KUALA LUMPUR: The Malaysian Association of Tour and Travel Agents (Matta) has urged the government to extend the loan moratorium to a further six months for the tourism industry.
This is in recognition that the industry is one of the significant job providers and important economy contributors to the country.
Matta president Datuk Tan Kok Liang said many tourism players had been deprived of income since March this year.
"Against a backdrop of recession and unemployment, being wholly dependent on domestic tourism will not be sufficient to sustain related businesses and individuals working in this industry,' Tan said in a statement today.
"As many tourism businesses derive a large portion of their earnings from international tourists, how are they to survive if borders stay closed? he asked.
Tan said with no firm direction on the easing of borders, it was only appropriate to request the government for an extension of the moratorium rather than industry players seeking an extension to their respective banks on their own which will likely be turned down especially after Prime Minister Tan Sri Muhyiddin Yassin had anounced that the industry could take four years to recover.
"Individual borrowers working in the hospitality and tourism industry should also be given a six-month moratorium extension as many are currently on pay cuts, unpaid leave or have been retrenched.
"Many do not have the ability to repay their loans under current pressing circumstances and the rate of unemployment is rapidly increasing," he added.
Tan said the Ministry of Tourism, Arts and Culture had estimated the losses suffered by the tourism and culture industry amounting to some RM45 billion with about one million industry workers expected to lose their jobs this year.
"The tourism industry's collective inability to service its debts is due to external forces beyond its control," he said.
Tan said in this instance, the industry had called on the government to take proactive actions to intervene rather than leave the decision to the various banking institutions which will make decisions based on their terms of industry risk assessment and maximise shareholders wealth.
"To effectively revive the tourism industry specifically towards the domestic segment, Matta is doubling its effort to push for packages with attractive rates to cater to the new travelling environment with safe and yet enjoyable new experience," he said.
Tan said the biggest challenge for travel agents in domestic tourism was that Malaysian travellers often opt to "go on their own" not realising that a personalised travel experience tailored by travel agents often result in time savings, convenience and peace of mind as licenced tour operators are always 24/7 ready for their client during their tour stay.
"We are thankful for the loan repayment moratorium granted by the financial institution since April 2020 as it is significant to keep the industry afloat.
"The government, together with Bank Negara Malaysia, must step in. It is hoped that the government and relevant bodies will make it a priority and look into these crucial requests to assure progress in the recovery of Malaysia's travel and tourism industry," he said.