Malaysia

Hotels get short end of the stick, again, with Pemulih

Operators disappointed RM150 bil package leaves them out despite PM acknowledging tourism sector among worst hit by Covid-19

Updated 5 years ago · Published on 29 Jun 2021 8:00PM

Hotels get short end of the stick, again, with Pemulih
One initiative announced for the travel industry is the tourism, services and income tax exemption for hotel operators until year-end. – expedia.com.my pic, June 29, 2021

by Rachel Yeoh

GEORGE TOWN – Hoteliers are feeling let down as the RM150 billion Economic Recovery and People’s Protection Package (Pemulih) unveiled by the prime minister does not include assistance for them, even though they have sustained heavy losses and faced cash-flow issues amid the pandemic.

The Malaysian Association of Hotels’ (MAH) management committee aired members’ disappointment with the absence of measures specific to the tourism and hotel sector, despite Tan Sri Muhyiddin Yassin saying it is one of the worst-hit industries by Covid-19.

It is seeking clarification on the extension of the Wage Subsidy Programme by another four months, specifically the first two months covering all sectors of the economy, and the next two months where only sectors on the “negative list” will get the aid.

There is no indication that hotels are included as they are not on the said list despite being heavily impacted by travel restrictions.

One initiative announced for the industry is the tourism, services and income tax exemption for hotel operators until year-end.

However, it remains unclear whether they are exempted from paying the Human Resource Development Corporation levy for another two months, as it is stated that only employers not operating during the lockdown are eligible.

The one-off financial assistance of RM3,000 offered to travel and tour operators also does not help hotels.

However, hoteliers are appreciative of the removal of the salary cap of RM4,000 for wage subsidies, and the extended exemption of tourism and services taxes for their establishments till December despite this not being direct fiscal support.

“The industry also welcomes the blanket loan moratorium for all individuals that could provide much-needed relief to people in the industry,” said MAH in a statement.

“The moratorium should be interest-free to ensure borrowers do not fall deeper into debt.

“The industry will continue to provide ground data and updates to the government, to ensure timely decisions and strategies are implemented when the country progresses into Phase 4 of the National Recovery Plan to rebuild and restart tourism.”

Penang is looking into vaccinating trishaw peddlers under the Covid-19 Immunisation Programme for the Sustainability of the Tourism Industry initiative. – The Vibes file pic, June 29, 2021
Penang is looking into vaccinating trishaw peddlers under the Covid-19 Immunisation Programme for the Sustainability of the Tourism Industry initiative. – The Vibes file pic, June 29, 2021

Helping iconic trishaw peddlers

The Penang tourism and creative economy exco’s office (Petace) has its eyes on trishaw peddlers, with exco Yeoh Soon Hin saying a slew of other initiatives has been launched to rejuvenate and rebrand the image of this group to reignite public interest in using their services.

“As tourism activities remain halted for the time being, we have doubled the monthly payout for trishaw peddlers from RM100 to RM200, effective June to December 2021.”

The state is also looking into vaccinating trishaw peddlers under the Covid-19 Immunisation Programme for the Sustainability of the Tourism Industry initiative, given that many are senior citizens who are not tech-savvy and may not have the MySejahtera app.

Penang is now awaiting approval and vaccines from the federal government.

“My office is engaging with trishaw peddlers to facilitate their vaccination registration, and to explain the importance of getting the jab. We understand that not everyone has access to gadgets and information, especially among vulnerable communities,” said Yeoh.

“These trishaw peddlers are among Penang’s tourism icons who have contributed to our vibrant tourism landscape. They remain of paramount importance to the state government, and we will do our best to look after their welfare.

“We acknowledge that even basic necessities such as food are a growing concern to these trishaw peddlers. We have delivered multiple rounds of food, ordered from different hotels, to assist Penang’s trishaw community and hoteliers.”

Petace has worked with numerous entities, such as the Penang Chinese Chamber of Commerce and the state’s oldest heritage biscuit and sesame oil brand, Ghee Hiang, to disburse essentials including food, masks and hand sanitiser.

Organisations and individuals interested in contributing to the state’s trishaw peddlers can email to [email protected]. – The Vibes, June 29, 2021

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