Cost of Drink Driving Tourists To Other Places

Cost of drink driving tourists to other places

By K.P.WARAN

One of the main draws of Malaysia is its great food and beverage sector. But the country stands to lose tourists to neighbouring rivals if it does not relook the price structure, especially for alcoholic beverages.

MALAYSIA’S culinary attractions have long been a hot topic of discussion among locals and foreigners alike.

Ask Malaysians what they miss most when they are overseas and they will most likely reply “the food”. Ask foreigners what they enjoy most when they visit and they’ll also probably say: “the food”.

Statistics from Tourism Malaysia show that last year, tourists spent a whopping RM8.77bil on food and beverage, the third highest tourism sector to rake in the ringgit after accommodation and shopping. The F&B sector last year saw a 5.2% growth on the RM8.34bil spent in 2007, thanks largely to the culinary accomplishments of both local and foreign chefs.

Tourism Minister Datuk Dr Ng Yen Yen recently announced that a total of 20 million tourists are targeted to arrive this year, down from 22 million last year. One of her strategies to raise tourism revenue is to make them stay longer and spend more money here, including on food and beverage.

With the slowdown of the global economy and with the expected decrease in overseas visitors, the need to focus on tourists who are willing to spend more money in the country cannot be underscored.

Newly-appointed Tourism Malaysia chairman Datuk Dr Victor Wee Eng Lye is quick to admit that fine dining – involving both local cuisines and international fare – has a lot of potential for growth and the sector has always been one of the priority promotion areas. The former secretary-general of the ministry said activities involving promotion of the food and beverages sector has focused on the diversity of food available in Malaysia with its unique blend of ingredients, spices and tastes brought about by the “melting pot” of different ethnic groups in the country.

“While we aspire to be a major shopping hub, this programme runs hand-in-hand with the promotion of making dining and spa facilities premier attractions for tourists,” he said in an interview.

Wee admitted that one of the major complaints from food outlet operators is that while the price of food is reasonable and competitive in the region, the high prices of alcoholic beverages tend to be a put-off, since fine dining in the Western world is often accompanied by wine, whisky, beer and stout.

“Unfortunately, wine and beer have become a victim of the so-called sin tax here. It is important to see beyond this issue and look at the implications of higher taxes and look at ways to be competitive, especially when our neighbours have much to offer under this category,” he said.

Wee said during budget dialogues and proposals and recommendations submitted to the Treasury prior to a new budget, the issue of not raising taxes for alcoholic beverages is often stressed.

He said that apart from supporting events such as the Malaysian International Gourmet Festival, road shows involving celebrity chefs and food festivals hosted by hotels here, efforts to promote Malaysian food overseas in Britain, Australia, Japan, Hong Kong, Macao, Singapore and China were continuous, with the aim of bringing awareness of Malaysian cuisine and luring tourists here.

Deloitte Consulting Southeast Asia Sdn Bhd, which carried out a study in July last year called the “Economic and Social Impact Assessment for the beer industry in Malaysia” indicated that the excise duty on beer is the highest in Asia and second highest in the world after Norway.

The report also said beer consumption has been on a downward trend over the last 17 years, with consumers switching to drinks that are cheaper and of higher alcohol content.

The report added that surveys carried out in Malaysia among tourists showed that almost 50% of European tourists and at least one third of Asian tourists view beer and stout prices as expensive and concluded that it would be to the mutual interest of the Government and industry to maintain the current level of excise duty on beer and stout.

Guinness Anchor Berhad (GAB) managing director Charles Ireland said that while Malaysia offers exciting tourism products, lovely beaches, nature at its best, warm people and great dining experiences which are about the best in Asia, the high tax on alcoholic beverages has an effect on potential tourists.

He noted that between 1991 and 2006, excise duties on beer and stout have increased by a total of 169%, resulting in a 14% decline of the market.

“Those who have visited the region will come to realise that they can get more reasonably priced food and entertainment elsewhere and they also sub-consciously feel that Malaysia is not interested in Westerners who enjoy a beer after a hot day of sightseeing.”

“The taxes on alcoholic beverages here are so high that Malaysia is about five years ahead of other countries in the region. My suggestion is either we maintain current tax levels until the countries catch up with us or the authorities seriously consider restructuring the tax regime as has been done by some South-East Asian nations,” Ireland said.

Malaysian Association of Hotels vice president Ivo R. Nekvapil also believes that lower taxation on alcoholic beverages would help the F&B sector to be a drawcard for foreign tourists.He said that in order to offer competitive prices for tourists, fine dining outlets and hotels should also re-look their price structure since some of them charge three or four times what is charged by normal restaurants.

He added that in the hotel industry, 60% of the revenue is generated from accommodation, 40% comes from F&B and in some hotels the ratio is 50:50.

“Good food, good service and reasonable pricing can bring more tourists and locals into these eateries and this is crucial in these times of economic slowdown where people are tightening their belts,” he said.

> K.P. Waran, a former journalist, is now a training consultant.

-------------------------------------------------------------------------------------------------As a tour guide, I strongly oppose this opinion that the expensive alcoholic drink is chasing away other tourists to our neighbour country.

Yeah, certainly when the tourists found out that the alcoholic beverages is just as expensive as in Singapore, they accept it. Furthermore, after explaining to them that Malaysia is a Muslim country, they will definitely accept it.

In fact, just like tobacco, everyone knows that Singapore has one of the strictest law against tobacco. In Malaysia, due to our local regulations, the tourists are also not allowed to smoke in a lot of places. Do they complain about this or turn away from us? Certainly not at all. In fact, some of them really admire us and even told me that after visiting Singapore and Malaysia, they quit smoking. We are actually helping the tourists from all these sins!

The tourists come to Malaysia for other reasons : Our shopping paradise, diversity in culture and traditions, our greenery, etc.

There are so many reasons as to why the tourists come to our country. So, the pricey alcoholic beverage is definitely a very minor issue.

As for food, Malaysia is definitely a food paradise due to its multi ethnic background.

But then again it depends on the profile of the tourists. The Asian tourists, generally do not accept other food easily. For example, most of the Indian tourists are vegetarian. The Arabs will even bring their cooking utensils to cook their own meals in the hotel rooms.

Of course, if you ever ask any Malaysians, they will happily boast off what are the good food there in their hometown or where they are staying.