By Hanis Hazwani Ahmad & Adilah Azhari

The 2022 Budget presented by the Honourable Minister of Finance shows that the tourism industry has a bright opportunity towards an immediate and holistic recovery phase. Many large companies in the tourism industry were forced to go bankrupt due to the pandemic. Not to mention, companies that run small- and medium-scale businesses were also affected.

Next, many lost their livelihoods when their companies went bankrupt due to their not being able to afford the cost of expenses, including employee salaries, in this pandemic situation.

Budget support

Tourism industry entrepreneurs should take the initiative from the budget support from the government to boost tourism activities and indirectly increase national income. In addition, entrepreneurs should plan a strategy by practicing digitisation to help revive the tourism industry and, in turn, be able to address the health crisis that we have experienced for up to two years.

With the support of this budget, entrepreneurs can restructure their company’s finances more firmly and stably. More innovative ideas can also help industry entrepreneurs to survive in the tourism sector in the long run and achieve sustainability.

Entrepreneurs need to keep a cash reserve or emergency fund to continue to sustain in a pandemic situation and to go through the recovery process phase. Besides that, entrepreneurs should be able to manage the budget support in moderation.

Budget support by the government comes through the PENJANA Tourism Financing, BPMB Rehabilitation Scheme, financing assistance, special assistance, and matching grants to entrepreneurs under MOTAC.

In the budget, the government has allocated RM1.6 billion to spur tourism recovery post-pandemic. Industry players must wisely manage these funds more systematically and prudently. This is to bear the cost of expenses and losses during this pandemic period. It is recommended that entrepreneurs keep a ‘cash reserve’ or ‘emergency fund’ to continue to survive in a pandemic situation and to go through the recovery process phase.

Digital platforms

Naturally, the tourism industry is open to rebranding tourism by using digital platforms according to their respective creativity. The use of websites, digital marketing and sale of travel packages through apps can help increase a company’s profits. However, entrepreneurs must be transparent and honest in marketing on digital platforms. Often there are also cases of fraud by putting wrong information or offering fake packages to make a profit easily and deceive consumers.

The people must also be careful when using the applications. Although there are advantages and disadvantages in digitalisation, digital tourism can continue to be adapted for the sustainability of the country’s tourism industry. Digital tourism can still be further improved in the future.

Mind therapy

In addition, tourism industry entrepreneurs should ensure that tourists adhere to established standard operating procedures (SOPs). Tourism activities cannot only help generate profit but also be a mind therapy for the tourists themselves to relieve the work stress and fatigue caused by the pandemic.

However, entrepreneurs and tourists should not be idle in tourism activities because we have not yet won and helped to curb the spread of the epidemic. With the success of the Langkawi travel bubble, entrepreneurs should take this initiative accordingly as this could affect the tourism industry and their own economy in the future. Evidently, statistics show that the number of tourists to Langkawi exceeded 30,000 and generated more than RM15 million in tourism income.

With the anticipation that Malaysia will reopen its borders to international travel by Jan 1, 2022, a boost of foreign tourist arrivals is expected to spur the tourism recovery.

On the other hand, entrepreneurs should track new market trends and the drivers of demand and commit to building more resilient and inclusive tourism sectors, leveraging renewed interest in sustainability. Resilience comes through focusing on the environment, people and technology to prepare for climate change and crises.

Innovation and collaboration

The road to recovery for tourism and travel will require innovation and collaboration. Although the pandemic is far from over, we must plan to build forward better. This can be engaging across government, private sector, civil society and other partners and preparing for changing business models and governance structures to meet new and different demands. This also includes the move to a greener tourism system.

Hence, communicating actions to rebuild investor and consumer confidence will be important in the short term. In the long term, strengthening sustainability and resilience, and sharing benefits more equitably will also be important.

Together, these approaches can revitalise the tourism sector, harnessing its market-creating power to support economies, create jobs and drive development outcomes that put people and communities first.

-- BERNAMA

Dr Hanis Hazwani Bt Ahmad is a Senior Lecturer at the Faculty of Business and Management Science, Kolej Universiti Islam Perlis (KUIPs), in Kuala Perlis, Perlis.

Dr Adilah Azhari is a Senior Lecturer, Finance Department, at the School of Economics, Finance and Banking, Universiti Utara Malaysia (UUM) in Sintok, Kedah.