Tourism Comes To A Standstill
Tourism Comes To A Standstill
TOURISM COMES TO A STANDSTILL
“Tourism Industry Crippled As Government Issues Movement Control Order”
Putrajaya (17 March 2020) – The movement control order issued by the Government on 16
March 2020 is seen as a much needed move to control the spread of Covid-19 but it comes
with a hefty price tag. The order only allows essential services to operate as usual for the period
of 18 to 31 March 2020 and that does not include hotels. The hotel industry was not addressed
specifically and is given only one day to be ready for the control.
In the Tourism Recovery Action Council (TRAC) with the Ministry of Tourism, Arts and
Culture (MOTAC) earlier this afternoon, the Malaysian Association of Hotels (MAH) sought
for clarifications on hotel operations during this period, especially hotels with in-house and
long-stay guests and as to what services are allowed for these guests.
According to MOTAC, pending approval from the Malaysian National Security Council, hotels
are allowed to operate on limited services, that includes allowing in-house guests whom had
checked-in (before 18 March 2020) to stay until its intended check-out date. In-house guests
however, are advised to remain in the room throughout the movement control period. Other
services in the hotel on the other hand, are not allowed to operate except for food & beverages
but only for room service. No new check-ins are allowed from 18 till 31 March for all, including
In the TRAC meeting, Yap Lip Seng, Chief Executive Officer of MAH also presented the
updated cancellation report of hotel room bookings as of 16 March, amounting to 170,085
room nights, valued at RM68 million. “The cancellation of bookings represents the current
impact caused by the Covid-19 but we are more concerned with the loss of demand for the
coming months. We foresee that the losses will double by end of the year,” Yap said.
MAH also presented a series of proposals for the second economic stimulus, partly to assist
tourism rebound but more focused on easing cash flow of industry stakeholders. Key proposals
include reduction of employers’ contribution to EPF, increasing discount for electricity to 30%,
extending the discount for water, waiver of quit rent and assessment for tourism properties and
also a monthly payroll subsidy for employees earning RM2,000 and below.
“We are also repeating our call for the Minister to review the rate of Tourism Tax to RM1 from
existing rate of RM10, which is within the power of the Minister (of Finance) under the
Tourism Tax Act 2017,” Yap added. The proposals are to address current burden faced by the
industry, as well as to plan ahead mid and long term for tourism recovery.
Apart from requests presented to the Government, MAH is also pursuing negotiations with
local service providers and suppliers to hotels, to extend a fair discount to hotels for this period.
“We are in talks with key vendors such as Astro, for a reduction in fees and discount for the
period up to December 2020. Hotels are currently paying them for empty rooms and services
not utilised,” explained Yap.
If you require any other information pertaining to the hotel industry, statistics, industry
concerns or any other related subjects, please do not hesitate to contact the Chief Executive
Officer of MAH, Yap Lip Seng at email@example.com or +6012 280 0300.
About the Malaysian Association of Hotels (MAH)
Malaysian Association of Hotels (MAH) is the umbrella body for hotels in Malaysia formed in 1974 and initially established by a group of concerned and dedicated hoteliers to bring about a more dynamic hospitality industry aimed at building a workforce of highly skilled, innovative and disciplined individuals. Its long-term goal was to enhance the efficiency of the hospitality industry, thus, bringing about a more dynamic Malaysian hospitality industry. MAH, as the official national network for the hotel industry, represents more than 900 hotels throughout Malaysia supplying a total of 155,287 rooms which is about 65% of the total number of hotel rooms available as guest accommodation in this country. With 13 chapters across the nation, MAH acts as a voice of the industry, working as one body to promote, protect, represent and advance the interests of its members.
MAHTEC Sdn Bhd commenced its fiscal year in 1998 to profile MAH as a human resource development provider and to upgrade the skills and knowledge of staff-in-service in the industry. MAHTEC is the training arm of the Association specializing in developing quality human resources in the hospitality industry. Highly specialized in the areas of Hospitality Skills Training and Managerial Development Training, all programs are facilitated by experienced and qualified Trainers through workshops and practical session.