GEORGE TOWN – Hoteliers are displeased with Budget 2023’s allocation of around RM200 million in tourism incentives, saying it is insufficient to revive the industry back to pre-pandemic levels.
Malaysian Association of Hotels (MAH) president Christina Toh said the sector needs more as it is one of the worst affected during the Covid-19 pandemic.
“Whilst we have seen an uptick in arrivals, as of July 2022, Malaysia recorded only 3.2 million tourist arrivals with tourism receipts of RM9.4 billion for the year 2022 – a far cry from pre-pandemic numbers of 26 million arrivals with tourism receipts of over RM86.1 billion for the year 2019,” she told The Vibes.
For the year 2023, the government targets to attract 15 million tourists with tourism receipts of RM47.6 billion.
On this note, MAH strongly believes that the allocation of RM200 million in the budget to nurse the recovery process is insufficient as it is less than 0.5% of the targeted tourism receipts of RM47.6 billion for 2023.
MAH also believes that more can be done to support the recovery of the hotel sector, and urged the government to consider proposals such as extending the personal tax relief for domestic travel for 2023.
Other ways the government could help the sector are by providing discounts on the assessment rate and quit rent for hotels for 2023; re-introduce a wage subsidy programme and provide discounts on electricity and water bills.
Hoteliers also want the home-sharing sector, such as Airbnb, to be regulated so that a level playing field can be created for the accommodation industry.
MAH’s views were supported by Malaysia Budget and Business Hotels Association president Sri Ganesh Michiel, who said that Budget 2023 does not have a positive long-term effect on the recovery of the hospitality industry.
Besides not regulating short-term stays and controlling the influx of overseas online travel agents, the government failed to change the annual services and sales revenue threshold for the industry from RM500,000 to RM1.5 million, he said in a statement.
Sri Ganesh also said budget hotels are usually patronised by those from the B40 category.
“There are no tax incentives to further stimulate tourism for both its consumers and service providers.
“The incentives accorded may have the interests of the travel trade players in mind, but it is inadequate to drive the recovery of the industry.”
Furthermore, foreign tourist arrivals are still low, compounded by the fact that Malaysians are tending to choose overseas travel for their vacations, he added. – The Vibes, October 8, 2022
