Published on : Wednesday, August 19, 2015
With the present fate of the ringgit performing its worst compared to other Asian currency at a 8.2 per cent decline against the US Dollar, Malaysia, Minister of Tourism and Culture, YB Dato’ Seri Mohamed Nazri Bin Abdul Aziz, feels that the currency is reaping benefits from the domestic and international tourism sectors despite its falling value.
He gave a novel explanation on how the tourism sector is gaining from the poor performance of the currency, when tourists come to Malaysia, they consider Malaysia a cheap destination but they cannot pay in euros. They have to buy ringgit and the demand is created. So the situation is not all that bad as it seems and there is a silver lining even though the country is witnessing an economic deluge, he added.
Tourism is a key contributor to Malaysia’s economy and one of the largest sources of foreign exchange income for the nation. For tourists on the streets, the weak ringgit is boosting their spending power he opined.
Now ringgit is 4.5 for one euro, it was beneath 4 a couple of months ago, tourists are enjoying the slump and are spending more. They are beginning to enjoy their stay in Malaysia.
Travel agents of Malaysia, Malaysian Association of Tour and Travel Agents (MATTA) are at one with the minister’s opinion. The industry is in fact benefitting from the declining currency. However the agents also felt that there could be a risk on the country’s local tourism industry as they cannot afford to travel abroad.
The President of MATTA, Hamzah Rahmat, said tourism is a two way traffic and if there is no outbound there will be no inbound as the aviation industry is dependent on both sided traffic. He is also skeptical and feels that if the situation is not handled with caution then the declining ringgit could also drive away tourists. He also blamed excessive political speculation as being a reason for the declining ringgit. He however dismissed allegations of money laundering which is being held as one of the major reason for the drop in currency value.
Tags: malaysia, Minister of Tourism and Culture, US Dollar, YB Dato’ Seri Mohamed Nazri Bin Abdul Aziz
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