HOTEL Equatorial Penang will close effective March 31 given the adverse business conditions caused by the Covid-19 pandemic.

The hotel’s general manager Alan H.C. Ong said the last day of business is yet to be decided but it will be before March 31.

“This is a sad and difficult decision. Until we cease operations all staff shall remain employees of the hotel,” he said in a statement.

Ong said despite the huge losses incurred by the hotel, they will pay severance benefits and details will be announced at a later date.

“Rest assured that the management will strive to comply with all obligations to the staff in accordance with the terms and conditions of employment.”

The five-star hotel is located in Bayan Lepas, just seven minutes away from the Penang International Airport and 20 minutes from the city centre.

The local hotel and tourism industry has been badly hit by the closure of international borders and movement restrictions due to the pandemic.

Malaysian Association of Hotels said that the government was neglecting the tourism industry despite its contribution to the economy of the country, and is left to collapse.

MAH president N. Subramaniam said 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 for survival.

“Hotel occupancy for the month of January 2021 took a drastic drop to a low 20% right after the announcement of MCO.

“Cancellation of bookings were recorded across the country, including for the coming Chinese New Year period,” he said in a recent press statement.

He added that for every two weeks of MCO, the hotel industry is expected to lose over RM300 million in revenue.

Tourism, Arts and Culture Minister Nancy Shukri told Dewan Rakyat in November that a total of 204 tourism and hotel operators have closed their businesses since March last year due to the impact of the Covid-19 pandemic and enforcement of the movement-control order (MCO).

She said based on data released by the Companies Commission of Malaysia (SSM), the number comprised 109 entities in the hotel sector including hotels, resorts, motels, homestays and chalets, while 95 others were tourism agencies and tourism activities operators. – January 25, 2021.