THE government has provided RM1.6 billion to revive the tourism industry, one of the worst-hit industries due to Covid-19.

This year’s allocation is an increase from last year’s RM1.2 billion. 

During Budget 2022 today, Finance Minister Tengku Zafrul Tengku Abdul Aziz unveiled seven initiatives to help revive the industry.

Among them is the continuation of the wage subsidy programme aimed at tour companies, which have suffered a decline in revenue of at least 30%.

Tengku Zafrul also announced specific financing for the tourism sector of RM600 million under the Penjana tourism financing and BPMB rehabilitation scheme.

Tourism and ancillary industries are estimated to have suffered lost more than RM100 billion in revenue since the start of the pandemic last year.

Meanwhile, the Malaysian Association of Hotels reported that the hospitality sector recorded a similar decline of RM6.53 billion for the year 2020 and is likely to lose at least RM9 billion more this year.

Tengku Zafrul said RM85 million will also be given to more than 20,000 registered tour companies for a period of three months.

Another RM50 million is earmarked to maintain tourism infrastructure, buildings, and historical attractions like the Sultan Abdul Samad Building and Lembah Bujang in Kedah.

The government will also give out matching grants for 738 registered budget hotels to make repairs, and RM30 million for the same purpose for registered homestay owners.

Tengku Zafrul said RM50 million in matching grants will be given to companies that organise programmes related to arts and culture.

He also announced that entertainment duty exemption on entertainment activities including cinemas in all federal territories and tourism tax exemption will be extended until December 31, 2022.

States are also advised to provide entertainment duty exemption to support the recovery of this sector.

Last week, Tourism, Arts, and Culture Minister Nancy Shukri told an international news network that Malaysia may open its borders to foreign tourists in November after nearly two years of closure.

Interstate travel was banned in March last year during a nationwide lockdown. It was lifted months later in June when the Covid-19 situation improved but reintroduced in early January amid a spike in infections.

On October 11, interstate and outbound overseas travel were allowed after the country had vaccinated 90% of adults. – October 29, 2021.