Less than expected, more is needed - says Hotels Association on stimulus package

The Malaysian Association of Hotels (MAH) said that the stimulus package announced by the Prime Minister today is below what the industry expected to absorb the Covid-19 impact.

MAH president Kamaruddin Bahrain said they had proposed a minimum of RM1,000 payroll subsidy to hotel employees or a minimum of the equivalent of 50 percent of employee's monthly salary for a period of six months.

"The announced payroll subsidy of RM600 per month for three months, for employees earning below RM4,000 a month, is needed but is below what the industry expected.

"The hotel industry in particular, had earlier proposed a minimum of RM1,000 per employee, or a minimum equivalent of 50 percent of employee’s monthly pay for a period of six months.

"This is in response to a much lower occupancy rate projected for the coming months looking the situation worldwide," he said in a statement.

The association projects an average occupancy for Malaysia of nothing more than 25 percent in June, that is if the movement control order ends on April 14, he said.

According to MAH, 2,041 employees of the industry had been laid off due to economic pressures and the order, while 9,773 are given unpaid leaves, and another 5,054 have taken pay cuts.

MAH also said it had called for banks to waive interests on top of the six-month moratorium, and for EPF to reduce employers' EPF contribution in which but were not included in the package.

“We will need to work with what is given now, and we will continue to engage and update the government on the situation on the ground, if the initiatives are helping or if hotels are still forced to close given such unprecedented economic pressures,” added Kamaruddin.

He said the hotel industry will continue to face mounting challenges as other countries are in a partial lockdown which impact the tourism industry.

However, the Tourism, Arts and Culture Minister Nancy Shukri, in a statement, believed that the stimulus package will offer benefit to the tourism industry.

"No one is left behind in the Prime Minister's announcement just now. I believe the initiative will ease the burden (of industry players) and give them motivation to plan and restrategize to recover the economy, notably the tourism and culture," she said.

Muhyiddin today announced the package totalling RM250 billion to help Malaysians face the Covid-19 pandemic and the after-effects of the movement control order.  - Mkini