Are Our Tourism Promotions In Tandem With Changes In International Travel Part 1

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DURING the 2025 Tourism Malaysia overseas directors meeting at Kuala Lumpur on Sept 30, Tourism, Arts and Culture Minister Datuk Seri Tiong King Sing urged all local tourism industry players to enhance cooperation with international partners to attract more foreign tourists to Malaysia.

However, not all tourism industry players, including travel trade personnel, need to be in contact with foreigners in their home countries.
In fact, less than one percent need to reach out to foreigners before they visit our country, or to cooperate with international partners.
This is because there are more than 3.54 million people in Malaysia employed in the local tourism industry, with 37.9 % in the retail trade, 36.6% in food and beverage serving services, and 10.7% in country-specific tourism services.
The personnel that are more likely to collaborate with international partners are in the travel trade, and these companies are licensed under three main categories in the Tour Operating Business and Travel Agency Business (TOBTAB) regulations by the Ministry of Tourism, Arts and Culture (MOTAC).
Companies licensed under Travel Agency Business are only permitted to be agents or intermediaries between their customers and suppliers such as airlines, hotels and attractions in the country or overseas.
They are not allowed to organise and operate tours, but can be sales agents for domestic, outbound and airline tours.
Companies licensed only for inbound tours are not permitted to organise or sell outbound tours. Likewise, companies licensed only for outbound tours are not authorised to sell or operate inbound/domestic tours.
In recent years, however, new applicants are automatically granted three licences and have to pay for all of them.
Nevertheless, most companies specialise. Hardly any would choose to operate a travel agency only, as passengers could easily book their flights or hotels directly.
Highly-prized big corporate accounts are profitable, but they are well served by long established travel agencies, leaving no chance for new players to secure them.
Many outbound tour operators are after the lucrative Umrah market. For example, during the Umrah season from July 30, 2022 to March 2, 2023, over 300,000 Malaysians performed Umrah.
This was in addition to the Hajj season in June, with the Saudi Arabian government setting a quota of 31,600 pilgrims for Malaysians.
The inbound tour licence is also meant for companies operating tourism vehicles such as tour buses and vans licensed under excursion bus (bas persiaran), and self drive vehicles licensed under hire and drive.
Some tour bus operators may only charter out their tour buses, and may not operate their own domestic or inbound tours.
Decades ago, 3 days and 2 nights (3D/2N) charters to local destinations were popular. But their popularity waned when private car ownership grew substantially and the availability of public transport increased, making it convenient for passengers to travel at their own schedule without having to book group tours well in advance.
Domestic tours and holidays today are largely a do it yourself arrangement. Visitors could either drive their own vehicles, travel in express buses or trains, use e-hailing services or taxis at various destinations, or book their own domestic flights and hotels. All these without going through and paying for the service of intermediaries.
As for inbound tours, the scenario has changed dramatically between the previous and current millenium.
The 1972 PATA Conference held in Kuala Lumpur sparked the official recognition and momentum for the local tourism industry, leading to the creation of the Tourism Development Corporation (TDC) seven months later. 
YS Chan is master trainer for Mesra Malaysia and Travel and Tours Enhancement Course and an Asean Tourism Master Trainer. He is also a tourism and transport business consultant.

The views expressed are solely of the author and do not necessarily reflect those of  MMKtT.
- Focus Malaysia.

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