Malaysian Association of Hotels CEO Yap Lip Seng said hoteliers, having lost all revenue streams in the past year, had looked forward to more direct assistance, such as higher wage subsidies, higher electricity, and discounts on water and assessment rates.
Budget Hotel Association president, Emmy Suraya Hussein said the latest package was insufficient. She called for a higher wage subsidy of RM1,200 per employee, and an automatic extension of the loan moratorium.
She said the government should have made it compulsory for banks to provide the loan moratorium. “A recommendation is not sufficient and should be implemented through a directive to ensure that every assistance and recommendation by the government is complied with by everyone,” she said.
Yap said that “other than the 10% discount on electricity from January to March 2021, there is no other assistance extended to the hotel industry. Moratorium on loans was again left at the hands of commercial banks and financial institutions.”
Yap added that the industry had waited with much anticipation for aid after being forced to go under a second round of MCO restrictions since Jan 13, which he said has crippled the tourism industry.
On the wage subsidy programme, he said the government has failed to improve the initiatives for the tourism industry although it was heavily impacted by the Covid-19 pandemic.
“A higher wage subsidy programme is needed to keep hotels and tourism businesses afloat, without which more will be forced to retrench,” he said.
According to Yap, the industry had repeatedly proposed a 50% wage subsidy for those earning up to RM4,000 and 30% for those up to RM8,000, in order for employers to retain jobs.
“These have fallen on deaf ears again.”
He regretted how the tourism industry was being neglected again despite its contribution to the country’s economy.
“With no clear direction and forward plans for the tourism industry, there is little hope for survival,” he said.
It was previously reported that the tourism industry contributed 14.1% (RM166 billion) to the country’s gross domestic product in 2015; 14.5% (RM182 billion) in 2016; 14.6% (RM201 billion) in 2017; 15.2% (RM220 billion) in 2018 and 15.9% (RM240 billion) in 2019.
Last year, the Covid-19 pandemic greatly affected the tourism industry with an estimated total loss exceeding RM100 billion.