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PETALING JAYA: Local tour operators have described Budget 2021, which they expected to revive the sector severely affected by Covid-19, as not living up to their expectations.
Malaysian Tourism and Travel Agents Association (MATTA) Chairman Datuk Tan Kok Liang said the allocation under the Budget was “inadequate to boost the tourism industry.”
“Given the vulnerable and fragile situation of the industry, the 2021 Budget does not take into account the well-being of 3.6 million tourism workers and SMEs.
“It is inevitable that the industry will contract drastically,” he said.
Tan urged affected tourism workers to seek employment in other industries under the employment and recycling initiatives proposed in the Budget.
Malaysian Hotel Association Executive Director Yap Lip Seng said he was deeply concerned about the lack of immediate assistance for industry players.
“There was little mention of sustaining tourism businesses other than the extension of the wage subsidy scheme to the same amount of RM600 per employee per month,” he said.
Welcoming the exemption from the HRDF tax for six months, the wage subsidy, Yap said, was insufficient as the hotel industry had lost nearly 80% of its business amid the pandemic.
“Without increased cash assistance for businesses and leaving the loan moratorium to the discretion of financial institutions and commercial banks, industry stakeholders will be left stranded and forced to make tough decisions, as well as take action. drastic to survive, “he said. Council president Uzaidi Udanis said that many small tourism businesses would not benefit from the announced incentives.
However, he praised the government’s initiatives to promote ecotourism and heritage tourism.
“This would create new job opportunities for those in the tourism segments,” he said, adding that operators should also consider digitizing their businesses.
The 2021 budget also allocated RM35 thousand, compared to RM25 thousand last year, to the Malaysian Health Tourism Council to promote the country’s medical tourism industry.
The allocation of RM50 thousand was also announced for the maintenance of tourist facilities throughout the country.
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