Wednesday, June 11, 2008

Malaysian trade fear sky-high prices will dampen China market

INBOUND agents handling China worry they may lose business to neighbouring countries during the July and August super peak season.

They are anxiously waiting to hear from their counterparts in China whether they will accept the proposed RMB200 (US$29) increase in tour packages, or send their customers to other countries that can offer better rates.

The increase is to be implemented in two stages, RMB100 in mid-June and another RMB100 in mid-July. It comes in the wake of a sudden fuel price increase on June 5 (TTG Daily News June 9).

The Kuala Lumpur Tourist Guides Association is negotiating with the Malaysian Inbound Tourism Association (MITA) and the Malaysian Chinese Tourism Association (MCTA) to raise guide fees for China from RM150 (US$46) per day to RM200, beginning July.

MITA division exco member for China, Mr Bernard Low, said even with the existing rate, Malaysia was more expensive compared to Thailand and Indonesia. He said a four-night/five-day package with three- to four-star accommodation in Langkawi cost about RMB4,500, compared to less than RMB4,000 in Bali or Phuket.

Source : TTG
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