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Malaysia estimates RM165bil in losses from tourist expenditure this year

KUALA LUMPUR: Malaysia estimates to lose RM165 billion in tourist expenditure in the year 2021, as the country's tourism sector came to a standstill since last year due to the Covid-19 pandemic.

Tourism, Arts and Culture Minister Datuk Seri Nancy Shukri said this figure is an estimated projection of an increase in loss, as the country recorded RM135 billion losses in 2020.

She said the increase in losses might also be due to the implementation of the Movement Control Order (MCO) 3.0 imposed nationwide, that had effectively disabled interstate, inter-district and international tourism activities in the first half of this year.

"Tourism is more than just for leisure as it also provides jobs and stable incomes that supports one in every four jobs, particularly for destinations reliant on the sector.

"However, there is significant progress in terms of health indicators, economic response measures and sector roadmaps as the region is starting to reopen, while the level of tourism operational activity remained low," she said when delivering her keynote speech at the 2021 Asean Leadership and Partnership Forum (ALPF) today.

Nancy said the tourism sector players, especially in Asean countries, would need to re-strategise their revival plan post-Covid-19 to gain a competitive edge for the industry.

"Market insights predict that once borders are open, the focus of tourists shall be on closer to home destinations.

"Hence, it is crucial for us to strengthen the cooperation among Asean countries in facilitating the ecosystem of international arrivals.

"It is essential for us to promote a safe reopening of the tourism sector and restore the confidence to travel once again, to facilitate the region's economic recovery, ensuring survivability as well as the industry players' sustainability," she said.

Nancy highlighted several key points for tourism sector revival that should be included under the post-Covid-19 Recovery Plan for Asean tourism, including the beginning of embracing digital technology and innovative solutions to provide reliable and accessible information.

"Common health protocols for travellers' safety and host countries should be one of the key elements in the plan, to attract regional tourism and promote safe destinations.

"The revival plan should also include preparedness and resilience for future crises through tourism, as well as enabling a sustainable and inclusive recovery.

"This will require work across the whole value chain, involving all stakeholders, and a commitment to make tourism products and services more sustainable," she said.

Referring to the Langkawi travel bubble pilot project that kicked off on Sept 16, Nancy said the country is now preparing to open the island as a travel destination for international tourists.

"A total of 38,748 domestic tourist arrivals was recorded since day one of the pilot project, with over RM15.97 million generated.

"From these figures, we targeted around 400,000 domestic tourist arrivals for Langkawi under this pilot project, till December 2021.

"Looking at this success, we are now preparing to open Langkawi for international tourist arrivals soon," she said.

The ALPF is a meeting of minds that enables participants to discuss ideas on how Asean countries could rebuild and support sustainable, resilient growth, with a focus on expanded connectivity and digital transformation while also enhancing the resilience of its regional supply chain.

The forum was attended by over 400 participants from Asean countries, including Cambodia's Minister of Commerce, Pan Sorasak and the United Nations Under-Secretary-General and Economic and Social Commission for Asia and the Pacific (ESCAP) executive secretary Armida Salsiah Alisjahbana.

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