GEORGE TOWN – The Malaysian Association of Hotels (MAH) is disappointed by the lack of aid under the Malaysian Economic and Rakyat’s Protection Assistance Package (Permai), announced by Prime Minister Tan Sri Muhyiddin Yassin on Monday.
MAH chief executive Yap Lip Seng said if the right type of aid is not provided soon, the hospitality industry might collapse.
“Malaysia will continue to lose competitiveness and talent, and along with it, its capacity for recovery. With no clear direction and forward plans for the tourism industry, there is little hope for survival.”
The hotel industry has taken a beating following the lockdowns brought about by Covid-19.
The RM15 billion Permai package was preceded with much anticipation by the industry, which has endured a massive drop in patronage due to the various iterations of the movement control order.
Having lost all revenue streams, the hotel sector was looking forward to more direct assistance, such as higher wage subsidies, electricity and water discounts, and rebates on assessments, said Yap.
He said the aid package, however, has fallen short of the industry’s expectations.
Other than the 10% discount on electricity, and even then only from January to March, there is no other assistance extended to the hotel industry, he said.
The moratorium on loans is again left in the hands of commercial banks and financial institutions.
While the Wage Subsidy Programme is being extended to other industries, the government has again failed to improve it for the tourism sector.
Higher wage subsidies are needed to keep hotels and tourism businesses afloat, as otherwise, more will be forced to retrench their employees, said Yap.
“We have repeatedly proposed a 50% wage subsidy for those earning up to RM4,000 and 30% for those up to RM8,000, for employers to retain jobs. This is the only way to prevent mass lay-offs, but it was ignored.”
Meanwhile, the Malaysia Budget Hotels’ Association recorded its appreciation to the government for the discount on power tariffs, but stressed that more must be done to prevent properties from closing.
Its deputy president, Sri Ganesh Michiel, said there is a need for a special aid package tailored to hotels and tourism.
He said it should be provided over a reasonable period, and complemented with a moratorium to help the industry in such challenging times. – The Vibes, January 21, 2021
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