Malaysia

Scant Budget allocation for tourism threatens 3.6 mil jobs

Industry player says govt has done nothing to prepare for when market reopens after virus crisis

Updated 5 years ago · Published on 15 Nov 2020 3:00PM

Scant Budget allocation for tourism threatens 3.6 mil jobs
The focus should be on domestic tourism, seeing as to how international borders remain closed due to the ongoing Covid-19 crisis, says Penang exco Yeoh Soon Hin. – The Vibes file pic, November 15, 2020

by Rachel Yeoh

GEORGE TOWN – With 3.6 million tourism players’ livelihood on the line, Budget 2021’s allocation for the sector is not nearly enough, said Penang exco Yeoh Soon Hin.

Yeoh, who holds the tourism portfolio, has written to the federal government on how to stimulate the industry, which is among the hardest hit by travel restrictions triggered by the Covid-19 pandemic.

The focus now should be on domestic tourism, seeing as to how international borders remain closed, he said in a statement.

“It is a huge challenge to revive the industry. There are almost 3.6 million tourism players in our nation who are on the verge of closing down, and many more will lose their jobs.”

He has proposed that Putrajaya increase the electricity bill discount by 15% for hotel operators, travel agencies, shopping complexes, convention centres, theme parks and local airline offices.

He also called for an extension of the loan moratorium and a continuation of the wage subsidy programme for those in the industry.

Other suggestions include an exemption of licence renewals for tour operators and guides until December 2021, and a RM10 million allocation for the upkeep of heritage buildings in all states.

Malaysian Association of Hotels national board vice-president Khoo Boo Lim said it is demoralising to talk about the complaints that the group has received.

“There are no ideas from the government on what it should be doing to help and prepare for next year. We must be planning to ‘fight’ with our neighbouring countries when the market opens back up with the anticipation of the (Covid-19) vaccine.

“People will start to travel, and if our country has not done anything to entice tourists, we will lose out. The government only wants to protect itself, and is not interested in helping the people and country.

“I’m sure many industries are suffering as well, but I don’t really see anything in Budget 2021 that has significant ideas or strategies. Hotels can just pray for a miracle to happen.”

Malaysian Association of Tour and Travel Agents president Datuk Tan Kok Liang, in a statement, said the Budget has failed to provide solid relief programmes to protect tourism jobs and businesses, and will not do much to put the sector on the road to recovery.

“The outlook for the next 12 months is bleak, and without the right support, we will inevitably see the industry contracting quickly and drastically.”

The Budget, tabled by Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz on November 6, has allocations for airline staff facing retrenchment, Human Resources Development Fund levy exemptions for tourism-affiliated companies, jobs for Orang Asli and local communities as tour guides in national parks, the maintenance and restoration of tourism facilities nationwide, the Malaysia Healthcare Travel Council, and grants for traders, taxi drivers, e-hailing drivers and tour guides in Sabah.

However, there is little mention of efforts to sustain tourism businesses amid the pandemic.

Tourism, Arts and Culture Minister Datuk Seri Nancy Shukri has announced that an additional RM200 million will be provided to the ministry for the implementation of a stimulus package under the Tourism Rehabilitation Plan next year. – The Vibes, November 15, 2020

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