GEORGE TOWN: Air travel to Penang is holding steady in the face of rising fuel costs and disruptions linked to the Middle East conflict.
However, early signs of strain are showing in the healthcare travel sector.
Industry players said short-haul regional routes remain stable for now while longer haul travel is beginning to tighten.
With close to half a million Indonesians flying into Penang annually for private healthcare, any rise in airfares can affect middle-income patients.
Penang Adventist Hospital chief executive officer Albin Phua said healthcare traveller numbers at the hospital were slightly lower this month.
“The number of healthcare travellers began easing in February and could be due to Chinese New Year, Thaipusam, Ramadan and Hari Raya.
“We will have a clearer indication in the next one to two weeks on whether this is related to fuel costs,” he said.
About 90% of the not-for-profit hospital’s healthcare travellers are Indonesians, he said, adding among others are from China, Singapore and the United States.
Tourism Malaysia deputy chairman Datuk Yeoh Soon Hin said the broader outlook for tourism would be affected if the conflict continued.
“There will be a drop in tourist arrivals. You can’t say it won’t affect Penang,” he said, noting reduced flight frequencies on some routes from the Middle East.
Yeoh said travellers from US and Canada could be affected as many relied on Middle East transit hubs.
Despite this, he said Penang should focus on regional markets in South-East Asia and Asia-Pacific, where travel remained more resilient.
He said airlines have reduced some services, resulting in fewer visitors from Qatar, Oman and United Arab Emirates, adding that there have been no reports of stranded passengers.
Penang tourism committee chairman Wong Hon Wai said a new direct flight between Qingdao and Penang would begin on March 31, improving access to northern China.
He said the route would expand Penang’s reach into a new catchment in Shandong province and beyond, supporting tourism and business travel.
“Increasing fuel prices can result in fewer business and leisure visitors from the Middle East and Europe to Penang.
“Nonetheless, this shortfall can be offset by higher arrivals from China, India and South-East Asia,” Wong added.
