Budget 2022 timely to help revive tourism sector but more can be done, says Malaysian Association of Hotels

PETALING JAYA: Budget 2022 is timely to help revive the tourism sector but more needs to be done, says the Malaysian Association of Hotels (MAH).

"The various funds announced for upkeep and upgrade of tourism infrastructure as well as specifically for budget hotels... would contribute to the rebuilding of the tourism industry’s competitiveness," its president Datuk N. Subramaniam said in a statement on Friday (Oct 29).

"The industry is also looking forward to more details on the Penjana Tourism Financing and Bank Pembangunan Malaysia Bhd (BPMB) Rehabilitation Scheme funding that could be beneficial to stakeholders if made accessible at low or even zero interest," he added.

He was commenting on the measures announced by Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz under Budget 2022 aimed at reviving the tourism sector, which was badly hit by the Covid-19 pandemic.

A total of RM600mil will be set aside for Penjana Tourism Financing dan BPMB Rehabilitation Scheme.

Another RM600mil under the Budget is meant for wage subsidy to benefit 26,000 tourism industry employers and 330,000 workers who have suffered at least 30% revenue loss.

"The tourism industry is appreciative that the government has acknowledged the needs of the industry particularly to restart and rebuild with the extension of the targeted wage subsidy programme.

"This is crucial for the industry to rehire manpower and ensure the needs of its people are addressed," Subramaniam added.

He urged the government to consider increasing personal income tax relief for the year 2022 to RM5,000 instead of RM1,000 as announced under the Budget.

"On this the industry had, however, proposed for the amount to be increased to RM5,000 to encourage the spirit of 'Keluarga Malaysia' (Malaysian Family) with more family bonding activities, at the same time contributing to domestic tourism.

"The hotel industry had also requested for extension of service tax exemption to further add value to the spending power of the people at hotels, but this was not announced," he said.

Subramaniam also said that the respective state governments should introduce exemption of tourism tax for theme parks as announced for those operating in the Federal Territories.