The COVID-19 pandemic crisis continues to threaten many sectors, especially the budget hospitality industry, in which for some, it is just a matter of time before operations cease.
The statement was admitted by Zamari Muhyi himself when contacted.
Zamari, who’s the chairman of Perak Malaysia Budget Hotels Association (MyBHA), also stated that budget hotel operators recorded zero income since the implementation of the Movement Control Order (MCO) in March last year.
“If this phenomenon continues, operators will bear a high debt burden which will subsequently force them to close their businesses, since they will no longer be able to accommodate costs of operation, utilities and staff salaries.
“There are 118 budget hotels in the state but only 78 are registered with MyBHA. Even though the hotel industry is allowed to operate with strict adherence of SOPs, it’s extremely difficult to receive even one reservation despite the lowered rental price.
“What’s even more concerning, applications for the Wage Subsidy Programme 2.0 (PSU 2.0) have yet to be received by operators for the months of October, November and December last year.
“Should the process of these applications be accelerated, it’ll lift some burdens off the operators’ shoulders,” he said.
Zamari, who’s also the president of the Perak Bumiputera Tourism Operators’ Association (PPPBP), called upon the state government to increase the industry player staff wage incentive from RM600 to RM1,000 per person for six months.
He added that the federal government should consider giving discounts of up to 50 percent off electrical and water utilities until September 2021, besides reduction of assessment tax rates by local authorities (PBT).
“Hopefully, the state government takes these latest suggestions into consideration. I’m ready to cooperate in looking for the best solutions before it’s too late,” he expressed.