sharen@nst.com.my
Tan Sri Syed Mohd Yusof, a well-known Malaysian businessman, and an investor wants a resurgence in Malaysian tourism to ensure its long-term viability.
He said that despite the reduction of lockdowns, most hotels are still recording occupancy rates below 10 per cent.
Syed Yusof believes that the tourism business may not fully recover from the consequences of Covid-19 for several months.
"Due to the ongoing pandemic, travel restrictions within the country, and the closure of international crossings for an extended period have resulted in very low occupancy levels for most hotels in the city centre," according to Syed Yusof, also known as "Jojo".
"We are in desperate need of assistance in order to rebuild and emerge from this current situation as quickly as possible. To begin, the government could open the Singapore border, which would have a significant positive impact on hotel occupancy, particularly in Melaka and Johor," he told NST Property.
Syed Yusof said he was pleased that the government had finally decided to allow tourism to Langkawi.
A domestic travel bubble launched for persons who have been fully vaccinated against Covid-19 was opened in Langkawi on September 16, welcoming 3,200 guests.
Syed Yusof asserted that this is good news for the local tourism industry, particularly hotel and resort operators in Langkawi.
"The arrival of tourists will increase hotel occupancy in Langkawi. Certain boutique hotels may be able to reach occupancy rates of up to 80 per cent," he said.
Syed Yusof said that because of low occupancy, hotel owners and operators have greater expenses than income.
"As owners, we have to top up monthly just to meet the costs so that we could still operate," he said.
He predicts that the current state of affairs will continue until travel restrictions and lockdown measures are lifted worldwide.
According to the Malaysian Association of Hotels (MAH), the country's hotel industry has lost RM9 billion in income in the first seven to eight months of this year.
If no interstate travel is allowed by December 31, 2021, it might reach RM10 billion.
The industry reportedly suffered an RM6.5 billion sales loss in 2012.
A total of 120 hotels have shuttered, either temporarily or permanently, according to MAH, and this number could rise if the economy continues to stagnant.
The Covid-19 pandemic, according to MAH president Datuk N Subramaniam, has crippled the travel and tourism industry, including tour operators and hotels alike.
When "Visit Malaysia 2020" was announced last year, hoteliers anticipated a significant increase in revenue.
Malaysia had budgeted for 30 million tourists and earnings of $21.5 billion. However, over 3.5 million people who worked in tourism were affected because of the virus, which put a damper on things.
Syed Yusof urged the government to reexamine the moratorium, with low or no interest for businesses, as a method to assist hoteliers.
He also called on national utility company Tenaga Nasional Bhd to reduce by up to 50 per cent of the monthly energy bill.
"This will make it easier for companies to function in the current environment. Since the hotel rooms are empty, there should be reductions in the assessment tax and quit rent. When circumstances were good, the industry provided the government with more than RM80 million in revenue merely from collecting the assessment rate and quit rent. It's high time we get some help," he said.
According to Syed Yusof, the food and beverage (F&B) industry is in a similar predicament, with operators barely able to stay afloat.
Despite additional states entering Phase 2 of the movement control order, the F&B industry has remained slow because consumers are still wary about eating out, he said.
"Can you image what we are facing when it's hard to break even or even earn a profit?" he exclaimed.
Syed Yusof is a successful businessman with over 40 years of expertise in a wide range of industries, including real estate development, construction, media, entertainment, hotel management, food & beverage, banking, and information technology.
Hard Rock Cafe, the Concorde Hotel, and Nobu are just a few of the respected businesses and brands he's established in the country.
Hard Rock Cafe and Nobu have opened in Malaysia thanks to his investments in the local business community through boutique developer Venus Assets Sdn Bhd, of which he is the chairman.
Four Seasons Place, Kuala Lumpur, next to the Petronas Twin Towers, was opened in 2018 by Venues Assets, whose controlling shareholders are Syed Yusof, the Sultan of Selangor Sultan Sharafuddin Idris, Datuk Ong Beng Seng, and Datuk David Ban.
The Four Seasons Place is a 65-storey building comprising the five-star Four Seasons Hotel Kuala Lumpur, Four Seasons private residences with 242 residential units, and Shoppes @ Four Seasons Place.
Currently, he sits on the Board of several public listed companies.
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