The Malaysian Association of Hotels (MAH) acknowledged the exemption of tourism tax and service tax for hotels and the 10% discount on electricity bills but said some of the proposals made by the industry had not been addressed.
“The tourism industry, especially hotels, had expected the extension of the wage subsidy programme, a much-needed assistance to help employers retain its workforce. We had hoped that the government would consider a higher subsidy for tourism.
“Extension of the exemption of tourism tax and sales and service tax (SST) for hotels until the end of the year will facilitate recovery when the interstate travel ban is lifted. These, alongside other fee and levy waivers for the tourism industry, were part of suggestions and proposals submitted by the industry to the tourism, arts and culture ministry (Motac),” MAH president N Subramaniam said in a statement.
Subramaniam said that earlier this year, MAH had submitted a 19+2 points proposal to Motac highlighting the immediate assistance needed by the industry, one of which was the 50% discount on electricity, justified by Tenaga Nasional Bhd’s (TNB) announced net profit of RM3.4 billion for the year 2020 while the entire tourism industry suffered massive losses.
“We are facing unprecedented times and TNB should be more considerate towards the tourism industry. The 10% discount announced and extended until June is insignificant, especially at a time when hotels are operating at low occupancy rates,” said MAH.
For now, Subramaniam said MAH has reported a nationwide average hotel occupancy rate of 20% for the month of January 2021 and only 18% for February.
He also called on the government to lift the ban on interstate travel.
“MAH believes that domestic air travel between green zones is possible and is possibly a safer option. Travellers must present confirmed hotel bookings and flight confirmation to be given the approval to cross states. This will not only ensure safe travel but also help the airlines, arguably the worst hit even within the tourism industry,” he added.
Meanwhile, the Malaysian Association of Tour and Travel Agents (Matta) secretary-general Nigel Wong urged the government to provide a blueprint on reopening borders and interstate travel.
“Apart from the financial assistance, what we are looking for is the tentative date on which the government is planning to reopen international borders so that the industry can prepare.
“At the moment, there is still too much uncertainty over the government’s SOPs and policies. Because of that, the industry itself cannot prepare better,” Wong told FMT.
Malaysia Budget Hotel Association vice-president Sri Ganesh Michiel urged the government to introduce a special stimulus package to aid hotels rated three stars and below.
“Our businesses have been affected since December 2019 and with the Covid-19 crisis, it will take longer to recover,” he said in a statement.
The association also urged state governments to play a part in boosting tourism to help budget hotels and tour agencies to stay afloat.