Tourism sector hanging by a thread, urgently needs critical lifeline

Tourism sector hanging by a thread, urgently needs critical lifeline

Budget hotels struggling with lack of guests while grants from Penjana tourism fund are very difficult to obtain, says Malaysia Budget Hotel Association.

Most budget hotels are now struggling to even get one-night bookings under the current CMCO. (Bernama pic)
PETALING JAYA:
Tourism industry players are hoping that the government will provide more assistance to the sector which has been badly hit by the Covid-19 pandemic, if it wants them to stay afloat and help the country’s economy grow.

They said that the allocation for the sector announced in the 2021 Budget needs to be re-evaluated to ensure better support is given to those affected.

Malaysia Budget Hotel Association (Mybha) president Emmy Suraya Hussein said if the conditional movement control order (CMCO) were to continue to the end of the year, 40 budget hotels in major urban areas will be forced to close down with about 2,000 workers losing their jobs, if the government did not step in.

“There is no other way. Hotel operators cannot afford the expenses, including employee salaries. Just imagine, even to get a one-night booking is difficult. How can we survive for another month or two?

Mybha president Emmy Suraya.

“We really need government assistance to survive. We have employees and they have families as well as commitments. Not only hotels, all players in the tourism industry are also affected by Covid-19,” she said.

Emmy Suraya said among the assistance that could be considered by the government apart from the special allocation in the budget was the extension of the moratorium period so that industry players would be able to focus on restructuring the companies’ finances.

Compounding matters, she claimed, was that the RM1 billion Penjana Tourism Financing facility announced by the government was very difficult to obtain, adding that only 3% of the applications submitted by its 2,300 members had been approved due to the strict rules imposed by the banks.

Malaysia Bumiputera Tourist Guides Association president Zulkifli Ismail concurred with Emmy Suraya and hoped that the 2021 Budget would be reviewed by providing one-off assistance of at least RM1,000 each to tourist guides.

He stressed that 80% of the 9,000 members of the association are part-time employees without a fixed salary and they had been badly hit since the implementation of the MCO and had to look for other jobs.

Therefore, he said, among other assistance that can be considered by the government, is to provide locations for associations and its members to sell tourism-related products, such as handicraft, in efforts to revive the industry.

On Nov 6, Finance Minister Tengku Zafrul Aziz, when tabling the 2021 Budget, announced among others that the government will provide employment opportunities for 500 people in the local and Orang Asli communities as tour guides at all national parks to boost the ecotourism segment.

In addition, to ensure the readiness of tourist hotspots, a total of RM50 million will be provided for maintenance and repair of tourism facilities throughout the country.

Meanwhile, Malaysia Bumiputera Tourism Operators Association president Mohd Ali Ab Malek suggested that a special allocation be given to the tourism industry as the sector has been contributing to the country’s economy for decades.

“The special allocation is highly anticipated by the tourism industry which consists of travel and tour agencies, tour guides, hotels and inns, recreation centres and theme park operators, transport, food and beverage operators as well as shopping malls.

“The tourism sector has been severely affected. The industry is in dire need of assistance from the government,” he said.

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