LANGKAWI – The Langkawi Business Association has called for short-term cash incentives to encourage local travel next year, as the Covid-19 pandemic has caused 80% of the market to be centred on domestic tourism.
Deputy president Datuk Issac Alexander told The Vibes that more stimulus should also be given to help trade members repay loans, subsidise utility costs and market the country as a safe destination.
Putrajaya and tourism authorities must continue providing such assistance for several months to prevent the industry’s collapse, he said.
“We can emulate what Thailand mooted by providing a cash incentive of RM1,000 to Malaysians to visit local destinations, or increasing the tax deductible from the present RM1,000 to RM2,000. We need to inject incentives into the tourism market.”
Thai tourism is also uncertain despite the kingdom having a bigger share of the inbound market than Malaysia, he said.
The travel sector may need another 18 months to fully recover from the blow dealt by Covid-19, despite reports that vaccines will be available soon, said Alexander.
“We cannot see tourism returning in a big way next year; 2021 is slated to be a period of recovery, and at best, we expect 2022 to be more vibrant, in tandem with the recovery of the global economy.”
The industry was worth up to RM41.69 billion in 2019, according to Tourism Malaysia statistics.
Tourism, Arts and Culture Minister Datuk Seri Nancy Shukri has been reported as saying the country lost RM45 billion this year due to the virus crisis.
However, she said, there is room to rebound after the Treasury allocated RM200 million in Budget 2021 to aid the sector’s recovery.
The World Tourism Organisation, in a May 7 report, estimated that international tourist numbers could fall by as much as 60% to 80% this year.
There were 67 million fewer international visitors in the first quarter, translating into a loss of US$80 billion (RM325.8 billion) in tourism receipts. – The Vibes, December 3, 2020
