RM677 billion Chinese tourist market at risk if Malaysia keeps ‘tough visa rules’
Malaysia risks losing out on a slice of a US$194 billion (RM677 billion) pie if the Home Ministry maintains its tough stance on tourists from China, warned a tourism and travel association.
The volume of international trips by Chinese travellers is expected to exceed 100 million in 2015, with a projected spending of US$194 billion.
Malaysian Association of Tour and Travel Agents (Matta) president Hamzah Rahmat said next year, Chinese tourists could spend more than all the world’s luxury shoppers combined.
"Many Chinese tourists buy Western or designer goods abroad because import duties and other taxes add up to 60% to their prices in China," Hamzah said in a statement today.
He urged the ministry to stop linking Chinese tourists with vice, and making it difficult for them to visit Malaysia.
The ministry recently revoked issuing visa-on-arrival for China as it deemed it a human-trafficking hot spot, along with India and Iraq.
Home Minister Datuk Seri Ahmad Zahid Hamidi told Parliament in October this was to ensure the facility was not misused by human-trafficking syndicates.
He said although vice in China, like prostitution, were not as rampant as before, the syndicates have scattered to other Asian and European countries.
“If Malaysia waives the visa requirement, we would be inviting these people to continue their activities here," Zahid was quoted by The Star.
He said Chinese authorities understood the decision behind Malaysia’s reluctance to allow visa-free entry.
“When I asked if they were willing to waive the visa requirement for Malaysians, they said no. (Visa-waiver) arrangements must be reciprocal.”
But, Hamzah said while other countries were pulling out all stops to welcome tourists, the home ministry was stuck in a time warp.
"They are treating visitors with suspicion instead of goodwill.
"If vice is the overriding issue, the Home Ministry should impose visa restrictions on Asean members as many women from neighbouring countries are engaged in such activities here."
Hamzah said if vice was such a threat to Malaysia, the ministry should tell police to buck up, instead of blaming tourists.
"There will be no shortage of countries waiting to roll out the red carpet for the Chinese travellers," Hamzah said, adding that Indonesia was waiving visa requirements for Chinese tourists from next year.
Countries that offered waiver schemes for Chinese tourists such as Cambodia, Indonesia, Laos, Vietnam, Thailand and the Philippines have recorded positive growth and arrival numbers.
"Chinese tourists are no longer run-of-the-mill tourists or budget tourists. They are welcomed all over the world as high spending visitors, including Europe."
Hamzah gave statistics, saying in 2005, China was ranked seventh in international tourism expenditure by mainly buying souvenirs.
But, as China emerged as the world's fastest growing economy, travellers began to flex their financial muscle and spending power.
In 2012, Chinese travellers spent a world-record US$102 billion on international tourism, a 40% increase from US$73 billion in 2011, he said.
"For those planning to spend US$10,000 on shopping, paying US$1,000 on the air ticket alone is well worth the trip."
Hamzah said some of Kuala Lumpur's upmarket malls such as Starhill Gallery, Pavilion and The Gardens boasted the same designer brands as Paris and Rome.
"These designer brand-outlets would greatly appeal to Chinese tourists, who flock to Europe in search of such brands."
Malaysia had been badly affected by the loss of Malaysia Airlines flight MH370 on March 8, which had been bound for Beijing.
After the MH370 saga, Chinese tourists had elected to travel to other destinations, a decision which cost Malaysia an estimated RM4 billion in lost tourism revenue.
Adding to that were several kidnapping cases in eastern Sabah by Abu Sayyaf members, including one which involved a Chinese tourist, further denting Malaysia's reputation as a tourist destination. – December 16, 2014.
