KUALA LUMPUR – The hospitality industry has taken a massive hit as official data show a total of 109 hotels have ceased operations this year in the country.
This was revealed in a written reply by the Tourism, Arts and Culture Ministry (Motac) to a question posed by Sivakumar Varatharaju Naidu (PH-Batu Gajah) who queried the impact of the Covid-19 economic crisis on the tourism sector, in particular the number of hotels that were forced to close up shop.
“From March to October 2020, 77 companies comprising hotels and resort hotels, motels, apartment hotels, chalets, rest houses/guest houses, bed and breakfast units, hostels, homestays, and other short-term accommodation have ceased operations,” said Motac.
“Meanwhile, 32 companies were wound up either voluntarily or through the judiciary.”
The ministry said that in light of the pandemic, it estimated losses in the tourism industry to be worth RM100 billion this year due to a lack of tourists.
It said Putrajaya had announced economic stimulus packages under the Prihatin and Penjana programmes, which include:
- Tourism tax exemption for the periods of July 1, 2020 to June 30, 2021
- Service tax exemptions on accommodation services from September 1, 2020 to June 30, 2021
- Introduction of the Employment Retention Programme which provides assistance up to RM600/month to employers for every staff member required to take unpaid leave due to the Covid-19 pandemic
- Continuing the wage subsidy programme for three months for employers already receiving assistance
- Tax cuts for Covid-19 related spending which may include purchase of thermometers and protective equipment
The ministry also announced a tax relief up to RM1,000 for individuals who make tourism-related expenditures until December 31, 2021.
“Motac is also studying other creative methods to assist the tourism industry. Recently, a programme was launched to conduct targeted assistance in the form of rebates/discounts or tourism package subsidies through online platforms, as well as cooperating with local tourism associations, theme parks, homestay associations, and shopping malls to promote attractive tourism packages to citizens,” said Motac. – The Vibes, December 4, 2020
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