Business

Not enough, hoteliers seek more aid from govt after Budget 2023 reveal

M’sian Association of Hotels proposes electrical tariff moratorium, stimulus package for hotels

Updated 3 years ago · Published on 25 Feb 2023 11:47AM

Not enough, hoteliers seek more aid from govt after Budget 2023 reveal
Malaysian Association of Hotels president Christina Toh says it is saddened to learn that there are no provisions in Budget 2023 to aid the recovery of the struggling hospitality industry when the sector is facing challenges on various fronts. – Pixabay pic, February 25, 2023

by Ian McIntyre

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

Related News

Malaysia / 6d

Malaysia records 17.5 million international tourist arrivals from January - May

Malaysia / 1w

New Malaysia-Thailand border crossing: Businesses will not be affected, says tourism authority

Places / 1w

Four premier hotels in Penang to be restored, open doors soon

Events / 2w

Penang taps Middle East medical tourism market

Places / 2w

Penang to work with neighbour, Kedah to promote tourism

Malaysia / 4w

Recent Rain Rave Water Music Festival generated over RM320m - Tiong

Spotlight

Malaysia

After Johor, the uncomfortable question for Anwar’s critics: Were we too impatient?

By The Vibes Says

Malaysia

Network School's business licences revoked, to cease operations tomorrow

Opinion

Orang Asli in Pahang: Token gestures or genuine recognition?

Malaysia

Tuition teacher sentenced to 105 years in prison and 70 lashes for raping daughter

Malaysia

Azam Baki denies involvement in RM178.29 million contract linked to brother’s company

Malaysia

Aminuddin urges NS voters to weigh manifesto promising benefits for M40 and B40 groups

Malaysia

No need to resign, PM has absolute power if there is doubt – Ahmad Zahid

World

Gaza’s water crisis deepens as families face thirst, disease and collapsing sanitation systems

You may be interested

Business

Oil prices rally above US$84 per barrel as US-Iran conflict deepens

Business

Oil prices near five-week high as US-Iran conflict fuels supply concerns

Business

Malaysia posts record RM340.9 billion trade in June as exports jump 45.4%

Business

Plastics industry faces tough year as raw material volatility add to cost pressures

Business

Central bank policies remain crucial in shaping currency market movements

By Alfian Z.M. Tahir

Business

Govt boosts SME digitalisation support with new smart manufacturing co-investment scheme