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KUALA LUMPUR: The Malaysian Travel and Tourism Agents Association (MATTA) has urged the government to be proactive and develop an enhanced and specific rescue plan for travel and tourism agents in light of the latest Movement Control Order (MCO ) and the grim travel forecast. this year.
President Datuk Tan Kok Liang said that tourism businesses are currently in an extremely difficult situation due to the very fragile and uncertain business environment that is expected to continue until the end of 2021.
“Travel and tourism agents have been struggling with collapsing income and liquidity problems since the onset of the pandemic and government efforts have had no significant impact on this segment of the industry,” it said today in a statement. .
Tan said that tourism and travel agents were essential to the Malaysian economy, as most of these companies contributed significantly to the inbound traffic to Malaysia in the form of business and leisure travelers.
He said many agencies also provided crucial logistics services and maintained fleets of buses and other tourist vehicles vital to the country’s tourism infrastructure.
“Tourism has played an important role in the national Gross Domestic Product (GDP) and is the third largest contributor in previous years,” said Tan.
Industry contributed 14.1% (RM166 billion) to GDP in 2015, 14.5% (RM182 billion) in 2016, 14.6% (RM201 billion) in 2017, 15.2% (RM220 billion) in 2018 and 15.9% (RM240 billion) in 2019.
“By 2020, the Covid-19 pandemic had greatly affected the tourism industry with an estimated total loss of more than RM100 billion,” Tan said.
He said that while the hotel industry expected more hotels to close or terminate due to the second phase of MCO and continued border closures, more travel agents, especially those who own tour vehicles, are very likely to face the same fate as those. hoteliers.
“Tourism businesses are expected to suffer further losses and the government should provide an extension of the loan moratorium and enhanced wage subsidy programs until June 30, 2021. Exemptions in rental fees, insurance and legal licenses are also needed. to help especially those affected small and medium enterprises (SMEs) that have already had to spend a lot of cash just to survive the last MCO, ”he said.
MATTA also urged travel companies to seek consolidation and mergers. According to Tan, more than 5,000 travel companies are now in dire straits and the government must initiate rehabilitation programs as the situation will worsen.
He said allowing travel agents to close business facilities and operate from home and canceling mandatory Tour and Tour Improvement Course (TTEC) programs for travel companies were good gestures of support.
MATTA has urged travel agency employees to retrain during these difficult times.
However, the association expressed disappointment that the government did not allocate funds to train tourism workers in general, other than the 8,000 aviation workers as announced in the 2021 Budget.
“It is also imperative that the government resolve issues about deposits held by airlines and related service providers, make urgent corrections to the (outdated) Tourism Industry Act of 1992, and provide approval flexibility for the conversion of tourist buses in other categories in order to allow these buses to be used for other purposes; these are practical measures that the government needs to help, ”he said.
Tan said it was no longer “business as usual” under the Covid-19 pandemic and MATTA urged the various government agencies to make immediate policy changes to ease the financial burden on the worst hit industry in Malaysia. -Called
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