Local hotel industry to lose over RM10bil by end-2021?

By Sharen Kaur - Published in NST Property on August 24, 2021

sharen@nst.com.my

The Malaysian Association of Hotels (MAH) estimates that the local hotel industry has lost around RM9 billion in revenues in the first seven to eight months of this year.

This could exceed RM10 billion by December 31, 2021, if interstate travel is still not allowed.

Last year, the industry lost around RM6.5 billion in revenues.

According to MAH, about 120 hotels have closed down either temporarily or permanently up to now and this may increase if the economic situation remains stagnant.

The tourism industry is undoubtedly one of the most impacted by the Covid-19 pandemic, with effects crippling travel and tour operators and hotels alike, said MAH president Datuk N Subramaniam.

"Acknowledging the hardship of the people in the industry, MAH since the early days of the pandemic has been lobbying for support and assistance from the government, including various initiatives to boost domestic tourism. It is unfortunate, however, given the currently extended lockdown and travel restrictions imposed, the hotel industry is still unable to generate sufficient income to sustain, directly impacting the livelihoods of its workforce," he said in a statement.

MAH has formed a Tourism Recovery Committee comprising industry experts to formulate strategies that would drive the impending recovery of the tourism industry.

Apart from working with the Ministry of Tourism, Arts & Culture and Tourism Malaysia, the committee is working on marketing and promotion projects both for domestic and international markets.

To further support the industry, the association launched its MAH Cares programme, allocating RM200,000 worth of food aid through its State Chapters, distributing essentials and food supplies to those in need in the hotel industry.

Subramaniam said the initiative will benefit thousands of families with necessities and essential items.

This initiative will also raise awareness of the need of the industry, and encourage both public and private sectors to support the tourism and hotel industry of Malaysia, he said.

One of the main sponsors for the MAH Cares programme thus far is Yeo Hiap Seng, a household food and beverage brand.