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Langkawi tourism businesses flounder

TOURISM players heaved a sigh of relief when Malaysia's international borders reopened on April 1 after two bleak years.

Langkawi — Kedah's tourism jewel — took a severe beating during the Covid-19 pandemic, with the number of inbound travellers falling by more than 70 per cent last year. This was a huge blow as tourism receipts accounted for almost 90 per cent of the island's economy.

Sultan of Kedah Sultan Al Aminul Karim Sultan Sallehuddin Sultan Badlishah had, in March, called for the state government to rejuvenate Langkawi's tourism sector and develop domestic tourism across Kedah to ensure the industry's sustainability.

Noorsholehati Osman, who has been running a 24-room budget motel in Kuah town for 10 years, has many reasons to rejoice.

However, for small tourism players like her, relief will not be instant. Many such "mom and pop" establishments are struggling to find their footing after massive setbacks brought upon by the pandemic.

"I still have outstanding bills to utility companies and assessment tax arrears to the local council. Not to mention the business taxes that we need to report soon," Noorsholehati said.

While she did receive a one-off Geran Khas Prihatin of RM3,000 from the federal government in the early stages of the pandemic, it was soon exhausted settling outstanding bills.

The reopening of Langkawi to domestic travellers last September, followed by the Langkawi International Travel Bubble two months later, gave her a lifeline.

Yet, revenues in the past seven months were not sufficient to recoup the massive losses inflicted by a series of lockdowns during the pandemic.

Noorsholehati, however, can count herself among the luckier ones.

The fact that she has no business loan to service enabled her to retain the property, and her children helped keep the business running.

She only has to look at the motel across her outlet for comparison.

The motel, which had been running for eight years prior to the pandemic, has since closed.

A swathe of motels and souvenir shops in Kuah town and Pantai Cenang are deserted, and are awaiting new tenants.

It is learnt that dozens of budget-stay operators in Pantai Cenang are in high debt and some have winded up.

Budget-stay providers also have a new headache to contend with in the form of direct competition from four-star and above hotels.

Previously out of reach to all but the wealthy, these hotels have since offered massive discounts, with some offering room rentals from as low as RM600 per month.

"We can't afford to compete with them. Our rates are low enough as it is. If we slash them further, we won't be able to cover our operating costs," said Noorsholehati.

One homestay operator in Kuah, who wished to be known only as Ahmad, shared her sentiment.

"There is no way we can compete with the rates offered by the hotels. We can't sustain our business like this."

In Dataran Lang, the dozen or so souvenir shops left standing are similarly struggling.

"Most outlets here used to operate from 9am to midnight, but with the reduced passenger ferry trips, many close by 7pm.

"I have no choice but to open until 10pm as I need the money to support my children's education," said stall operator Hartini Harun, 45.

The mother of three is banking on things improving after Hari Raya Aidiladha this month.

However, with the passenger ferry frequency not likely to be increased without government intervention, Haritini and tourism players here have to dig in and wait it out.

The situation also spells trouble for some 300 car rental operators in Langkawi, who have a combined fleet of more than 7,000 vehicles.

Langkawi Car Rental Association president Rosli Ahmad said the passenger ferry service was the main lifeline for car rental companies here, apart from travellers arriving on flights.

With passenger ferry frequency dropping from a dozen trips during pre-pandemic times to just two trips each from Kuala Kedah and Kuala Perlis daily, they are bracing for a bumpy ride ahead.

"Many of us exhausted our savings jump-starting our businesses in September. We spent a fortune servicing and replacing parts for the vehicles, which were left idle for two years," Rosli said, adding that the renewal of road tax and insurance was costly.

He said many companies were struggling to renew their permits, which cost more than RM2,000 per vehicle.

Many, he said, had ceased business during the pandemic. Some even disposed of their fleet at far below the market value.

"Many companies are behind by up to five months in hire-purchase instalments.

"On average, the members are paying RM700 a month in instalment for each car. This means that those with 10 cars have
a commitment of RM7,000 for the loan alone, not to mention workers' salary and maintenance costs."

Rosli said businesses hoped to improve their situation by next month until February next year when the number of inbound travellers is supposed to pick up.

"But with just two passenger ferries arriving from Kuala Kedah and Kuala Perlis each daily, we fear recovery will be slow.

"We are stuck in a rut. We can't move forward or backwards."

He urged the government to reinstate the loan moratorium, which ended in March, for the association members.

"Unless the ferry service frequency is fully reinstated by next month, a six-month moratorium is the only hope we have for some breathing space."

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