KOTA KINABALU – Kota Kinabalu MP Chan Foong Hin has questioned Putrajaya’s move to allocate nearly double the amount for tourism next year compared with what was given for 2020, which had been designated “Visit Malaysia Year”.
He said the RM94 million as development allocation for tourism under Budget 2021 is pointless if it does not directly help entrepreneurs in the industry badly affected by the Covid-19 pandemic.
Speaking to The Vibes, he said the funds need to be converted into cash handouts to aid local tourism players.
“Right now, any spending purportedly for developing the tourism sector will be useless and off-tangent if existing players, mostly operating privately and independently from the government, cannot survive the severe drop in business caused by the coronavirus in the first place,” he said.
"The aim should be to sustain existing players in the tourism industry first and not let them exit or give up on the industry.”
Chan pointed to the relevant allocations listed in the Budget 2021 booklet.
Specifically, RM39 million is provided under Code 80001 (private-public partnership/private finance), RM28 million under Code 01400 (facilities/infrastructure maintenance) and RM27 million under Code 94000 (marketing and promotion).
“These three allocations total RM94 million, which is far more than the total development allocation for 2020 amounting to RM67 million,” he said, noting that 2020 had also been designated “Visit Malaysia Year”.
Chan said that there is no justification for providing such a huge development allocation in 2021 – exceeding the amount for Visit Malaysia Year 2020 – when it provides no relief whatsoever to struggling players in the tourism industry.
He said this in expressing his support for DAP secretary-general Lim Guan Eng’s suggestion that the ministry provide financial assistance to the tourism industry to offset revenue losses of RM54 billion for the first nine months of this year.
Lim, who is also Bagan MP, had made the call during his debate on the Tourism Ministry’s allocation under Budget 2021 in Parliament on Tuesday.
Chan added that the RM1 billion Penjana Tourism Financing (PTF) facility announced by the government is difficult to obtain due to strict rules imposed by banks.
“If the assistance (such as loans and moratoriums) is left to the sole discretion of financial institutions and commercial banks, then industry players, especially hotels and tour operators, will continue to be marginalised,” he said.
“They will be forced to make difficult decisions and take drastic action to the extent of giving up on the tourism industry and moving to a different one, leading to an outflow of talents,” said Chan.
Chan said it is time to stop being stingy and start giving out cash handouts in the form of income replacement for those in the tourism industry.
“A RM600 wage subsidy is definitely insufficient and I am of the view that it is fair to pay or subsidise more for workers in the tourism industry.
“The three provisions totalling RM94 million should be converted, at least partly, into cash assistance or cash handouts. Certainly, this can help provide immediate relief to entrepreneurs so that they can at least survive the pandemic first.” – The Vibes, December 10, 2020
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