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Beware of the Dangers of “Zero-Cost” Tours: An Op-Ed on Tourism and Scams in Malaysia and Beyond

Guided tours can be a great way to explore new places, learn about their history and culture, and make new friends along the way. However, when it comes to choosing the right tour company or guide, the old saying “you get what you pay for” definitely holds true. Cheap or free tours may seem like a bargain, but they can come with hidden costs and risks that can turn your vacation into a nightmare. In this article, we’ll explore some of the dangers of relying on budget tours and offer tips for finding high-quality, affordable tours that won’t compromise your safety or experience.


Since the beginning of the Covid-19 outbreak in early 2020, the world has seen 761,402,282 confirmed cases and 6,887,000 deaths according to the World Health Organization. As a result of travel restrictions and lockdowns, many legitimate businesses have been greatly impacted, but exploitative activities have also been curtailed. The tourism industry has hit rock bottom, but started to recover in 2022. In Malaysia, for instance, Q1 of 2021 only saw 98,053 tourist arrivals, but after international travel restrictions were lifted in April and Covid-19 cases eased in May, there were 2,034,107 arrivals in Q2, 3,424,121 arrivals in Q3, and 4,514,683 in Q4. Malaysia ended the year with 10,070,964 tourists, compared to only 134,728 in 2021. Thailand, on the other hand, expects 25 to 30 million foreign tourists this year, a much higher number than Malaysia’s target of 15.6 million.

In February 2023, following the opening of the Chinese border without any restrictions, the Thai Ministry of Tourism and Sports discovered that several travel agencies in China were advertising travel packages below operating costs for tours. These packages, technically incorrect, were referred to as “zero-dollar”, “zero-fare”, “zero-fee” or “zero-cost” tours, and were sold at a significant discount. This has raised alarms, as bargain hunters may fall for the deal without realizing that the packages are not actually free. Once they arrive at their destination, tourists will be coaxed into buying from shops that pay commissions to the outbound tour operator, tour leader, inbound tour operator, tourist guide, and bus driver. This can result in tourists being pressured or even insulted if they refuse to buy anything. Zero-cost tours began in Singapore in the 1980s when it provided inbound operators with airport transfers and sightseeing for tour groups without charging outbound operators in China. The company would then recoup its operating costs from shopping commissions alone. In Malaysia, some freelance tourist guides have even paid inbound tour operators to handle tour groups from China.

Before the pandemic began, unsuspecting foreigners were drawn to cheap tours departing from major cities like Beijing. Even event organizers in Malaysia bought these tour packages as lucky draw prizes to attract larger crowds to their events. In one instance, a Malaysian couple won a seven-day and six-night tour to China and happily paid for return flights on a budget airline. Upon arrival, they checked into a five-star hotel and happily signed up for the tour. However, the quality of hotels during the second night and onwards left much to be desired. Not only that, but insults were thrown at them for not buying enough from the shopping stops included in the daily sightseeing tours. On the third day, they could not stomach the tour any longer and gave notice to opt out of the tour. This was when they were shown the agreement they had signed earlier, requiring them to pay the full cost of the seven-day and six-night package for cancellation. The amount was substantial, which left the couple feeling caught between a rock and a hard place. They ultimately decided to continue the tour and purchase much more from the shopping stops rather than pay the large sum as compensation.

As a result, it is important for individuals to be vigilant when it comes to tourism, especially cheap tours overseas. Apart from outright scams where there is no show after payments have been made, it can be risky to bypass local tour operators to look for bargains. Individuals should always remember that if the price seems too good to be true, it probably is. While goods may be sold off cheaply nearing their expiry dates or have gone out of fashion, the same cannot be applied to promissory services that have yet to be delivered. It’s important to always pay others reasonably for their services, just as they would expect others to pay them fairly for their labor or salaries. Anyone who doesn’t treat others equitably and could easily fall victim to scammers.

YS CHAN is a master trainer for Mesra Malaysia and Travel & Tours Enhancement Course, an Asean Tourism Master Trainer, and a transport and training consultant and writer. The views represented in this article are not necessarily representative of Malaysiakini.

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