Online travel agencies have been urged to consider lowering their commissions to enable hotels to sell their rooms at lower rates in the wake of the Covid-19 epidemic.

Malaysian Association of Hotels (MAH) Kedah-Perlis chapter chairman Eugene Dass said more competitive rates could help encourage Malaysians to travel.

He said most online travel agencies’ clients are hotels.

Dass was responding to Langkawi Business Association deputy president Datuk Issac Alexander’s call to airlines and hotels to lower fares and room rates to bargain levels to help boost domestic tourism.

He said this was necessary given that inbound tourism has almost ground to a halt.

Airlines are reported to have asked employees to go on leave and perks and fringe benefits have been removed to help carriers cope with anticipated losses from the epidemic’s impact.

Hotels are now also urging their staff to clear their leave.

The Asian Development Bank expects the Malaysian tourism industry to incur up to RM5.4 billion in losses as a result of the epidemic. That accounts for 0.36% of the gross domestic product.

Dass said hotels are already feeling the impact from the growth of the homestay segment of the tourism industry and the emergence of Airbnb’s online shared accommodation services.

Alexander said lowering airfares, room rates and entrance fees to amusement parks are the “right tonic to draw Malaysian tourists”.

He said it is easier to take short holidays within the country so travel trade operators must offer bargains to boost domestic tourism.

On another matter, Alexander urged Tourism, Arts and Culture Minister Nancy Shukri to look beyond just addressing the impact of the Covid-19 epidemic but to deliver a long-term plan for the industry.

“Tourism was already reeling before Covid-19 came. Travel trade operators and medium enterprises are struggling.”

He said the private sector will provide services for tourists but the government must do the marketing to woo visitors from abroad.

He said Tourism Malaysia should look to new markets such as Russia, Eastern Europe, New Zealand, the Americas and Asean