MAH: Budget timely to help revive tourism sector

PETALING JAYA: The RM1.6bil allocation is timely to help revive the tourism sector but more needs to be done, said Malaysian Association of Hotels (MAH).

“Various funds announced for the upkeep and upgrade of tourism infrastructure as well as specifically for budget hotels are timely, and will contribute to the rebuilding of the tourism industry’s competitiveness.

“The industry is also looking forward to more details on the Penjana Tourism Financing and BPMB (Bank Pembangunan Malaysia Bhd) Rehabilitation Scheme funding that can be beneficial to stakeholders if made accessible at low or even zero interest,” MAH president Datuk N. Subramaniam said in a statement.

He was commenting on the RM1.6bil 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 allocation will be set aside for the Penjana Tourism Financing and BPMB Rehabilitation Scheme.

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

Other allocation announced included RM30mil matching grant to 738 registered budget hotels for upgrading and maintenance purposes and special aid to 20,000 registered tourism businesses for three months, totalling RM85mil.

“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 needed and ensure the needs of its people are being addressed,” said Subramaniam.

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

“This is to encourage the spirit of ‘Keluarga Malaysia’ with more family bonding activities at the same time contributing to domestic tourism.

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

Subramaniam added that the respective state governments should also introduce exemption of tourism tax for theme parks as announced by the government for those operating in the federal territories.