A Penang-based tourism interest group said this after a theme park operator claimed that the industry was “highly corrupt”.

Association of Tourism Attractions Penang chairman Ch’ng Huck Theng said it was not right to call the giving of commissions as “corruption” as this practice was not illegal.

He said giving out commissions or other incentives was at the discretion of the respective tourism-related businesses.

“Commissions for certain tour-related industry sectors has been around for so long that it has become a norm … there are no laws to forbid these practices.

“Incentives to third parties related to the tourism industry, including licensed tour guides, tour agents, online agents and drivers, are common and legal practice worldwide.

“We in the association are also trying to find a solution by discussing with the government, but we have yet to find one that can appease all parties.

“If this practice is termed illegal by law, then it becomes a different story,” Ch’ng told FMT.

Sim Leisure Group CEO Sim Choo Keng told a forum last week that his Penang theme park was boycotted for not supporting the incentive culture, which he claimed was rife in the region.

Sim said this forced him to relocate to Dubai, where he felt “the best” companies gathered and competed based on merit.

“Some of them ask for a 10-20% cut from entrance fees.

“I got to know that in the George Town area, some of these tour organisers and taxi operators are getting a 40-60% cut,” he was reported as saying.

Malaysian Association of Hotels Penang chapter chairman Khoo Boo Lim said calling these incentives “kickbacks” was far-fetched as it was not illegal to give incentives to those who brought business.

He said even if these incentives were made illegal, the practice would continue as operators would find other ways to funnel these incentives.

“People can complain about this all they want but it is not easy to change this practice, regretfully.

“Although this does not concern hotels, the incentives are mostly given by tourist attractions such as retail outlets.

Meanwhile, Penang Tourist Guides Association president Chin Poh Chin said Sim’s comment was very unfair to the state’s tourism industry.

She said incentives play an important role in the tourism industry’s success. She said it may be in the form of bulk discounts when tour agents brought in large numbers of people.

“Ask yourself, even if you were to take a group or your family, you will surely ask at the counter: ‘Do you give any discounts for my group of 30 persons or my family of eight?’ That’s natural, isn’t it?

“And remember, tourism is a service industry. If the products or services are not up to a par, even by giving high incentives, the industry itself will not support it,” Chin said.

‘Referral culture’ rife among attractions

A Penang tourism industry insider, said incentives, tips or commissions are commonplace here.

The insider said drivers, tour guides, trishaw peddlers, taxi drivers and others who refer tourists to businesses get a “cut” for every visit.

“From nutmeg plantations to museums, the commissions given to tour guides are common.

“At one of many museums in the state, some even make RM10 from every ticket purchased.

“The only way to tell is the ticket price you are paying for the museum. If it is very high, it is likely that a quarter of it goes for referrals.

“But that is just the popular ones. Look at the cheaper ones, you can tell how much goes to referral fees or discounts,” the source said.

George Town cultural heritage specialist guide Joann Khaw said her customers were cultural tourists who were interested in living culture and had no interest in either alternative museums or tourists traps.

She said her customers usually chose to support traditional traders.

“Most of my tourists are interested in traditional traders so in these places the tourists are paying the same price as locals.

“When I bring them to buy something, for example, sarongs, my guests will pay the usual price, but because of my rapport with the shop owners or workers, they give a discount to my guests.

Theme park builder rues ‘corrupt’ tourism, attractions industry