ALOR STAR – Hotels in Perlis and Kedah stand to lose up to an estimated RM4 million during the 14-day movement control order (MCO), which has restricted travel and tourism activities.
Malaysian Association of Hotels (MAH) Kedah and Perlis chapter chairman Eugene Dass said the figure is derived from projected and actual revenue losses that more than 200 MAH member properties will incur due to the MCO imposed on six states, including the Federal Territories of Kuala Lumpur, Putrajaya and Labuan.
Although Kedah, including Langkawi, and Perlis are only under the conditional MCO, the full lockdown imposed on other areas will drastically cut down the number of patrons at member hotels, as major clients are from these affected states, especially Penang, Selangor, Kuala Lumpur, Melaka and Johor.
The MCO bars inter-district and inter-state travel, with exceptions given to those working in the essential economic services sector.
In view of this, Dass said the wage subsidy should be raised to 50% from the present 30% for those earning RM4,000 and above a month, and 30% for those earning RM8,000 and above.
He said any token discount from utility companies and local governments will also be appreciated.
“If no help is accorded, the hospitality sector will sink into bankruptcy, and it will take a while before the owners can recover. Effective measures that encourage spillover effects are needed.”
Dass said the affected hotels are using the lull to enhance the standard of their hospitality service.
He said hotel management will put more emphasis on retraining employees, while housekeeping staff members will be deployed to ensure cleanliness levels are maintained.
He added that sanitisation of the properties is also encouraged.
Hotels in Malaysia had employed up to 155,000 workers in 2017, but it is believed that the total has been reduced by 20% due to the ill effects of the Covid-19 pandemic on tourism in the past year.
Malaysia Budget Hotels Association deputy president Sri Ganesh Michiel said the federal government needs to extend the temporary aid package for budget hotels, which have been adversely affected by the MCO.
Even during the recovery MCO period, hotels saw lukewarm responses, as many corporations and government agencies encouraged their workers to work from home and conduct online video conferencing, hence decreasing the need for gatherings, like conferences, dinners and seminars. – The Vibes, January 14, 2021
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