ALOR STAR – Ahead of the Budget 2021 unveiling on November 6, hoteliers here are seeking more tax rebates and a loan moratorium extension for another 12 months.
Judging from the significant losses they have incurred due to the travel restrictions, the Finance Ministry needs to pay more attention to tourism players that are on the brink of survival, said the Malaysian Association of Hotels Kedah/Perlis chapter chairman Eugene Dass.
He added hotel owners are hoping for a reduced corporate tax rate and a waiver in tourism levy as well as continued discounts on electricity and water tariffs.
“We have incurred more than RM5.5 million in losses in the third quarter owing to this third wave of coronavirus. We have yet to tabulate total losses for the year but it looks like the tourism industry is wiped out in 2020.”
If such incentives are not provided, Dass estimated that more hotels will close down as they are among the worst-hit since the pandemic started early this year.
So far, more than 20 hotels of various sizes have shuttered in Perlis and Kedah.
“The closures are mostly temporary as owners want to reopen but they are unable to do so as long as we are under some form of lockdown.”
Dass said more hotels will lay off their staff if the industry remains sluggish next year.
Hotels here cater to international tourists but now have no choice but to scramble for whatever that is left of the domestic market.
Dass hopes the federal government will regulate Airbnb as there are now more than 44,000 hosts nationwide.
“Home share operators do not pay tax or subject to licensing requirements of the local authorities.”
More allocation needs to be accorded to Tourism Malaysia as the country needs to be ready to welcome tourists once the pandemic is contained, he said. – The Vibes, October 29, 2020
