GEORGE TOWN – The Malaysian Association of Hotels (MAH) has urged the Finance Ministry to pay special attention to sustaining the recovery of the hospitality business, which continues to struggle despite a gradual recovery in tourism.
Outlining its wish list for Budget 2023, MAH’s honorary secretary-general Datuk Megat Shahrul Azman Abas said hotel operators hoped that the utility charges for electricity and water be lowered or made similar to the industrial rates enjoyed by the factories.
“Consumption is difficult to control because the hotels cannot impose on their guests to save water or electricity, especially on what happens inside hotel rooms,” he said.
Tenaga Nasional Bhd charges 43.5 sen/kWh for the first 200 kWh (1 -200 kWh) per month for the commercial (hotels) sector while the charge is 38 sen for the industries.
He also wanted water authorities and the local governments to reduce their charges to allow hotels more “breathing room” to recover from the pandemic.
“Other perks hoteliers hope to cash upon is the reduction of the income tax imposed on the average earners, so they will have more money to withstand the rising cost of living and invest towards tourism.
“The hotels also would like tax breaks on the operating profits they have earned so the additional savings earned can be ploughed back towards upgrading their respective properties and improving guest amenities,” he said.
The former Langkawi Development Authority chief executive also urged the ministry to provide training grants to hotels that continue to hire local staffers despite the current shift towards employing foreigners due to an acute labour shortage.
Megat also wants the federal government to step in and regulate hotel tariffs by allowing four to five-star properties to quote their room tariffs in US dollars in view of how the greenback has significantly appreciated against the ringgit.
From 4.20 against US$1 early this year, it is now around 4.60.
“We need to offset our currency deficit losses.”
“Hotel rates in Malaysia are the lowest in the region, so there is room to hike up prices while also maintaining a tariff for local tourists.”
“While tourism is on the mend, the rising inflation, decline of the ringgit, the prolonged war in Europe and a possible global recession continues to impede the ability of the hotels to register notable profits,” he said.
On top of it, is the regional competition for tourist dollars, as more Malaysians now prefer to travel regionally to countries that offer cheaper food and accommodation.
Although the ringgit has declined against various currencies with the exception of the British pound sterling, Megat said that there are Malaysians holidaying overseas.
“It is expected as people are cooped up for so long, so they need to break free.”
He also hopes that the travel trade industry, particularly in Langkawi, can adopt innovative measures to keep costs low and to offer competitive prices in contrast to the prices offered by their regional competitors. – The Vibes, October 6, 2022.
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