Tourism players welcome assistance but say initiatives fall short of expectations

PETALING JAYA: Local tourism operators said Budget 2022 could have done more to stimulate the tourism sector, considering the devastating impact of the Covid-19 pandemic on the industry.

Malaysian Association of Tour and Travel Agents (MATTA) president Datuk Tan Kok Liang said the Budget was not enough to help with tourism recovery in the country.

“The initiatives fall short of our expectations to rehabilitate and stimulate domestic travel,” he said.

Tan, however, welcomed the initiatives to protect the livelihoods of tourism workers, such as the targeted wage subsidy.

“We welcome the targeted assistance to protect the tourism work force through the extension of the wage subsidy programme, while waiting for the gradual reopening of border for international tourists,” he said.

He also lauded the Malaysia Digital Nomad initiative and environmental preservation measures that will boost ecotourism.

However, Tan said the RM1,000 individual tax relief for tourism expenditure won’t be enough to encourage Malaysians to travel domestically.

“There is also no tax incentives for local companies carrying out incentive trips or holidays for their staff within the country to boost domestic travel,” he noted.

Malaysian Budget and Business Hotel Association (MyBHA) deputy president Sri Ganesh Michiel said Budget 2022 should have focused more on the sustainability of tourism businesses instead of recovery.

“Overall, the allocation won’t be able to help tourism and hotel operators to sustain their business,” he said.

Malaysian Inbound Tourism Association (Mita) president Uzaidi Udanis welcomed the RM60mil allocation to boost promotional activities and encouraging domestic tourism.

“Let’s be realistic, we need to do a lot of promotional activities to increase tourism activities, and we need to rely on domestic tourism.

Industry leaders: Tan (left) and Sri Ganesh.

“I believe this will be the right strategy in the recovery of the industry,” he said.

Budget 2022 also allocated RM20mil to the Malaysia Healthcare Tourism Council to promote the country’s medical tourism industry.

Also announced was a RM50mil allocation for upgrading of tourism infrastructure.