GEORGE TOWN – DAP secretary-general Lim Guan Eng pointed out that despite the Perikatan Nasional (PN) administration’s efforts in pumping in RM530 billion into eight stimulus packages, it has still failed the tourism industry.
He laid the blame on Tourism, Arts and Culture Minister Datuk Seri Nancy Shukri for her inability to help the sector’s players to survive the RM100 billion in losses last year.
“The Hotel Royal Penang is the latest renowned hotel in Penang to shut down following the closure of the 5-star Hotel Equatorial and Holiday Inn Resort, due to the failure of the federal government to save the tourism and hospitality industry following the imposed Covid-19 total lockdowns.
“The 276-room four-star business hotel will be closed by November, putting hundreds of employees out of jobs.
“Malaysian Association of Hotels (MAH) chief executive officer Yap Lip Seng said that the hospitality industry has lost over RM11.3 billion with over 120 hotels closed down.
“Offering loans and tax deductions or rebates are meaningless when there is no revenue or business available,” he said in a statement.
The MAH June report showed that the industry achieved an average daily rate (ADR) of RM190 and an average occupancy rate (AOR) of 32% in 2020.
The ADR for 2021 is projected to be in the RM180-to-RM190 range, whereas AOR is expected to be far worse than last year at 23%.
“With the RM45 billion cash injection advocated by Pakatan Harapan and agreed to by the federal government in the memorandum of understanding for transformation and stability between the prime minister and four top PH leaders in Parliament on September 13, the Finance Ministry should be able to provide much-needed financial aid.”
The Bagan MP suggested that with the RM45 billion financial aid injection, the ministry should look into doubling the wage subsidy programme for all its workers, and offer an interest-free bank loan moratorium, business grants, and rental and utility subsidies.
He stressed that the tourism sector is far too important to be ignored or abandoned without any concerted financial assistance.
“While we can argue on the quantum to be given, the problem is that if none is offered, none can be expected to survive,” he said. – The Vibes, September 17, 2021
