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Penang hotels rocked by MCOs

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Targeted stimulus for hotels sorely needed, along with hefty cuts on power and water bills, says Penang MAH.

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Free Malaysia Today
The Equatorial Hotel is the latest to announce its shutdown. It will be closed by the end of March.

GEORGE TOWN:
Nine Penang hotels have closed their doors for good since the movement control order (MCO) was imposed last year while 21 more have temporarily closed and the future looks bleak for the industry in the state.

Malaysian Association of Hotels (MAH) Penang chapter chairman Raj Kumar said the hotel industry as a whole has been “badly shaken” by the pandemic, with single-digit occupancy since the start of MCO 2.0.

In a statement, he urged the government to extend the wage subsidy by 50% for staff earning below RM4,000 and 40% for those having an income of RM8,000 and above.

Raj said the recently announced electricity bill discount of 10% was not enough and hoped the government could provide more substantial aid for the hotel industry to maintain their footing.

He said additional tax incentives, such as reduced quit rent and assessment rates, hotel licences, foreign workers’ levies and at least a 50% cut on electricity and water bills in the period of six to eight months would aid recovery.

Raj said a tailor-made stimulus for the hotel industry was sorely needed.

“Another key element to generate immediate revenue is to encourage civil servants and other corporate guests to stay in hotels and organise events with strict SOPs (standard operating procedures),” he said.

Raj said besides that, an “aggressive” marketing strategy was needed when the regional travel market reopens when the pandemic subsides, especially for countries within Southeast Asia.

“We are facing the biggest challenge in our hospitality industry in keeping up with the increasing job losses, pay cuts, retrenchments and closure of hotels for good or temporarily. Many other hotels are just struggling to survive,” he said.

The five-star Equatorial Hotel has already announced that it will shutdown by the end of March.

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