02/05/2026

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SATURDAY | MAY 2, 2026

Travel demand holds despite airspace closures in West Asia

Ű BY JOHN GILBERT sunbiz@thesundaily.com

PETALING Malaysia’s tourism players are only now beginning to feel the knock-on effects of West Asia’s airspace closures, with May shaping up to be the first clear test after a relatively steady period in March and April. While hotels and tour operators report softer pickup and some cancellations tied to the West Asia conflict, the broader picture suggests travellers are delaying plans rather than abandoning them altogether, keeping medium term demand intact. Further, the impacts of airspace closures and flight suspensions in the region indicated that most hospitality operators are facing a slower month-on-month pickup. “The effect was not immediate. March occupancy held up for us, with no noticeable decline linked to the airspace closures in West Asia. The real impact is from May onwards,” Park Royal Langkawi general manager Au Yong Hin Yoong told SunBiz . He said the current softer pace has placed the hotel slightly below last year’s performance, which the hotel sees as having clearer move ment in the guest mix. “March and April recorded some cancellations with guests citing the conflict as the reason. We noted a reduction in arrivals from both the Middle East and certain European connecting markets.” When asked about rising fuel and energy costs due to oil price spikes and cost-cutting measures in operations to protect margins, Au Yong said Park Royal Langkawi has not made any major opera tional changes at this stage. “Our priority remains to uphold service quality and ensure guest satisfaction is never compromised. What we are doing is reinforcing cost discipline – tightening ex pense management, reviewing non-essential spending and pre paring a structured austerity framework should the situation JAYA:

o Tourism players say broader picture suggests travellers are delaying plans rather than abandoning them altogether, keeping medium term outlook intact

volume of cancellations in March and April, primarily among clients travelling on Middle Eastern carriers. He said rebooking proved chal lenging due to severely limited availability and significantly ele vated fares on alternative carriers such as Malaysia Airlines, Singa pore Airlines, KLM, British Air ways and Turkish Airlines. “Despite this, the majority of our clients were fortunately already ticketed on unaffected airlines and proceeded with their trips as planned. Looking ahead, demand remains healthy for our high season (July–September) and the fourth quarter, and we are seeing stronger-than-usual for ward bookings for next year – a clear signal that travellers are deferring rather than cancelling, which gives us confidence in the medium-term recovery,” he added. Emir said at the current stage, the company has not found it necessary to reallocate resources, as forward demand remains robust enough to sustain normal opera tions across all teams. “On the cost side, we ack nowledge that supplier rate increases driven by fuel surcharges are justified under current market conditions. Our priority is to absorb or minimise these in

persist. “Our approach focuses on smarter resource allocation and operational efficiency, particularly in areas such as payroll, energy usage, and variable expenses. This allows us to protect margins responsibly while maintaining the high standards our guests expect,” Au Yong said. Elaborating on contingency measures to counter prolonged disruptions, he said Park Royal Langkawi’s contingency planning focuses on strengthening demand in the Asia-Pacific, the domestic market and the Commonwealth of Independent States region. “Rather than relying solely on rate reductions, we are prioritising value added packages that elevate the overall stay experience and deliver stronger value for money. In parallel, we are adopting a more flexible pricing strategy for MICE groups to stay competitive and responsive to shifting corporate travel budgets. “This balanced approach enables us to stimulate both leisure and group demand while main-taining rate integrity,” Au Yong said. Tour operator Asian Trails Malaysia and Singapore managing director Emir Cherif said the company experienced a notable

Au Yong: The real impact will come from May onwards. creases wherever possible to protect our destination’s price competitiveness. “That said, we have introduced a fuel surcharge specifically for transportation services, applicable to new bookings only and strictly temporary – it will be lifted as soon as fuel prices normalise.” Further, Emir said India re mains a key focus market and represents a significant share of the company’s business. However, he said it is also a highly price-sensitive segment, and the sharp rise in airfares has dampened short-term conversion, making it more challenging. “Looking at mid-term booking windows, airfares have only mar ginally increased. Beyond India, our strategy centres on deepening

Emir: Demand remains healthy for the high season from July to September. engagement with our existing core markets, with an emphasis on securing future-dated business. “While the near-term pipeline from affected corridors remains under pressure, the volume of deferred bookings suggests that underlying demand is intact and will convert once pricing stabilises,” Emir said. For now, operators are holding their ground – tightening costs, refining pricing strategies and leaning on regional markets to cushion the dip. The near term may remain uneven as flight disruptions and higher fares weigh on sentiment, but industry players say forward bookings and deferred travel plans point to a recovery once conditions stabilise.

Digitalisation, automation of MSMEs a key focus area of SME Corp’s Business Strategic Plan

Malaysian firms told to boost presence in Algeria HYDERABAD: Malaysia’s expertise in food and agriculture aligns with Algeria’s needs, but com panies are missing out on opportunities in the key North African market, according to the Malaysian ambassador to Algeria. Datuk Rizany Irwan Muhamad Mazlan said this is because Malaysian firms remain focused on narrow commodities and have yet to fully grasp the potential of Algeria’s expanding food industry, as evident in their low-key participation at the Djazagro international agrofood trade fair in Algiers recently. “Malaysian companies should offer inte grated food solutions, combining packaging technology, halal-certified additives, and automated processing machinery to compete with European companies,” he told Bernama. Malaysia’s presence at Djazagro was limited to the Malaysian Palm Oil Council and four palm oil companies. The trade fair attracted 700 exhibitors from 28 countries, with foreign companies accounting for 73%, the diplomat said. – Bernama

JOHOR BAHRU: Digitalisation and automation of micro, small and medium enterprises have

additional expense rather than a strategic investment, especially when the return on

investment cannot be seen in the short term,” he told Bernama recently. In addition, the lack of expertise is also a critical challenge, as there is a knowledge and digital skills gap among the workforce. According to him, without sufficient skills, MSMEs find it difficult to implement technology-based projects such as information and communications technology, data analysis, and digital marketing, and

been identified as one of the five key focus areas in the Business Strategic Plan 2022-2030 to accelerate the adoption of digital technology and improve productivity and operational efficiency. SME Corporation Malaysia (SME Corp) CEO Rizal Nainy ( pic ) said the initiative is important given that MSMEs still face major challenges in digitalisation efforts, specifically involving a combination of cost constraints and a lack of expertise among industry players.

computer usage reaching 97.6%, internet usage (97.3%) and website usage at 79% in 2022. In terms of e-commerce, Rizal said a total of 4,460 MSMEs in the state carried out transactions in 2022, compared to 3,212 in 2015. E-commerce revenue amounted to RM20.8 billion in 2022, with an average annual growth of 10.1%, reflecting increased awareness of the importance of digitalisation among MSMEs, he said. – Bernama

also face difficulties in obtaining expert manpower compared to larger companies. He said that in Johor, the level of MSME digitalisation shows positive development based on the 2023 Economic Census by the Department of Statistics Malaysia, with

He said cost is one of the biggest barriers, as the initial investment required for digitalisation is considered high and beyond the means of some MSMEs. “MSMEs tend to view digitalisation as an