The Malaysian Association of Tour and Travel Agents (Matta) said it had proposed several “recovery measures” to the government to tackle the sudden and significant drop in tourism caused by the coronavirus outbreak.
This comes in the wake of an announcement by the finance ministry that it had been tasked to develop an economic stimulus package to deal with the fallout from the coronavirus outbreak.
In a statement, Matta president Tan Kok Liang said their proposals included increasing promotion and marketing initiatives for domestic tourism, reviewing the tourism tax rate and easing the requirements for matching grants under “Galakan Melancong Malaysia”, a RM5 million fund to support promotional activities.
“Other measures proposed are meant to increase marketing efforts to correct any mistaken impression that Malaysia is not safe, to encourage cross-border tourism, and to ease the visa requirement, especially for Indian tourists, to cover the shortfall of tourists from China.”
Chinese nationals make up a significant number of tourists to Malaysia and in 2019, China’s share of tourism receipts hit RM12.3 billion.
This year, it has been reported that Malaysia is aiming to attract 3.48 million tourists from China for Visit Malaysia 2020.
Tan added that big data should be harnessed to develop strategies which could be applied immediately to keep the tourism industry robust and flexible.
He said that Matta, along with key industry partner the Malaysian Association of Hotels, had earlier proposed other strategies, including holding more government events and functions in hotels, easing cross-border clearance to boost overland tourism as well as temporarily waiving permit and licence fees.
“Matta is hopeful that the economic stimulus package to be announced soon would far exceed the RM8.1 billion growth plan rolled out in 2003 to help Malaysians mitigate the impact of the SARS outbreak, or the RM60 billion stimulus package announced in 2009 to invigorate vital sectors in the face of the global economic downturn.
“The various ministries could reduce or waive contributions and taxes such as those mandatory for the Employees Provident Fund, Human Resources Development Fund, tourism tax, road tax, and fees for various company licences and vehicle permits.”
Tan added the tourism industry, which employs over 3.5 million people, is now in dire straits and needed help urgently.
Tourism relief fund needed
Meanwhile, Socio-Economic Research Centre (SERC) executive director Lee Heng Guie said the government should set up a tourism relief fund and give tax relief to hospitality and tourism players.
“Banks can also provide three-to-six month debt servicing relief to those in the industry,” he said in a statement, adding the government should also give a one-year tourism tax exemption.
“The government can partner with malls and tour operators to encourage inbound tourism, family outings and shopping days on Fridays, the weekends, holidays and the eve of public holidays.”
This, he said, could be done by giving out vouchers and discounts for tourism activities.