GEORGE TOWN – Hoteliers are seeking more aid from the federal government despite the RM250 million allocation to promote tourism under the proposed revised Budget 2023.
The Malaysian Association of Hotels (MAH), in a statement, said it appreciates the allocation given but as the Tourism, Arts and Culture Ministry is targeting over 16 million tourist arrivals with RM49.2 billion in revenue this year, the allocated amount is insufficient, the MAH said.
Its president Christina Toh said that constitutes to less than 0.6% of the expected receipts.
“Additionally, the blanket method of allocation for the tourism industry may not fully reach struggling sectors and address industry needs. Case in point, we were saddened to learn that there are no provisions to aid the recovery of our struggling hospitality industry more so now, when the sector is facing challenges on various fronts.”
Hotels must contend with the electrical tariff hike earlier this year that has caused a significant increase in their monthly operational costs.
The sector also had to cope with the higher minimum wage and lower working hours.
The hospitality sector is labour-intensive, so it is vulnerable to the new guidelines on minimum wages.
Toh said that the MAH is proposing the following:
• Moratorium for the new electricity tariffs to hotels, theme parks and convention centres until the end of 2023 to provide time for recovery
• Provide a stimulus package for hotels via one-off financial aid or continuous added value programmes
• Introduce special tax allowance or deductions with regards to hotels’ renovations and refurbishment post Covid-19
• Fast-track hotel applications for foreign workers
• Regulation of short-term accommodations to ensure a level playing field and safety of guests
• Collection of tourism tax at the country’s entry points to guarantee all inbounds are taxed and not restricted to those that choose to stay at legitimate hotels
The MAH said it also welcomes the disclosure to hold a “Visit Malaysia Year 2025” campaign to woo more tourists. – The Vibes, February 25, 2023
