THE federal government’s failure to save the tourism and hospitality industry has left hotel businesses reeling, which has impacted many people’s careers, DAP secretary-general Lim Guan Eng said today. 

“The federal government failed to save the tourism and hospitality industry following the Covid-19-imposed total lockdowns.  

“The 276-roomed four-star business hotel will be closed by November, putting hundreds of employees out of work,” the Bagan MP said in a statement today.  

The former Penang chief minister’s statement comes following the announcement that the four-star Hotel Royal Penang in George Town is set to close on November 15.

Lim said it will become the latest renowned hotel in Penang to shut down following the closure of the five-star Equatorial Hotel and Holiday Inn Resort. 

He said the closure will result in a number of people losing their jobs.

A circular from Hotel Royal Penang’s management says that the closure of the hotel located along Jalan Larut is part of a management restructuring exercise due to the Covid-19 pandemic.

Lim took a dig at former prime minister Muhyiddin Yassin-led Perikatan Nasional (PN) administration, saying the government’s economic stimulus packages amounting to an astounding RM530 billion failed to aid the tourism industry.  

“PN’s eight economic stimulus packages amounting to RM530 billion failed the tourism industry with not only much needed financial grants missing but also the tourism minister’s inability to help them survive the RM100 billion losses last year.  

“Offering loans and tax deductions or rebates are meaningless when there is no revenue or business available,” Lim said. 

With the new government led by Prime Minister Ismail Sabri Yaakob agreeing to a memorandum of understanding (MOU) with top Pakatan Harapan (PH) leaders, Lim said the Finance Ministry should be able to provide much better financial aid. 

The former finance minister said among others, one of the deals agreed in the MOU was a RM45 billion cash injection to the Covid-19 funds.  

“As a start from the RM45 billion financial aid injection in the MOU, double the wage subsidy programme for all its workers, offer interest-free bank loan moratorium, business grants, rental and utility subsidies.  

“While we can argue on the quantum to be given, the problem is that if none is offered, none will be expected to survive,” Lim said, adding that the tourism industry is too important to either ignore or abandon without any concerted financial assistance.

Lim cited Malaysian Association of Hotels (MAH) chief executive officer Yap Lip Seng, who said that the hospitality industry has lost more than RM11.3 billion with more than 120 hotels closed down.  

According to MAH’s June report, the industry achieved an average daily rate (ADR) of RM190 and an average occupancy rate (AOR) of 32% in 2020, while the ADR for 2021 was projected to be in the RM180-to-RM190 range, whereas AOR is expected to be far worse than last year, at 23%. – September 17, 2021.