GEORGE TOWN – The reimposition of the 6% sales and services tax (SST) should be deferred until December next year while the loan moratorium period should be extended by another six months, the travel industry urged Putrajaya.
These are on the industry’s wishlist for the new year, considering that many service providers and owners continue to struggle against rising inflation and additional business costs incurred by necessary standard operating procedures (SOPs) aimed at curbing the spread of Covid-19.
Malaysia Budget and Business Hotel Association deputy president Sri Ganesh Michiel told The Vibes that the 6% SST causes more harm to the industry even though it is meant to aid the government in revenue collection.
He also suggested that the government raise the income threshold from RM500,000 to RM1.5 million a year, to exclude smaller businesses from imposing SST.
“We need to find ways to lower our operating expenditure, not to add to it. This leaves us no choice but to pass it on to the consumers, who are already suffering from inflationary hikes. Look at the current prices of raw food and essentials.”
He said even though some hotels secured healthy daily occupancy rates, their ability to earn revenue has been hampered by the higher operating costs needed for sanitisation and masking, and some turnabout government policies.
He added that to adhere to SOPs, hotel occupancy has effectively been halved.
The SST is scheduled to be reimposed by next month based on the announcement by the Finance Ministry, but Sri Ganesh said business indicators do not augur well for tourism yet.
Meanwhile, Malaysian Association of Hotels president Datuk N. Subramaniam said his organisation’s wish is for the authorities to listen to the industry’s plight and for efficient anti-Covid-19 policies.
“I think we have been shouting for the past 18 months since the pandemic devastated our industry. Many of our pleas have fallen on deaf ears. It remains to be seen how we can cope if the government does not allow the financial exemptions to continue.”
He said the industry needs to be allowed to hire foreigners and given discounts on utilities, adding that the reopening of the international borders should also be hastened.
He also said that the working class continues to struggle with rising living costs, so the loan moratorium should be extended by another six months to give them space to cope.
Meanwhile, Malaysian Association of Travel and Tour Agents secretary-general Nigel Wong implored the government to be consistent on travel guidelines so industry players do not get confused.
“For example, if airlines and public transportation vehicles are allowed to carry a full load of passengers, why must eateries limit the crowds at their premises?
“Also, the enforcement of SOPs over Covid-19 needs to be consistent and uniform to inject confidence into the markets.
“Our fervent wish, like most people, is for the pandemic to end.”
He added that since the virus is here to stay for now, the government needs to shift its policies to reflect the endemic stage Malaysia is moving into.
There is also a need to enhance the marketing outreach for Malaysian inbound tourism so when the borders are reopened, the country is poised to accept foreign tourists, he added. – The Vibes, December 29, 2021
