How much is tour guiding worth?

The following facts and figures shows that demand for tourist guides in Sabah is at all time high.

The 25.72 million tourist arrival in 2013 has generated RM65.44 billion (receipts) revenue to Malaysian economy. This figure was slighted more than the previous year. In 2012, Sabah received 2,875,761 visitors of which 1,933,996 were Malaysian. More than forty three percentage of 941,765 international visitors to Sabah had their travel package arranged by tour operators while the others were free independent traveller (FIT).

Out of 23.65 million tourists arrival to Malaysia in 2009 only 14.5% (or 2, 246,068 ) visited Sabah as compared 57% to KL-Selangor at the top, followed by 37% to Penang, 19% to Malacca, 13% to Pahang and 12% to Sarawak. Again, the trend was the same; Sabah received more Malaysian (1, 683,924) than international visitors (562,144). Sabah was also receiving only 6% of domestic visitors as compared to 13% to KL, 11% to Sarawak, 9% to Johor and 8% to Pahang.

What interesting is this- only 21.3% of visitors to Malaysia in 2009 have a travel arrangement via tour package (i.e. hired a tour guides) while the rest were FIT.

Were higher demand translated into a higher wages for the existing licensed tour guides? Most probably not, licensed tour guide in Sabah works longer hours than ever. The tourist expenditure for Malaysia in 2009 was calculated RM 53,367.7 million in which 13.7 % was on shopping, 11.8% on organized tour (or RM 2,271 million), 7% on each accommodation, entertainment and miscellaneous and the rest was on F&B, local transportation and domestic airfares.

How much of that tourist expenditure on organized tour goes to creating new jobs? How much of it goes the existing tour guides? The annual monetary worth of tour guiding can be estimated by simply adding all the payrolls (or mean income) multiply with 12 months. At the back of the envelope calculation will look like the following; 1500 tour guides (700 active members of STGA plus members of another trade union and unlicensed tour guides ) X RM1, 500 X 12 months = RM27, 000, 000 .

The total amount is not substantial but why? There are two sides of this story. Most newly created jobs are replacement or young recruits. The ugly side is the entry of unlicensed tour operators cum tour guides. The bigger pie of RM 2.271 million obviously did not trickle down to most licensed tour guides.

With imperfect enforcement, low barriers of entry and exit and further liberation, tourist expenditure is spread thin among unlicensed tour guides. The licensed tour guides who are members of trade union like STGA are actually at disadvantage position vis a vis cut throat competition not of their own making. It is not that there was no wage increase at the individual level, it is just that the inflation had reduced it purchasing power.

The problems facing tour guiding profession today and the challenges confronting future generation of people who will make this unique occupational choice as their career is not a reason for despair.

Here is why; despite working longer hours and being underpaid (in cash) licensed tour guides are extremely happy people with surprisingly high level of job satisfaction. Most tour guides work beyond and above the call of duty, in the time of emergency they are known to be very altruistic (or heroic) towards the guests. The incentive for tour guiding is beyond monetary rewards.

How much is this warm glow or feel good effects worth? I leave it to you to put a price tag!

- James M. Alin

Presented at the Sabah Tourist Guides Association Meeting Dinner, 30 March 2014, Grand Port View Seafood Restaurant Kota Kinabalu Sabah. The article is dedicated to Mr. Daniel Doughty, the past president of STGA, for his undivided dedication to STGA struggles.