to travel agencies to buy holiday packages.
"Most of them deal directly with hotel and resort owners who offer them cheap deals, with which we are unable to compete."
Fay said travel agencies only get discounted rates from hotel and resort owners if they book rooms in bulk, which is a big risk due to the ongoing pandemic and economic uncertainty.
Fay, who is also Mita vice-president, said she welcomed additional government support for travel agencies.
"Besides the loan moratorium extension, Mita is also requesting the government to consider suspending the requirement for travel agencies to have physical business premises for at least two years.
"Currently, travel agents are working from home because we are still not allowed to open our premises (due to the ongoing pandemic). And yet, we still have to pay rental dues to landlords," she said.
Fay believed the best way forward for the industry was for the government and travel agencies to brave these tough times together as partners.
"The government should provide holiday incentives for civil servants through travel agencies. That would be a win-win for our businesses and the government as it would spur domestic tourism," she said.