Sarawak hoteliers call for 50% wage subsidy, utilities discount

 

Sarawak hotels have suffered a loss of business, with Kuching, Sibu and Miri declared red zones. (Facebook pic)

KUCHING: Hoteliers in Sarawak hope the state government will consider introducing its own wage subsidy programme to help the industry.

John Teo, chairman of the Malaysian Association of Hotels, Sarawak, said the measures in the state relief aid programme were insufficient to keep the hotel and lodging house businesses afloat during the Covid-19 pandemic.

Among the measures announced by chief minister Abang Johari Openg was a waiver of licence fees for hotel and lodging this year, involving 17,300 rooms, benefiting over 340 operators.

He also announced that domestic, commercial and industrial consumers will be given 5% to 25% discounts for electricity bills and 10% to 25% discounts for water bills.

John Teo.

However, Teo said the waiver of licence fees for hotel operators comes to only RM20 per room,which will not help much.

“If an operator has 10 rooms, it is only RM200 (waived) per year,” he told FMT. “What we really need would be a 50% wage subsidy for the employees as well as 50% discounts on water and electricity bills.”

He said Sarawak hotels had been suffering for a year. “We doubt there will be light at the end of the tunnel. I guess not for this year.

“With borders closed and three major towns – Kuching, Sibu and Miri – currently Covid-19 red zones, domestic travel is still impossible, what more foreign tourists?

“Without the assistance granted by the government, we are wondering how many hotels will just go bankrupt by the end of the year.”

He said most hotel operators need at least 50% room occupancy to cover expenses. “I don’t think we can reach that this year despite the vaccine for Covid-19 arriving soon,” he said. - FMT