Malaysia Inbound Tourism Association (Mita) president Uzaidi Udanis, who supported the move, said while there was control on fares for express buses and taxis, there was none for airfares.
Uzaidi related a recent experience in which the airfare for a day trip to Kota Bahru had cost him nearly RM1,000.
Calling this ridiculous, he said it was more expensive to travel to other locations like Bangkok, or even other cities.
“There needs to be some kind of control for airfares, to ensure that airlines do not take advantage of demand and supply.
“If the price becomes uncontrollable, it will hinder the domestic market. Inbound tourists will probably say, they may as well go to Phuket,” he told FMT when contacted.
Tourism and Culture Minister Nazri Aziz had said the proposed capping of seasonal increases in airfares would be good for tourism, but added there should also be a limit on how low the fares should be.
“If you put a cap on how high prices can go, then it’s good for tourism. But the floor price should be capped too,” he said yesterday.
He was commenting on a report by The Malay Mail that the Malaysian Aviation Commission (Mavcom) was considering allowing airlines to increase domestic flight airfares by only 2.5 times the average fares during peak seasons.
Previously, Deputy Transport Minister Ab Aziz Kaprawi had said Mavcom would be tasked with drafting proposals by June for airfares during festive seasons. Aziz had voiced concern that domestic airfares might balloon up to five times during festive seasons.
However, former Malaysia Airlines CEO Abdul Aziz Rahman had cautioned against this, saying the rates were best decided by the market.
Uzaini said capping the prices would also help boost tourism growth domestically, as the aim was to get tourists to spend more time in Malaysia.
“It will definitely make us more competitive. We want tourists to spend more time here. At present, we are known as a stopover hub, a transit destination.
“We do not take full advantage when people come here. We should encourage them to stay in the country longer, and not just transit.”
Uzaini said at the moment, passengers mostly used KLIA and klia2 for connecting flights to other Asean countries.
“If they find out that the domestic fare price is expensive, especially during certain seasons, it will hinder them from going to domestic destinations. That is my concern,” he said.
At the same time, Uzaini said the price of airfares should not be too low to the point that service to customers is compromised.
Meanwhile, Malaysian Association of Tour and Travel Agents (Matta) president KL Tan said the move was a good one, as “astronomically” high fares during peak seasons had placed a heavy burden on the people.
“Matta would like to see any rise in fares to be capped at between 1.5 to 2.0 times (the average fare), as air travel is not a luxury but essential service for travel between the peninsula and Sabah and Sarawak
“More affordable airfares across the South China Sea would be welcome news for those that return to celebrate with their families, relatives and friends. It will also encourage Malaysians to travel within the country and boost domestic tourism,” he said in a statement.
Tan said high domestic fares had driven many Malaysians to overseas destinations, flying on cheaper airfares.
“Airlines should review their pricing strategy during low and high periods so as not to victimise passengers travelling during peak seasons. Airlines have various classes and fares based on their reservations booking designator to maximise revenue.
“Authorities such as Mavcom and the Malaysia Competition Commission (MyCC) should closely monitor and ensure airlines do not form or behave like cartels to drive up fares, especially during peak seasons,” he said.
Tan also welcomed Nazri’s suggestion for a floor price to be introduced, saying that airlines during peak season do not have to charge unreasonably high airfares to cover losses when airfares are lower during non-peak periods.
Nazri: Have floor prices for flights too, not just ceiling fares