Half of tourism industry players cut jobs to survive pandemic, survey finds

GEORGE TOWN – A survey by the Malaysian Association of Hotels (MAH) of 320 industry players has revealed that 51% of them were forced to shed jobs to survive the Covid-19 pandemic.

MAH chief executive officer Yap Lip Seng said that its members have been patient for more than 15 months since the outbreak began, and were the first to be impacted and likely the last to recover.
 
“Even if interstate travel is allowed, it will only be allowed at year-end, which means no travel and tourism activities in all of 2021.
 
“Stakeholders argue that this is not a question of being patient, but rather survival.

“Having sustained losses for more than a year now, the industry will not be able to endure another six months of losses, where more hotels will most likely be closing down, and more people losing their jobs in the absence of additional assistance,” said Yap.
 
He said the tourism and hotel sectors need extended wage subsidies till the end of the year, including a higher rate of 50% for those earning up to RM4,000 and 30% for those earning RM4,000 to a maximum of RM8,000 a month.
 
“To survive the year till the sector’s reopening, the industry will also require more financial assistance on utilities, a 50% discount on electricity, water as well as sewerage, along with the relaxation of statutory payments on things such as licences, Sosco and EPF contributions.
 
“Banks need to step up and take the initiative to help industry players with transparent interest-free moratoriums.” 
 
Meanwhile, Malaysian Association of Travel and Tour Agents (Matta) secretary-general Nigel Wong said that about 1,400 of 6,000 registered travel agencies in Malaysia have closed since last year.

“Half of the 6,000 members have gone into hibernation and may not have the capacity to reopen even if travel is allowed to resume,” he said.

Tourism entrepreneur Datuk Alexander Issac, meanwhile, proposed that the sector’s reopening be brought forward from the year-end to August.

This is because some 40% of Malaysia’s population are expected to complete their vaccinations by then, he said.

The Tropical Charters CEO said that to salvage the industry, Prime Minister Tan Sri Muhyiddin Yassin must take decisive action to allow those who are fully vaccinated to travel.

“But if the government cannot permit this, financial institutions need to extend their moratorium packages to year-end to help industry players cope failing which, the industry will likely see more than 60% of its ventures closing permanently by year-end, making it difficult to resuscitate the industry even after the pandemic is contained.

“The consequences are multi-fold, from job and income losses, to leaving a black mark on the country’s ability to recover in the tourism sector and ignite economic growth.” – The Vibes, June 17, 2021