Hotel groups say not much for sector in Budget 2022

·2-min read
Tourists pictured taking a swim to cool down on a sunny day at a hotel in Teluk Bahang, October 26, 2021. — Picture by Sayuti Zainudin
Tourists pictured taking a swim to cool down on a sunny day at a hotel in Teluk Bahang, October 26, 2021. — Picture by Sayuti Zainudin

IPOH, October 29 — Malaysian Association of Hotels (MAH) president N. Subramaniam said Budget 2022’s allocations for tourism should be reviewed.

Subramaniam said some of the hotel industry’s request were not included in the Budget.

“The hotel industry had 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 and we hope that the government will reconsider this to boost tourism recovery,” he said in a statement.

He said the industry looked forward to more details on the Penjana Tourism Financing and BPMB Rehabilitation Scheme funding, which could be beneficial to stakeholders if made accessible at low or even zero interest.

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

“Industry stakeholders is hopeful for it to provide immediate funding and cash flow.”

He noted that the general tourism marketing and operational budget was not mentioned in Budget 2022.

“We hope that the government is allocating sufficient budget to promote and market Malaysia all over again as the choice destination amidst fierce competition with neighbouring countries,” he said.

He thanked the government on the announcement on the extension on the exemption of tourism tax and also the personal income tax relief for year 2022.

“However, on this the industry had proposed for the amount to be increased to RM5,000 to encourage the spirit of “Keluarga Malaysia” with more family bonding activities at the same time contributing to domestic tourism,” he said.

Subramaniam also hope that the exemption on entertainment tax in federal territories would be given to all other state governments as it will not only benefit operators particularly theme parks, but also the people.

Separately, Budget Hotel and Business Malaysia Association (MyBHA) deputy president Sri Ganesh Michiel said that the Budget 2022 would not have a positive long-term effect on the recovery efforts of the hotel industry.

“However, in restoring the industry, the government should be able to introduce a better, friendly and effective budget for the hotel industry in particular and the tourism industry in general which is a viable Industry that has been affected in ensuring sustainability towards driving the recovery of the hotel industry in the year of 2022.

“The government needs to pay more attention to the hotel and tourism industry which has been affected before the outbreak of the Covid-19 in Malaysia at the end of 2019 and it will take a long time to recover even if the pandemic has been successfully controlled or eliminated,” he explained.

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