RETABLED 2023 BUDGET – HELP ABSENT, FOR RECOVERING
HOTEL INDUSTRY
Kuala
Lumpur – Malaysian
Association of Hotels (MAH) deeply appreciates the government, allocating a sum
of RM 250 million to promote the tourism sector. However, seeing as MOTAC is
targeting over 16 million tourist arrivals with RM49.2 billion in revenue for
the year 2023, we feel the allocated amount is insufficient as it constitutes
to less than 0.6% of the expected receipts.
Additionally, the
blanket method of allocation for the tourism industry may not fully reach
struggling sectors and address the industry’s needs. Case in point, we were
saddened to learn that there are no provisions to aid the recovery of our
struggling hospitality industry more so now, when the sector is facing
challenges on various fronts.
Hotels throughout
the country have had to contend with severe Electricity tariff hike early this
year that has resulted in a significant increase in their monthly operational
costs. The sector also had to cope with higher minimum wage and lower work
hours; as the hospitality sector is very labor-intensive, our industry is very
vulnerable to the legislation and have been especially affected by it further
stymying our recovery.
MAH hopes that the
government will acknowledge our industry’s plight and employ more defined aid
to our sector as we are far from recovery by considering the following
proposals:
- Moratorium for the new
electricity tariffs to hotels, theme parks and convention centres until the end
of 2023 as to provide us time to recover.
- Provide stimulus package for
hotels via a one-off financial aid or continuous added value programs.
- Introduce special tax allowance
or deductions in regards to hotel’s renovations and refurbishment post
covid-19.
- Fast track hotels application
for foreign workers.
- Regulation of Short-Term Accommodations
(STA) to ensure a level playing field and safety of guests.
- Collection of Tourism tax at
the country’s entry points to guarantee all inbounds are taxed and not
restricted to those that chooses to stay at legitimate hotels.
Lastly, MAH
welcomes the Visit Malaysia Year 2025 announced by the government. We hope that
in light of the auspicious year, the government will be keen to help our
flagging industry in these crucial 2-years interim as part of their preparation
for VMY 2025. MAH hopes with the aid of the government, we can provide the patrons
and tourists that visit us during VMY 2025 the best Malaysia Hospitality
experience we can offer.
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