PETALING JAYA: Tourism and hospitality groups have heaved a sigh of relief over Putrajaya’s Kita Prihatin economic stimulus package, saying it will ease the burden of companies in paying salaries during these trying times.
“Any help is a relief for us as we are still suffering. The borders remain close to foreign tourists and this is affecting our sales,” said Association of Hotel Employers president Christopher Raj.
Raj said the wage subsidy package under Kita Prihatin will help in paying salaries while revenue derived from local tourists will go towards meeting the cost of day-to-day operations.
He said discounted rates are being offered to woo domestic visitors.
He said hotels and resorts in Penang, Langkawi and Pangkor are 50% to 90% full during weekends but during weekdays, occupancy is poor as people return to work.
“Although business has picked up during weekends, the rates offered are quite low, so the wage subsidy programme is of great help,” he said.
Under Kita Prihatin, the wage subsidy will be provided for up to three months at a rate of RM600 a month for each employee, with a maximum of 200 employees a company.
The programme is open to companies that had registered with the Social Security Organisation (Socso) by Aug 31. New applicants who have not received the subsidy are also eligible and will receive the subsidy for up to six months.
Malaysian Association of Hotels CEO Yap Lip Seng said the special initiatives under the new stimulus package highlighted the need to assist heavily impacted industries, particularly those involved in tourism and hospitality.
“The government recognises that the tourism industry cannot sustain on its own yet given extended border restrictions and uncertainties amid the Covid-19 pandemic,” he said.
Yap said that while the industry had requested more assistance, including higher wage subsidies, utility discounts and special grants, it appreciates the government’s decision to extend the wage subsidy programme and easing of its condition on Socso registration.
Malaysian Association of Tour and Travel Agents (Matta) president Tan Kok Liang said the extension of the wage subsidy programme from October to December is a short-term relief for the hospitality industry.
“As the industry is suffering, the subsidy will help us to maintain our staff and pay their salaries,” he said.
Tan also said operators are seeing a slight increase in local tourists at beach and hiking resorts.
“Perhaps, during the movement control order, they were locked down for too long and are now enjoying open spaces and greenery,” he said. -FMT