HOTELS in Penang are staring at losses of up to RM8 billion due to the movement control order (MCO) enforced to curb the spread of the coronavirus, said the Malaysian Association of Hotels (MAH) state chapter.

Penang MAH chairman Khoo Boo Lim told The Malaysian Insight government incentives to retain staff were insufficient so that many employers have had cut to salaries or put workers on unpaid leave.

“Last year we saw brisk business. This year we expect to lose between RM6 billion and RM8 billion,” he said.

Khoo did not have the number of hotel workers whose jobs have been affected by the MCO.

MAH has 95 members in Penang.

At least five hotels in Penang have announced a closure because of plummeting business brought about by the Covid-19 pandemic and the MCO.

State tourism executive Yeoh Soon Hin has denied reports on social media that 35 hotels in Penang were temporarily closed or shut down.

“I contacted Khoo on the matter, and he said the list was unverifiable and unreliable,” Yeoh said.

An MAH survey on April 16 found that the virus crises could force 15% of hotels in Malaysia to shot down.

Half of the respondents said they were considering ceasing operations and 35% said they would temporary halt their businesses.

Some hoteliers said that they would remain closed until the end of the year at least while others said they would only resume operations after a vaccine for Covid-19 is found.

Earlier this month, Prime Minister Muhyiddin Yassin announced a wage subsidy of between RM600 and RM1,200 per month for each local worker earning RM4,000 and less a month, provided they were not laid off for six months.

In response, MAH chief executive officer Yap Lip Seng said most workers in the hotel sector were not eligible for the workers retention shceme disbursed via Social Security Organisation (Socso).

MAH chairman Khoo said the aid was inadequate.

“They are offering a minimum of RM600 a month to retain workers for three months. I am not sure how many hotels are taking this up as they were not informed.

“In any case,  three months’ aid is not enough for the hoteliers, which are in the tourism industry” which is among the hardest hit sectors and expected to take longest to recover from the crisis.

Have incentives, will travel

Khoo urged the state government to introduce incentives to encourage domestic tourism post-MCO.

He suggested that to attract visitors, the state should offer toll waivers at both bridges, free tickets for selected tourist attractions and discount vouchers for accommodation and drinks.

Yeoh said the state government would have to study the effects of Covid-19 and the MCO on the state’s tourism industry.

“I will engage with the various sectors and the relevant agencies to gain a better understanding of the extent to which they are affected and efforts to reduce their impact on the industry,” he said.

Yeoh added that he will set up a special team to conduct the study and report its findings to Chief Minister Chow Kon Yeow.

The MCO, introduced on March 18, has been thrice extended to now end on May 12.

The shutdown was enforced to contain the virus outbreak, which has so far infected 6,002 people and killed 102. – May 1, 2020.