LANGKAWI – Half of the 3.5 million tourism workforce will be out of a job by the end of next year, warned an industry player, if the government does not step in to cushion the pandemic-battered sector’s losses.
Former National Tourism Council vice-chairman Eric R. Sinnaya told The Vibes that the Penjana aid and efforts to boost domestic travel so far have failed to produce a multiplier effect.
He estimated that 20% of employees in the sector have been let go since March.
“Now, there are hardly any tourists, and travel trade operators and entrepreneurs are relying on their reserves and government aid.
“This will soon dry up as there is no such thing as continuous aid without any return or collateral for the lenders.”
He said domestic tourism will further dwindle as the end of the loan moratorium in September sees people taking on a heavier financial burden.
“Frankly, the industry can collapse by next year. Even if we reopen the sector, other countries have a head start because they have begun rebooting their tourism market due to their ability to contain (Covid-19) infections early.
“We are struggling with the third wave.”
The former chairman of the Malaysian Association of Travel and Tour Agents’ Kedah chapter added that other nations have established travel bubbles, while the same cannot be said here.
He said hotels are downsizing their workforce as occupancy rates have plunged to 15%.
He urged the government to find ways to keep tourism’s economic edge, noting that despite the attractive promotions to entice local visitors, operational costs exceed the income made.
Sinnaya called for the industry’s needs and struggles to be adequately addressed in Budget 2021, to be tabled on Friday.
“We need to keep tourism in people’s minds even when they can’t travel. When the pandemic is contained, the urge to travel should be huge.”
He also urged the Finance Ministry to provide direct financing to industry players, saying disbursement is ineffective when done through government agencies.
Tourism was the third-biggest contributor to the country’s gross domestic product, after manufacturing and commodities, last year, with RM86.14 billion in tourist receipts. – The Vibes, November 2, 2020
