PETALING JAYA: Movement restrictions, sky-high airfares and quarantine requirements have literally brought tour and travel businesses down with a hard landing.
Even as travel agencies struggle to keep from going under, the future looks bleak while Covid-19 continues to spread uncontrollably across many parts of the world.
While the situation has been a boon for domestic tourism as Malaysians opt for vacations at local tourist spots, tour agencies dealing mostly with overseas travel are reporting losses in the millions.
The extension of the recovery movement control order to Dec 31 has made it worse, according to industry players.
Leon Choy, who owns EU Asia Travel and Tours, said he has already lost RM2 million to RM3 million since borders were closed in March.
“I’m trying to survive on my reserves until the borders reopen,” he told theSun yesterday.
“At this point, the situation looks dire given that there is no standard operating procedures among countries.”
Some countries require quarantine while others do not.
Choy now spends the bulk of his reserves on refunds to customers for cancelled trips as well as to pay the salaries of his staff, office rental and other essentials.
He said the situation has been made more difficult by the refusal of selected airlines to give refunds.
“Instead, they offer credit that can be used to pay for flights in future.”
Choy said many customers who have made enquiries about travelling abroad have also been put off by the exorbitant costs.
“The airfare to China has risen to RM7,000 on business class and on some days, it has even touched RM13,000,” he said.
“Over and above that, the visa costs RM1,000 and then there is the RM200 a day you have to spend on quarantine fees.”
A 14-day quarantine in China can cost anything from RM1,400 to RM4,000.
Jess Tan, a ticketing manager at Oriental Escape Travel, said her company has suffered 80% to 90% losses since March.
She cited the high costs and inconvenience as factors that have turned her customers away.
“I had a customer who wanted to travel to China. He had to apply for a permit from the Immigration Department and it took a month to get the approval.”
She said he was also charged four times the normal fare, which came up to RM12,000.
Tour agencies only handle flight arrangements for travellers. The customer will have to apply for a permit to travel out of the country and arrange for Covid-19 screening on his own.
Another tour operator under a prominent conglomerate that handles travel to the United Kingdom for students said the British authorities do not require incoming travellers to undergo quarantine.
However, fluctuating fares have led to a decline in travellers.
Malaysians must now have a valid reason to travel abroad, and prior approval has to be obtained from the Immigration Department.
Among those who are allowed to travel are those with job offers, those who need to attend to business matters and those accompanying their children who are going back for studies.
Diplomats and their dependents, students who have to return to their respective varsities to resume their studies or to take exams, as well as long-term social visit pass holders are also allowed to travel out of the country.
