THE tourism sector can invigorate the economy, so priority should be given to domestic travel in the short-term Economic Recovery Plan, said the Malaysian Association of Tour and Travel Agents (MATTA).
Its president, Datuk Tan Kok Liang, said the perception of the sector being the “first to be hit and last to recover” must change.
“Boosting domestic travel should be the priority and not be put as the last as it could invigorate economic activities in the
value chain, including tourist attractions and the aviation, accommodation, transportation, retail, food and beverage sectors.
“The service industry is a significant revenue earner and employment provider, so this will minimise retrenchments in the tourism industry,” he told the New Straits Times yesterday.
Tan said the government should consider measures to incentivise travellers, including through domestic vouchers and
tax incentives.
“Most countries are putting domestic travel as a priority to boost economic activities. Malaysia should do the same.
“Japan has secured a total budget of ¥1.7 trillion for benefits, such as subsidies for domestic travel. Its government will subsidise half of the domestic travel costs up to ¥20,000 per night and issue coupons that can be used at souvenir shops and elsewhere to encourage people to take domestic trips through licensed travel agents.”
Tan said RM92.561 million was spent in domestic tourism in 2018 and RM83.103 million in 2017.
A total of 221.3 million domestic visitors were recorded in 2018, amounting to 302.4 million trips in the country.
He said he hoped the government would fix a date on easing travel restrictions as it would allow businesses to “warm up”
their operations.
He said the Finance Ministry should supervise and monitor the effectiveness of the three stimulus packages that have been announced.
“To our knowledge, there is approval for the Special Relief Facility fund but no drawdown yet for tourism players.
“It appears that the government has been rolling out package after package without adequate supervision and feedback.
“The minister said employers were facing difficulties in paying staff and rentals.
“The stimulus packages are not effective.
“We ask the government to help us survive (the pandemic) and make good on the promises.”
He said MATTA urged the government to reassess the issues of the Wage Subsidy Programme (WSP) and Employment Retention Programme (ERP).
“The WSP should be extended to Dec 31, with the allocation increased from RM1,200 to RM2,000 with stringent qualifying criteria, terms and conditions so that more people could benefit from the programme.
“The ERP should also be extended to Dec 31.
“The financial aid of RM600 per employee should be increased to RM1,200 as many find the current amount insufficient.
“A one-time submission for companies in the tourism industry should suffice, knowing that we had zero revenue from March to today. The travel industry requires additional assistance due to its unique nature and the negative multiplier effect caused by the pandemic and restrictive policies in place.”