THE Covid-19 pandemic has toppled every player in a Langkawi economy highly dependent on tourism to survive.

From big hotels to sightseeing spots and the beach boys handling water-sports activities, the virus has caused a domino effect on income since the movement-control order (MCO) to curb infections was enforced on March 18.

All parties in the tourism chain are affected, said local administrators and industry players, which means a large segment of the island’s residents, as tourism contributes 60% to Langkawi’s revenue, said Langkawi Development Authority (Lada) chief executive Hezri Adnan.

These players struggled to earn an income after Covid-19 struck Malaysia earlier this year, and their situation worsened when the MCO began. 

The pandemic came just as Langkawi, off the coast of Kedah, was seeing growth in the tourism sector.

“Arrival of luxury cruises had increased by 20% and more locals were getting into the taxi trade with new vehicles,” Hezri told The Malaysian Insight. 

“Visitor arrivals also rose in January, and there was an increase in hotel occupancy rates and taxi ridership.

“Now, even the beach boys at Pantai Cenang, who usually earn RM100 to RM300 per day, have no income.” 

Langkawi Port, which usually handles a daily average of 1,200 metric tonnes of cargo, has been managing only about 200 metric tonnes per day since the MCO was implemented.

In total, 5,000 registered businesses in Langkawi are affected, said Hezri.

The restriction order, which was due to end next Tuesday, has been extended for two more weeks to April 28.

Yesterday, the Health Ministry reported 184 new coronavirus cases and three deaths, bringing Malaysia’s total number of infections to 4,530 and fatalities to 73.

“Every industry and tourism product is impacted due to the island’s dependence on tourism. For example, the Langkawi Crocodile Farm only receives 30% local tourists, while the rest are from abroad,” said Hezri.

“The worst-affected are products highly dependent on foreign tourists.”

As such, the biggest worry is that the government will continue to ban the entry of foreigners even after the MCO ends, given that the virus has now affected 210 countries. 

Hezri is also concerned that the Covid-19 crisis will increase unemployment on the island post-MCO.

Langkawi had enjoyed almost full employment as there were numerous job opportunities on the island.  

“At Pantai Cenang, schoolboys could work and earn RM50 to RM60 per day,” said Hezri.

“I am still thinking about how we can provide job opportunities to those affected, but that depends on tourist arrivals.”

6 months to recover

Hezri feels that Langkawi can slowly begin to recover six months after the MCO ends. 

He said Lada has revised expectations on tourist arrivals after the order is lifted, and thinks a realistic figure for the whole year is two million.

Tourist arrivals to the island had increased over a four-year period – from 3.5 million in 2014 to 3.63 million in 2018. 

“An estimation of one million is too low; that was last seen during the 1980s. A target of three million, on the other hand, is too high as it is already April,” said Hezri.

He said the predicted figure came out of discussions between Lada and several tourism associations on the island. 

Malaysia Hotels’ Association Kedah/Perlis branch chairman Eugene Dass also estimates a six-month recovery period post-MCO for the hotel industry.

“I have seen several hotels continue to promote themselves online. I predict that six months after the MCO is lifted, the tourism industry in Langkawi will be rejuvenated.  

“Most hotels will continue to operate after the MCO. Maybe some will have to shut down, but not many. Perhaps, only hotels that operate without a licence.”

Nevertheless, he hopes the government will increase assistance for hotel owners to help them cope with the challenging circumstances. 

“I hope the government can subsidise employee wages for up to six months instead of three.  

“The tourism tax for foreign tourists should also be abolished for this year to attract more visitors to Malaysia.”

He acknowledged the need to find new markets instead of continuing to rely on tourists from Indonesia, Singapore and China.

Meanwhile, Langkawi Tourism Industry Association president Ahmad Phisol Ishak said about 40 hotels on the island are temporarily closed during the MCO.  

“Certainly, hotels will rehire people after the MCO. But if it is extended, then what is going to happen? Look at those working on the beaches. They have completely lost their income as they live on daily wages.”

The government is subsiding wages for employers with local workers earning RM4,000 and below for three months, provided that they do not lay off employees.

This is under the additional RM10 billion stimulus for small and medium enterprises announced by Prime Minister Muhyiddin Yassin last week. 

The Malaysian Insight previously reported Malaysian Chinese Tourism Association president Albert Tan as saying while the stimulus is able to address several issues, such as employee salaries and loan repayments, the tourism industry needs a specific package as the sector faces unique challenges. – April 12, 2020.