The Malaysian Ringgit (MYR) has risen to RM4.18 against the US dollars, as of 7 October 2024, making it one of the best performing currencies in the world in 2024. What a difference a few months has made, as back in February 2024, the ringgit was actually the worst performing currency, after the Japanese yen (JPY).
The appreciation of the ringgit has come on the back of the first rate cut in the US, with more cuts imminent. And this has provided a much needed boost for cash inflows into the Malaysian markets.
With the strengthening ringgit, travel overseas may be much more affordable and attractive as Malaysians can enjoy a better bang for our Ringgits.
Read Also: Guide To Multi-Currency Accounts And Wallets In Malaysia
How Much Does It Cost To Travel Overseas Vs Enjoy Local Tourism
One of the main things we consider when deciding to travel overseas is the currency exchange. If the Ringgit strengthens against a foreign currency, it becomes cheaper for us to travel to that country. Instead, if we consider local tourism destinations, foreign currency exchange does not really matter.
Considering the Malaysian Ringgit has been performing poorly for some time, many of us may have been put off to overseas travel, and instead choose to enjoy local sights and treats – where we can stretch our Ringgit the most.
For example, a Malaysian couple planning a 3D2N vacation in Penang may choose to stay at an international hotel chain. The Penang Marriott Hotel will cost them RM767 per night. According to Numbeo, the recommended minimum daily budget for each of their meals is RM24.49 in Penang.
Assuming that the couple drives from KL to Penang, Rome2Rio estimates that they will need to spend RM62 to RM89 on fuel. While this is not inclusive of toll fees, it can be a relatively affordable yet luxurious getaway for the couple.
Estimated Expenses In Penang
| Items | Price For 2 Persons |
| Hotel | RM1,534.00 |
| Food | RM146.94 |
| Getting there | RM178.00 |
| Total | RM1,858.94 |
If the same couple wants to travel overseas, they can now enjoy the outperformance of the Ringgit compared to regional countries including the Vietnamese Dong. Vietnam is an increasingly popular destination among Malaysian holidaymakers due to its rich culture and scenic natural attractions.
The ringgit appreciated 9% against the Vietnamese Dong year-on-year, with an exchange rate of MYR1:VND5,869.77 (as of 7 October 2024).
In this example, the Malaysian couple travels to Ho Chi Minh, Vietnam for their holiday instead. One night at the JW Marriott Hotel and Suites Saigon will cost them 4,410,000VND. According to Numbeo, a restaurant meal in Vietnam costs 50,000VND per person. Assuming that a person has two meals a day, the daily food expenses would be 100,000VND per person.
A roundtrip flight from KL to Ho Chi Minh will set them back around RM200 per person on low-cost carrier AirAsia.
Estimate Expenses In Ho Chi Minh
| Items | Price For 2 Persons |
| Hotel | 8,820,000VND (RM1,502.61) |
| Food | 600,000VND (RM102.21) |
| Getting there | RM400 |
| Total | RM2,004.82 |
The cost of a trip overseas to Vietnam for two persons will start from RM2,000, which is slightly more expensive than a local trip to Penang at around RM1,800. However, as you can see, accommodation and food expenses in Ho Chi Minh, which they spend in Vietnamese Dong, can be cheaper compared to in Penang.
While the overseas trip to Vietnam is only slightly more expensive on paper, travellers may feel the urge to spend more on sightseeing and experiences as they may not see themselves going back to the overseas destination frequently.
Another favoured holiday destination among Malaysians is Thailand. The Ringgit had risen 5.2% against the Thai Baht year-on-year. The exchange rate is now MYR1:THB7.85.
If the Malaysian couple decides to travel to Bangkok, Thailand for a 3D2N trip and stay at the Bangkok Marriott Hotel, it would cost them 5,978THB per night. Numbeo states that a restaurant meal in Thailand costs around 100THB. Assuming that they have two restaurant meals a day, the daily food expenses would be around 200THB per person.
Budget carrier AirAsia charges a roundtrip ticket to Bangkok for around RM300 per person.
Estimate Expenses In Bangkok
| Items | Price For 2 Persons |
| Hotel | 11,956THB (RM1,523.06) |
| Food | 1,200THB (RM152.86) |
| Getting there | RM600 |
| Total | RM2,275.92 |
The overall cost of travelling abroad to Bangkok is again higher than a local trip in Penang. However, the accommodation costs in Bangkok, after conversion can be slightly cheaper than in Penang.
Again, travelling to Bangkok may lead tourists to spending even more money compared to local tourism, but they can rest assured knowing that they are getting a favourable exchange rate.
Should You Travel Overseas?
The overall cost of planning a holiday overseas is higher than a local destination, mainly due to travel expenses. With domestic trips, Malaysians can easily drive and access popular tourist destinations. When it comes to travelling overseas, they need to splurge on flight tickets.
As the ringgit appreciates, Malaysians who travel to countries with a weaker currency, can save on certain expenses like the costs of hotel and food. They can channel this savings to spend more on sightseeing and experiences in a foreign country – which can immerse them in a new culture and offer a thrilling holiday.
Read Also: How Has The Malaysian Ringgit Performed Against Major Currencies In 2024?
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