Matta: Tourism sector in dire have to have of govt tax relief, economical help

KUALA LUMPUR, May perhaps 30 — With no tourism revenue and organizations deep in credit card debt, the Malaysian Association of Tour and Journey Brokers (MATTA) is calling on the governing administration to deliver some variety of tax aid to relieve the economic burden for some 3,000 of its users.

‘‘Any type of tax relief would be welcomed, supplied that quite minor money aid is forthcoming for the vacation and tourism sector,” said Nigel Wong, MATTA’s honorary secretary-standard, emphasising that some 90 per cent of the 47,000 staff in the sector have been still left unemployed,

He stated this when elaborating on MATTA’s proposal for the government to come up with a tourism recovery roadmap for the duration of Bernama TV’s ‘Midday Update’ programme very last 7 days.

MATTA also needs the moratorium extension on loans by financial institutions to incorporate leasing firms, as most of the buses and vans utilized by travel and tour providers ended up acquired from leasing organizations, he claimed.

Wong mentioned it is financially challenging to preserve the fleet of transport cars, this sort of as buses and vans, ever due to the fact the Covid-19 pandemic hit final calendar year and brought organizations to a grinding halt.

“Our estimates — based mostly on our survey of 3,000 MATTA customers by itself — show that we are on the lookout at close to, or if not more than 9,000 motor vehicles categorised as ‘Bas Persiaran’ (tour buses).

“To place it into context, a 40-seater tour bus can cost everywhere amongst RM490,000-RM580,000, that means that the leasing and bank loan payments could be exorbitant, specifically all through the recent slowdown,” he mentioned.

Amidst this sort of tricky situations, he stated MATTA is urging for qualified initiatives to enable relieve the economical burden and charges, though also serving to the sector to retain its talent pool and protect the sector for far better times.

“Based on our survey on our 3,000 members, travel organizations on your own employed additional than 47,000 workers, but the formal variety is considerably bigger as not all vacation businesses are MATTA customers.

“At this issue of time, we estimate that much more than 90 for each cent of that workforce have either been laid off or place on unpaid depart,” he claimed, noting that the number might not include freelance experts these kinds of as tourist guides and deal personnel who also work intently with travel brokers.

Wong also called for the federal government to simplicity statutory polices for vacation and tour corporations, exactly where the Employees Provident Fund (EPF) contributions could be decreased for a specific period and the Human Resource Enhancement (HRDF) payments could be exempted.

As for tax relief, he mentioned in 2020, MATTA experienced asked the authorities to decreased the tax for revenue acquired in 2019 as a way to bolster the cashflow for the issues forward.

“Now, with no tourism money and with numerous businesses in debt, burdened by rental, leasing and mortgage payments, any sort of tax relief in Spending budget 2022 would be welcomed.

“Currently, the tourism sector is in limbo and it has been so given that the start of the pandemic, wherever resorts are not working, or somewhat, ‘hibernating’, which is an understatement presented the continuing lockdown,” he mentioned.

When asked on no matter whether consolidation and mergers could be the way ahead for journey and tour companies to endure the demanding times, he stated MATTA had mooted the idea to its associates.

“They can incorporate their resources as a strategic transfer to not just endure but perhaps even to thrive when small business picks up all over again in the upcoming,” he stated.

On reskilling, he reported travel company personnel are a gifted ton, capable to adapt and master rapidly owing to the elaborate and at any time-transforming natural environment of the marketplace.

Wong reported through this tough time period, the governing administration must make cash out there for travel company workers to receive new technological innovation and language skills.

Money could also be made offered to tourism industry experts pursuing skilled certifications in the trade, these types of as diploma classes and Masters in tourism, he stated, introducing that he also knows of travel brokers venturing into the electronic house, supplying on the internet products and services.

The industry is also preparing MATTA users to be empowered and be digitally savvy so that when borders slowly begin to re-open up, additional associates would be well prepared, said Wong.

As a apparent portrayal of the intense hardships confronted by the sector, he cited a scenario the place the operator of a vacation company is now carrying out manual building perform to survive.

Wong included that MATTA is lobbying quite hard for the government to undertake focused initiatives to support individuals affected and revive Malaysia’s tourism sector, which has been a significant income earner for the nationwide coffers. — Bernama