MAH thanks the government for initiatives that will help the tourism industry recover

 By Sharen Kaur - Published in NST Property, October 29, 2021 

Malaysian hotels and resorts may fare better in the future. File photo of Pangkor Laut Resort

sharen@nst.com.my

The Malaysian Association of Hotels (MAH) welcomes the government's decision to extend the targeted wage subsidy programme, which will aid in the restart and rebuilding of the tourism industry.

According to its president, Datuk N. Subramaniam, MAH is pleased that the government has recognised the industry's needs.

"This is crucial for the industry to rehire manpower needed and ensure the needs of its people are being addressed," he said. 

Among the other items requested by the industry and announced in Budget 2022 was an extension of the exemption from tourism tax and personal income tax relief for the fiscal year 2022. 

An extension of the service tax exemption would add value to people's spending power at hotels and boost tourism recovery.

Subramaniam said the association hoped that the government would reconsider some other items on its wishlist that were not included in Budget 2022, such as an extension of the service tax exemption, which would add value to people's spending power at hotels and boost tourism recovery.

"Various funds announced for the maintenance and upgrade of tourism infrastructure, as well as specifically for budget hotels, are timely and would contribute to the rebuilding of the tourism industry's competitiveness," he said.

Subramaniam said the industry is also eager to learn more about the Penjana Tourism Financing and BPMB Rehabilitation Scheme funding, which could be beneficial to stakeholders if made available at low or even zero interest.

According to him, industry stakeholders are hopeful that it will provide immediate funding and cash flow.

Meanwhile, Subramaniam said that, while the general tourism marketing and operational budgets were not mentioned in the announcement, industry players hoped that the government would allocate a sufficient budget to promote and market Malaysia as a preferred destination in the face of fierce competition from neighbouring countries.

Grants and promotional funding introduced to encourage tourism, arts and culture initiatives, and tax breaks for events are welcomed, he said.

"The government has considered the entertainment tax issue raised by the industry, and the announced exemption in all federal territories will benefit not only operators, particularly theme parks, but also the people. We hope that other states will do the same," it said.