LANGKAWI – The present aid extended by the federal government to the travel trade community is inadequate, simply because it does not help them sustain their business models.
Insiders confided that majority of them plan to close soon rather than continue to incur losses by operating with no customers and no clarity in future economic policies.
They want “stimulants” to nurse the ailing industry, which reportedly employs up to 3.56 million workers in 2019, back to health.
It is apparently also the biggest employment sector as it requires staff with interpersonal skills – not an easily automated feature – although the digital push by budget carrier AirAsia is one exception to the rule.
Travel insiders also said that, even if interstate travel is allowed once again and the wage subsidies continue, they would still opt to close as their cash flow has dried up and demand has nosedived to record lows.
It is not just the movement control order (MCO) restrictions to blame, but the lack of empathy from financiers, utility companies or the local government, who insist on debt settlement in the midst of the biggest financial crunch debtors have faced.
The community spoke to The Vibes ahead of an online meeting with Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz later this week.
They will propose, among others, for a blanket loan moratorium to be reimposed with similar conditions to the first one enforced during the first MCO last year.
The moratorium also needs to be coordinated by Bank Negara Malaysia instead of commercial banks, which are driven to make profit rather than help people in need.
Then, there is a need to rein in operating costs by reducing charges by utility companies.
Additionally, they will also recommend putting more cash into the hands of working-class Malaysians, who could drive domestic consumption and local tourism.
However, their hopes for a return of international tourism, meanwhile, remain low.
So, for travel industry players to survive, they said more emphasis will be on domestic tourism to flourish.
Langkawi Businesses Assocation deputy president Datuk Issac Alexander said measures must be introduced to entice locals to travel and spend.
“Local travel trade members must use this tourism lull to upgrade their products and services to be competitive. Face it, we are not the best of destinations because there are restrictions, and we have high operating costs.”
But without support from public and private financiers, the industry may not be able to rebound even if global tourism recovers, said Alexander, who adds there were worrying signs of decay in the industry even before the pandemic struck.
“The pandemic just proved it.
“For some such as hotels, it is more difficult to reopen than to close. Their costs may be higher, too.”
Alexender said that now is not yet the time to think of profits, but to come together as one nation to salvage any industry hard hit by Covid-19.
Citing the adage of “kita tolong kita” (we help each other), Alexander said it is time to come up with innovations to stimulate the economy and put money in the hands of people who will spend it.
“We also want confidence to return to the marketplace. Industry captains must be convinced to lead the way, to reinvest in the country that they made money from.” – The Vibes, February 24, 2021
