Malaysian Association of Tour and Travel Agents (Matta) secretary-general Nigel Wong told FMT that restarting local tourism in the later part of the year would worsen the hurt on the ailing industry.
He said some Matta members had managed to diversify their businesses since the pandemic hit, but he complained that red tape and inconsistent SOPs during the third movement control order (MCO) had increased the hardship for many.
The tourism, arts and culture ministry allows licensed travel agencies to venture into other businesses to sustain themselves.
“Many started pivoting towards delivery, logistics and a host of other businesses, but they were denied approval to operate by Miti (international trade and industry ministry) because they are still registered as travel agencies,” he said.
Wong said calls for the resolution of the issue, made to such agencies as the land public transport agency, computerised vehicle inspection centre and road transport department, had “fallen on deaf ears”.
The Malaysian Association of Hotels (MAH) said in a statement sent to FMT that it remained hopeful since the government had laid out a roadmap based on data and science to allow the tourism industry to plan ahead for its recovery.
However, it pointed out that the earliest reopening of tourism activities and interstate travels was still several months away.
“Stakeholders will argue that this is not a question of being patient, but rather survival,” the statement said.
“Having sustained losses for more than a year now, we will not be able to endure another six months and this will likely result in more hotels closing and more people losing their jobs if there is no additional assistance from the government.”
MAH said the industry required more targeted financial aid, especially with utilities, and a relaxation of conditions for statutory payments such as for licences and to the Employees Provident Fund. Banks should allow interest-free moratoriums, it said.
“The tourism and hotel sector, in particular, needs extended wage subsidies at least till the end of the year, and it is still hoping for a higher rate of 50% for those earning up to RM4,000 and 30% for those earning RM4,000 and above, to a maximum of RM8,000 a month.”
Malaysian Budget Hotel Association president Emmy Suraya Hussein said budget hotels were severely affected long before the enforcement of the third MCO. She blamed the inter-district travel ban.
“The MKN (National Security Council) only allows quarantine hotels to operate, but how many of us fall under that list? Many others have temporarily closed down and I foresee this continuing until October.”
Emmy Suraya called for higher electricity bill discount rates, saying the current 10% discount was insufficient to reduce the burden on budget hotels’ operation costs.
She said many budget hotels had yet to receive subsidies from the Wage Subsidy Programme 2.0, which was announced under the Kita Prihatin package last September.
Yesterday, Prime Minister Muhyiddin Yassin announced that the government was aiming for all economic sectors to reopen by December under its exit strategy.
This will involve four phases, with social gatherings, cross-border travels and domestic tourism falling under the final phase in October.
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