Twentytwo13

Govt should formulate ‘future-centric’ policies for a resilient tourism economy, post-pandemic

A hospitality industry player has called on the government to formulate “future-centric policies” as Malaysia moves into the endemic stage following its long battle against Covid-19.

OYO Malaysia and Singapore vice-president and head, Tan Ming Luk, said it was crucial to plan on how the industry could benefit from the “pent-up demand” following the easing of movement restrictions nationwide, and with the economy slowly regaining its footing.

Tan said the recovery of the tourism and hospitality sector would depend on rebuilding trust between tourism destinations and source markets. He added Federal and state governments played a critical role in effectively aligning with the hospitality industry, in order to achieve this.

His comments came as Tourism, Arts and Culture Minister Datuk Seri Nancy Shukri, expressed hope, in the Dewan Rakyat this morning, that Malaysia would re-open its borders to tourists in December.

Tan shared his thoughts on how to overcome the effects of the pandemic, support the local hospitality industry, and positively impact the Malaysian economy.

“Structural and physical changes to tourist destinations will be required to address health requirements and visitor expectations. Implementation of standardised labelling, under the Health Ministry, to certify safety and hygiene measures, can allay anxiety among travellers, avoid confusion and improve trust and confidence.

“These new labels can indicate hand sanitiser and hand-washing facilities, physical distancing protocols, and frequent cleaning procedures, as well as automated and contactless transactions, among others. Proof of vaccination also helps.”

He added that financial relief – while not meant to replace the loss of business resulting from the pandemic – would help businesses cushion the impact, by helping to reduce costs, spur demand and alleviate cash flow issues, at least until travel volume recovers.

“Costs can be reduced through deferment of licensing fees, sales and service taxes, and more, for one year. With mechanisms already in place, it will be straightforward to implement. Wage subsidies can also be extended until March 2022, which will benefit some 4.8 million small, and medium enterprise (SME) workers.

“Income tax deferment for companies in the tourism industry, previously introduced for travel agents, hotel operators, airlines and others, for six months (April 1-Sept 30) last year, proved helpful, and we propose the reintroduction of this initiative for SMEs in the tourism sector, for an initial period of six months, from October 2021, to April 2022, allowing these companies to defer their monthly income tax payments.”

Tan said efforts to attract international tourists to Malaysia remained crucial. He added industry players must join forces under a thematic umbrella to restore traveller confidence and stimulate demand by positioning Malaysia as a safe and clean destination.

“Today’s crisis is also an opportunity to rethink tourism for the future. Policies put in place today should consider long-term implications, such as staying ahead of the digital curve, supporting the low carbon transition, and promoting structural transformation for a more sustainable and resilient tourism economy.

“The strategies laid out in the 12th Malaysia Plan to revitalise the tourism industry are a good start. Restoring tourist confidence, providing better quality products and services, enhancing the sustainability of tourism products, strengthening brand positioning and promotion, instituting governance reforms, and intensifying domestic tourism, will all help,” he added.