Provide tax breaks to revive tourism industry, govt told

 

The Malaysian Association of Hotels says the industry needs more financial assistance to restart and restore competitiveness and rebuild its manpower.

PETALING JAYA: Grants, soft loans and tax incentives are needed to revamp and revive the tourism industry, says the Malaysian Association of Hotels (MAH), which hopes the government will look into these in Budget 2022.

MAH chief executive officer Yap Lip Seng said the hotel industry needs more financial assistance from the government to restart and restore competitiveness and rebuild its manpower.

Previously, finance minister Tengku Zafrul Aziz said the country’s latest economic growth forecast would be announced when Budget 2022 is tabled on Oct 29.

Yap said that after sustaining losses due to the pandemic, the tourism industry, especially hotels, would not fully recover until international tourism resumed.

He said the tourism industry was very competitive and hotels faced high reinvestment and operating costs.

“Wage support must continue for the tourism industry not only for its current manpower but also to stimulate new hiring,” he said.

He also suggested that the government encourage domestic tourism by increasing personal income tax relief spending to RM5,000 per year and introducing corporate tax incentives. Currently, taxpayers can claim up to RM1,000 for use of tourist accommodation or attractions.

Yap said the marketing budget should increase on a macro-level to boost Malaysia’s tourism competitiveness at Asean level.

He also said policies and regulations should be relaxed for operators and consumers, as it could help the industry to cushion past losses.

“These include business licensing, entertainment, liquor, and music royalty fees, all items that do not compromise safety and security,” he said.

Yap also said the government should address immigration requirements for key markets, such as China and India.

He said Malaysia had been suffering from a slowdown in Chinese arrivals even before the pandemic, considering China has about 160 million tourists worldwide.

“With technology, visa-on-arrival for these markets can easily be implemented and controlled (to encourage them to visit),” he said. - FMT