6-month sector shutdown better than ‘sudden’ MCO, says hotelier

GEORGE TOWN – It is no secret that the tourism industry has been crippled – and left without a crutch to lean on – after the first movement control order (MCO) was declared in March last year. 

Fast-forward 16 months, and things have only gotten worse with the imposition of MCO 2.0, and now, MCO 3.0 last Wednesday.

The latest lockdown, which is scheduled to last till June 7, deals heavy losses to businesses already struggling to stay afloat.

Under these circumstances, the Malaysian Association of Hotels’ Penang chapter chairman, Raj Kumar, said it may be better if the government announces a six-month industry shutdown instead of abruptly imposing the MCO, which has drastically impacted businesses.

He told The Vibes that instead of announcing lockdowns at the last minute, it is better to call for a longer shutdown, to let the industry plan ahead.

Many hotels are closing temporarily after Hari Raya Aidilfitri. This is because with the one-month MCO, there is no money to pay salaries. Where are you going to get the loan? Last year’s loans have also not been paid.

“The (goverment) subsidy is over, and with the little that was given, you couldn’t even pay the electric and water bills.

“It is very difficult for the tourism industry to bounce back.”

Raj said The Light in Seberang Jaya, where he is general manager, closed at midnight on May 9, although the city hotel had buffet bookings until the end of Ramadan on Wednesday.

This meant that it had three days of buffet bookings that could not be used.

“Of course, we had to handle the last-minute cancellations. We gave our customers the option to either get a refund or a voucher to be used by either June or July,” said Raj.

Though it is too early to estimate the total losses, he said a hotel event could bring in RM300,000 to RM500,000 a day, depending on the hotel.

Meanwhile, Muhammad Bakhtiar Wan Chik, PKR’s spokesman on tourism matters, said the country’s tourism sector has once again been frustrated by the government with the imposition of MCO 3.0.

He said hotels and restaurants have been left gasping for air as they were unable to service patrons wanting to break fast at buffets in the last few days of Ramadan.

Focus on helping industry workers

“In addition to the loss of having to cancel room bookings during the Aidilfitri season, it only adds to the burden of the tourism sector, which has been paralysed since the closure of borders following the Covid 19 pandemic,” said Bakhtiar.

“The tourism industry will face greater losses if there is no follow-up action from the government.

“Apart from assistance such as the Pemerkasa initiative by the government, other rehabilitation processes should continue, where the government can consider providing flexibility so that guests in the hotel industry are allowed to dine in with strict standard operating procedures.”

The RM20 billion Pemerkasa, or People and Economic Strategic Empowerment Programme, stimulus package was unveiled by Prime Minister Tan Sri Muhyiddin Yassin on March 17 as an effort to jump-start the nation’s economy.

Bakhtiar said the government must pay special attention to the more than 7,000 workers currently in the hotel sector, after 12,000 people were laid off or ordered to go on unpaid leave due to hotels’ inability to cover wages. 

The Social Security Organisation wage subsidy should also continue, he added.

The tourism industry suffered RM100 billion in losses last year.

Malaysia received 26 million tourists in 2019 and only four million in 2020 – a whopping decrease of 80% after a steady increase throughout the previous years.

“This shows that Malaysia’s tourism sector has been severely weakened,” said Bakhtiar.

If no revolutionary and radical measures are taken by the government to revive the industry, which has been in turmoil since MCO 1.0, he said, many businesses parked under tourism risk going bankrupt.

He urged the Tourism, Arts and Culture Ministry to learn from neighbouring countries, such as Indonesia and Thailand, and continue promoting Malaysia even though international borders remain closed, so that tourists will still choose the nation as a travel destination once the situation returns to normal.

“The government should be more targeted in carrying out the MCO, as stated by the prime minister on March 17.

“This sector needs a sustainable strategy so that hotels, agencies and tourism won’t be forced to cease operations and carry out lay-offs.” – The Vibes, May 14, 2021