MCO: Hotels in Malaysia expect to lose all revenue streams


Hotels in Malaysia are expected to lose all revenue streams with the implementation of another movement control order which restricts interstate travel.

Hotels in Malaysia are expected to lose all revenue streams with the implementation of another movement control order which restricts interstate travel.

Malaysian Association of Hotels (MAH) chief executive officer Yap Lip Seng said while the MCO is necessary, it will do further damage to the tourism and hospitality industry.

"With the implementation of restrictions based on MCO implementations, businesses are again expected lose all revenue streams, especially for tourism industry when all interstate travels are now restricted," he said.

The MCO will be implemented in six states namely Penang, Selangor, Kuala Lumpur, Putrajaya, Labuan in the Federal Territories, Melaka, Johor and Sabah.

The MCO will be enforced for 14 days until Jan 26.

Conditional MCO will be enforced in Pahang, Perak, Negri Sembilan, Kedah, Terengganu and Kelantan. The recovery MCO will be implemented in Perlis and Sarawak.

During this period, interstate travel is not allowed throughout the country.

Yap said the Government must support the industry and its people.

"With little or no revenue, businesses will not be able to retain its people, will not be able to pay salaries with no option but to let go of its employees," he said.

Yap urged the Government to introduce a wage subsidy structure of 50% for employees within pay structure below RM4,000 and 30% for those up to RM8,000.

"Industries need this to sustain, or else (employers would be) forced to retrench employees with immediate effect," he said.

MAH recorded a minimum of 6% hospitality workers being let go since last year, while the rest are either on a pay cut or unpaid leave.

Malaysia Budget Hotel Association (MyBHA) national deputy president Sri Ganesh Michiel said the MCO will give a huge impact towards the recovery period of the hotel and tourism Industry.

"We demand that the Government look seriously and act fast towards the issues that is faced or will be faced in the coming future by our association members, their employees and all tourism industry players," he said.

Ganesh said while he understood the need for the MCO, he hope the Government would assist the industry accordingly "before it’s too late".

"We also advise all of our members to be strict on the SOPs in preventing the spread of the Covid-19 virus," he said.
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