New approaches needed for Malaysia's changing tourism market

New approaches needed for Malaysia's changing tourism market

The number of Malaysian tourists visiting Thailand is down sharply this year, in line with the overall international decline in response to the political unrest and subsequent coup in the first half of this year.

The markets of Hat Yai still attract many Malaysian visitors but the TAT would like them to start exploring more of the country.

While Thailand is confident it can win back Malaysians, who still see the country as their first choice for a holiday, it needs to do more to make the country more appealing to a wider spectrum of Malaysian travellers, especially Muslims.

Malaysian arrivals to Thailand declined 1.4% in September from the same month a year ago, after plunging 34.8% in August, according to the Department of Tourism. For the first nine months of the year, Malaysian arrivals were down 19.3%, compared with a 10.3% drop in all international visitors. However, the small decline from Malaysia in September has given authorities hope that the worst is over.

“Last year was the first year that Malaysian international tourist arrivals to Thailand hit 3 million, an increase of 19% from the previous year,” said Suwat Kumwong, director of the Kuala Lumpur office of the Tourism Authority of Thailand (TAT). “The total has increased steadily in recent years and last year, Malaysia took second place after China.”

Tourism receipts from Malaysia last year were 70 billion baht compared with 188.9 billion baht from China, 57.7 billion baht from Japan, and 49.7 billion from South Korea.

Chinese tourist arrivals to Thailand last year totalled 4.63 million, followed by 3.04 million from Malaysia, 1.75 million from Russia, 1.54 million from Japan and 1.3 million from South Korea. On the nine months to September this year, arrivals from China were down 17.4%, Japan 20.4% and Korea 14.6%, while Russian arrivals rose 3.2%.

Despite the two Malaysian Airlines tragedies that have discouraged some people from travelling, and the protracted insurgency in southern Thailand, Thailand remains the number one destination for Malaysians, followed by China, Singapore, South Korea, Japan and Europe, according to Mr Suwat.

“They see Thailand as value for their money,” he said. “The cost of living in Malaysia is higher than Thailand so it’s better to come here. They will get higher-quality products at a very cheap price and can take part in activities that their country doesn’t have.”

Malaysian see Thailand as an affordable leisure destination, similar to Indonesia, Vietnam and Laos, said Simon Saw, the chairman of the Malaysian Chinese Tourism Association (MCTA).

“The political situation has already picked up. We tell customers that Bangkok is safe. Also, airfares to Thailand are very reasonable,” he said.

The favourite destinations for Malaysians with a high number of repeat visitors are Hat Yai, Krabi, Phuket and Koh Samui, said Mr Saw, who hopes to increase options for tourists such as fly-and-cruise packages.

The TAT in Malaysia has been trying to promote Thailand beyond single destinations such as Bangkok, Phuket or Krabi, focusing on larger areas and nearby provinces so that tourists would come back for second or third visits, said Mr Suwat.

“Last year, we focused on the value for money aspect of coming to Thailand,” he said. “This year, we’re focusing on enjoyment and activities — more fun and more shopping in Thailand.”

The change in focus also reflects the change in the profile of Malaysian tourists, whose numbers have expanded along with the growth of their country’s economy.

“In the past, most Malaysian tourists were men but now the proportion of men and women is almost the same,” said Mr Suwat. “The TAT in Malaysia is trying to change the image of the Malaysian tourist as ‘a man who comes to Hat Yai’ to attract the newer generation who have more potential to travel.”

MEDICAL TOURISM

Thailand holds strong appeal for Malaysians because of its proximity, affordability, and the wide range of activities offered both for business, leisure and medical purposes, according to Mr Suwat.

“The trend now is plastic surgery tourism,” he said. “There are more certified plastic surgeons in Thailand than in South Korea and we need to promote that. We need to build trust and confidence in Thai doctors, but of course this will take time.”

Malaysians of Chinese descent account for 60-70% of all Malaysian visitors to Thailand, followed by Malays and those of Indian descent.

The TAT in Malaysia is looking to attract more Muslim tourists, as most Malaysian visitors in the past were non-Muslims. “In the past, Muslims did not usually take trips abroad but the newer generation is starting to be interested and we are trying to boost this demand,” said Mr Suwat.

One possible obstacle is uneven availability of halal food in Thailand, as halal restaurants have to be properly certified. “When we take Muslims to Thailand, sometimes we have to take them to seafood places to avoid the problem,” he said.

Krabi is expected to draw more Malaysians now that the budget carrier Firefly, a unit of Malaysia Airlines, has begun offering direct flights from Penang.

“We’re always looking at new destinations and Krabi is a very exciting one,” said Ignatius Ong, the chief executive of Firefly. “Krabi has only come into Malaysians’ minds in the past two or three years. Before that, they only knew about Phuket and Pattaya. Right now, Krabi is a gem.”

Mr Suwat said direct flights from Malaysia were now available to seven destination cities in Thailand and he expects airlines to increase frequencies as the number of tourists rises.

Statistics from the government of Malaysia on passengers travelling to and from Krabi indicate it is a very promising destination, said Mr Ong.

“Everybody likes Thailand. The food is good and you have all the various family activities here and I think that’s what appeals to the people,” he said.

“We expect that within this year, Thailand will receive 3 million tourists from Malaysia, just as in 2013 and we hope that within three to five years, the market will continue to expand along with the growth of the Malaysian economy,” said Mr Suwat.

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