KUALA LUMPUR: The Malaysian Association of Hotel Owners (MAHO) is worried that more hoteliers will suffer if the government continues to restrict interstate and inter-district travel after the Movement Control Order (MCO) ends on Feb 18.
Its president, Tan Sri Teo Chiang Hong, said hotels suffered financially from the previous MCO and the industry is expected to lose about RM300 million during the two weeks of lockdown under MCO 2.0.
"Based on the Standard Operating Procedures (SOP), hotels are not allowed to take guests (tourists) for room accommodation, in-dining at restaurants or for meetings despite hotels being listed under essential services.
"There is no avenue for hotels to do normal business and generate any revenue during this period," he said in a statement.
Teo said the hotel sector was able to generate some income during the Recovery MCO (RMCO) when it was implemented from June 10 to Aug 31.
"Since the international borders are still closed to foreigners, hotels depend wholly on domestic tourists for business, which saw occupancy of some hotels, especially resort hotels at islands and beaches, touching 70 per cent or more.
"It was indeed a big relief, albeit a short one. However, the business for city-based hotels was still very bad. Prior to that, the occupancy was below 20 per cent.
"Without interstate and inter-district travel being allowed, hotels are totally deprived of any possible business even for domestic tourism," he said.
Teo said the hotel sector suffered an estimated loss of close to RM7 billion last year.
"We sincerely hope the government will allow hotels to take guests for room accommodation and for meetings apart from dine-in at hotel restaurants; and to lift the ban on the interstate and inter-district travel so that it is possible to promote domestic tourism.
"Chinese New Year is a peak time for the hotel business, usually with heavy bookings for rooms and restaurants, but unfortunately, not so for this year," he said.
Teo said hotels suffered heavy losses last year, and some hotels have closed down for good causing many to lose their jobs.
"Based on the Social Security Organisation (Socso) and Human Resources Development Fund (HRDF) reports from Jan 1, 2020 to Feb 2, 287 hotels have closed down and 5,265 employees terminated.
"There is no specified number of hotels which are still closed subject to recovery while six hotels have closed down during the MCO 2.0.
"Five hotels under MAHO closed last year, and one hotel closed this year. Hotels also have to resort to putting employees on a 50 per cent salary cut and leave without pay," he said.
Teo added that MAHO wants the government to extend more assistance to the hotel sector.
"An increase in the wage subsidy quantum from RM1,200 to RM1,500 without a cap on the maximum number of employees will be a great help.
"We also request the government to extend the Tenaga Nasional Berhad bill discount to 15 per cent from 10 per cent, which runs from March to Sep 2021, the moratorium on business and operating licences/permits, Employment Insurance System (EIS), deferment or reduction of assessment, and to review Indah Water Konsortium Sdn Bhd (IWK) monthly fixed charges linked to property assessment value.
"It is pertinent to allow hotels to do business and operate as normal with the SOPs so we are able to generate revenue to sustain and not close down, downsize or terminate employees," he said.