THE Government has failed to address the need of the hotel industry repeatedly despite countless proposals being submitted to the former on how to rejuvenate the sector
“The Government had not initiated any industry specific assistance. With that, more closures are expected and countless people will lose their jobs,” Malaysia Association of Hotels (MAH) CEO Yap Lip Seng told FocusM.
Earlier today, Hotel Istana announced that it would cease operations on Sept 1 and has offered Voluntary Separation Scheme to its employees following the decision.
“We have arrived at the decision considering the present circumstances and all available options. We are left with little choice other than to proceed with this closure,” it said, in a statement signed by its general manager Noorazzudin Omar.
This came following Hotel Equatorial Penang’s decision to close down in March, citing poor business conditions to due to the pandemic triggered economic malaise.
Last week, MAH told Sinar Harian that at least 120 hotels have shuttered temporarily or closed permanently, costing the nation over RM11.3 bil to date.
In general, Yap said the Government must understand that the hotel industry was not capable to survive on its own, adding imposing standard operating procedures (SOPs) alone would not help to revive the sector.
“The very nature of the industry is dependent on movement of people. As long as travel restrictions are still in place, the industry is set for an eventual death.
“Hotel operations are not only a high investment business but also high on operational expenses. Maintaining the property and its people is of extreme heavy burden that even closing it involves heavy costs,” he stressed.
With iconic hotels throwing in the towel, Yap said that many hotels were still operating in the red despite being used as quarantine hotels.
“Such closures are expected to affect hundreds of employees, and thousands more within the supply chain,” Yep reiterated. – June 1, 2021.
