KUALA LUMPUR (Jan 18): Local hoteliers said the RM15 billion Perlindungan Ekonomi dan Rakyat Malaysia (Permai) assistance package, which was just announced by Prime Minister Tan Sri Muhyiddin Yassin, had fallen short of expectations as the tourism industry continues to grapple with struggling businesses amid the ongoing Covid-19 pandemic and recently reimposed movement control order (MCO 2.0).

Malaysian Association of Hotels (MAH) chief executive officer (CEO) Yap Lip Seng said other than the 10% discount on electricity from January to March this year, no other assistance had been extended to the hotel industry.

"The moratorium on loans was again left in the hands of commercial banks and financial institutions,” he  said in a statement shared via WhatsApp this afternoon.

He added that while the Wage Subsidy Programme is being extended to other industries, the government again failed to improve the programme for the tourism industry that had been the most heavily impacted by the Covid-19 pandemic and more so by the recent MCO 2.0.

“A higher Wage Subsidy Programme (in terms of allocation) is much needed to keep hotels and the tourism business afloat, without which more will be forced to retrench.

"We have repeatedly proposed [to the government a] 50% wage subsidy for those earning up to RM4,000 and 30% for those up to RM8,000 in order for employers to retain jobs for the people. This is the only way to protect the people. This again has fallen on deaf ears,” said Yap.

He is of the view that the tourism industry is "being neglected again despite its contribution to the economy of the country, and is being left to collapse".

"Malaysia will continue to lose competitiveness and also talent, and along with it its capacity for recovery. With no clear direction and forward plans for the tourism industry, there is little hope of survival,” he said.

Under the Permai package, the government is offering an electricity bill discount of 10% from January to March 2021 to six tourism-related business sectors — hotel operators, theme parks, convention centers, shopping malls, local airline offices and travel agencies.

Other initiatives include a one-off cash assistance of RM500 for tour guides, taxi, school bus, bus, rental car and e-hailing drivers with a total allocation of RM66 million.