August 18, 2022

Traveling In the midst of economic crisis

Everyone in the world know what is happen to economy now. The world financial and economic crisis. As we browse through news paper and online report, many develop countries are moving into a downturn with banks collapsed and stock market fall below value. But I as a normal person live in a developing country – Malaysia, does not really feel the impact. Of course if we ask people in Palestine, Iraq or Kabul they will say every year are the same for them, whether the world economy are booming in profit or bankrupt, they have not seen their country bank notes more than 10 years ago , even Banks have been bombed in their place. Have already use to it, small matter they said.

Now Malaysian government also reducing the fuel price and certain large retail store like Tesco is reducing their prices of goods. As of me, salary will be up every year and with the reducing of the prices of goods and fuel, not much the feeling of economic crisis impact. Of course as long as you maintain your normal expenditure. That’s for a government servant, but for a businessman, maybe the answer will be different.

So how about the tourism industry? Surely traveling will involve money and expenses. Travelers buy flight tickets, pay for hotel room, rent a car and dine. Tourist who spending their money at the place they go with average of stay more than 1 night are quality tourist. When they spend their money everyone that involve in the industry will benefit from it. So can we expect a thrifty tourist that is not sleep in a hotel but bringing a tent everywhere and cooked using a camping stoves?.

Quality tourist that spend a lot usually came from the western country. Because of they work hard in a capitalist nation, they will seek a holiday to spend their hard earn money. But now the stock are in bearish trend with cut in company expenses everywhere. As a result they are not so rich anymore.

So will the European and American market will affect Melaka or Malaysia tourism industry? I think not too much impact because luckily they are not our main market. Refer the table below:


Top ten countries visiting Melaka & Malaysia 2007

Why the rich European and American does not considering Melaka as their first priority when thinking of vacation? This is because when you are rich and have a mountain stockpile of cash, you will think Paris, Caribbean, Rome, Dubai and relax at the open sea with luxurious cruise liner. In other hand, Singaporeans thinks that Malaysia is a country with an affordable price plus their value of buying will be high because of the currency rate. So they will kept continuously coming in to Malaysia for shopping and vacation. For example Malaysia fuel price is like triple cheaper than Singapore, so they will not miss the opportunity to fill their tank in this country.

But for Indonesian, they come to Melaka not because of the affordable price. This is because Malaysian currency is higher than Indonesia. The main objectives for them are to use the facilities and technologies here the facilities here are among the latest but still affordable compared to other South East Asian country like Singapore and Thailand. Most of them will use the Medical facilities. With the ease of communication (Indonesia and Malaysia use the same language) and easy access to Melaka (by Air and Sea), Melaka will be their number one choice unless their government can provide good and affordable facilities in their country. Surprisingly, some of rich Indonesian said that branded item in Malaysia are far more cheaper in Jakarta. I see with my own eye they shop till like there is no tomorrow here on item like shoes and hand bag.

Rationally, when we have lest to spend but still want to enjoy and take a vacation at the end of the year, we will go to a country that our value of buying is high. So Malaysian will consider to travel abroad to country such As Indonesia, Myanmar or Thailand. With Air Asia our famous budget Airlines is cutting their flight tickets due to encourage people using air planes, this will make travel to places like Medan in Indonesia is cheaper than traveling in our own states like Sabah if compared to normal flight rate using Malaysia Airlines System.

Melaka still projected 6.8 million tourist arrival in 2008 despite of the slow economy. But maybe the the rich European people will cut their travel expenses by visiting the 3rd world countries and Malaysia will benefit form it and can surpass the last year 49.6 billion revenue from this industry? We just wait and see.


TOURIST ARRIVAL & REVENUE OF THE TOURISTM INDUSTRY (Malaysia)

In the mean time you can visit this page to know how rich you are compared to the people around the globe. You might find you are not that poor!


Global Rich List, rate your self!…

asmaliana

Hi, I'am Asmaliana, I work at Tourism Melaka. I love my state, Melaka, the world heritage city by UNESCO. Don't Mess With Melaka.

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5 thoughts on “Traveling In the midst of economic crisis

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