Ringgit depreciation makes Malaysia a more competitive tourist spot
Astro Awani
January 7, 2015 18:23 MYT
January 7, 2015 18:23 MYT
Malaysia's competitiveness as a tourist destination to foreigners will be enhanced with the current downtrend of the Ringgit against the US dollar. - File Photo
Malaysia’s competitiveness as a tourist destination to foreigners will be enhanced with the current downtrend of the Ringgit against the US dollar.
The Ringgit has depreciated some 11 per cent against the greenback since August and this would provide travelers a huge incentive to come to Malaysia.
According to the President of Malaysian Association of Tour & Travel Agents (MATTA), Hamzah Rahmat, the attraction for tourists from China at present depends on the approval of the visa exemption for them. MATTA lauds the suggestion for the visa exemption.
“Yuan is stronger compared to ringgit and this would give Chinese citizens higher purchasing power," said Hamzah.
The temporary visa exemption has been adopted by Indonesia.
“I feel that the Parliament should consider this suggestion now because Yuan is much stronger than Ringgit,” added Hamzah.
However, he said local tourism agencies who offer destinations abroad are expected to face tough times as the value of ringgit weakens.
He said most tourist operators would have to increase the prices of their holiday packages to create a buffer if the Ringgit continues to slide.