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'Govt aid not enough for budget hotels'

KUALA LUMPUR: Budget hotel operators are appealing to the government and Tourism, Arts and Culture Ministry to come up with targeted assistance for them.

Many expressed disappointment with the aid given to them so far, which they said was not friendly towards the industry.

The latest move, to place foreign workers at hotels, they said was like rubbing salt into their wound.

"We have been suffering for almost a year since the Covid-19 pandemic hit the country. The latest move, which is said could indirectly help the business continuity of hotel operators hit by the pandemic, is not helpful," said an industry player, who wished to remain anonymous.

He said the amount of RM200 per person per month was ridiculous.

"How did they (the government) arrive at the amount, which is equivalent to between RM6 and RM7 per day. We might be desperate for money, but the amount is absurd. We are hotels and not hostels. Our properties were designed as hotels.

"Is RM200 per person per month enough to cover everything, including the electricity, water, cleaning, and other costs?"

He said should those under quarantine damage the premises, the hotel operators would have to bear the cost.

Instead of paying RM200 per month per person, the amount should be at least RM50 per night per person, he said.

Recently, the ministry said that it was working with the Department of Labour Peninsular Malaysia to temporarily house foreign workers in hotels, under the Workers' Minimum Standards of Housing and Amenities Act 1990 (Act 446).

In a statement, it said the decision was reached during a special session of the National Security Council on Covid-19 management on Jan 26.

Another budget hotel operator who also wished for anonymity, urged the government to allow interstate travel, as it could boost the industry.

"Not only is the industry suffering, but also tour bus operators and tourist guides.

"As most sectors are allowed to operate, maybe it is time for the government to allow interstate travel."

He said the government must assist the industry, otherwise many of them would have to cease operations.

He added that the RM5 billion allocated under the Special Relief Fund was not helpful as banking and financial institutions regard the industry as high risk.

"Therefore, the government needs to come up with something to help us."

Malaysia Budget and Business Hotel Association (MyBHA) president Emmy Suraya Hussein said that should the Movement Control Order (MCO) be extended after Feb 18, more hotels would cease operations.

She added that since the implementation of the MCO last year, about 33 per cent of budget hotels had ceased operations permanently or opted for temporary closure.

The situation was made worse by the interstate travel ban.

"About 10,000 employees were laid off, took unpaid leave, or resigned," she said, adding that the data was based on over 2,000 MyBHA members.

Emmy said the association hoped the government would allow interstate travel as it would help the tourism industry via domestic travellers.

"Being the most affected industry but the last to recover, we hope the government will continue to assist us by giving discounts for our utilities. We hope the wage subsidy programme can be doubled."

Emmy said the association hoped the local authorities could waive the fees for business licences, quit rent and assessment tax for this year.

"With vaccines to be made available soon, we hope that the industry can see a bright light by year end."

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