For the hospitality industry to survive, tourism must be resumed with clear Standard Operating Instructions (SOPs) and mechanisms.

Reducing fixed costs, restructuring the workforce, and multitasking employees are some of the survival strategies.

In addition to introducing their tariff structure to tap the domestic market, hotels are also focusing their promotions on groups planning meetings and social events with a setup that conforms to the SOPs.

“The tourism industry can be improved and improved along the way, but the government cannot reverse the reopening of the sector.

“Better revenue management, in addition to productivity-based costs, will lead the industry through the recovery,” said Yap Lip Seng, CEO of the Malaysian Hotel Association.

Hajjah Emmy Suraya Hussein, President, Malaysia Budget Hotel Association

The industry also needs to plan ahead to rebuild its talent and workforce and prepare for a very competitive market.

The government should outline a map of the recovery for the opening of interstate and international borders, for example within ASEAN and China.

Talks with foreign colleagues should be started and the industry should be kept up to date.

“This will allow us to align our marketing efforts accordingly,” said a member of the Malaysian Association of Hotel Owners (MAHO).

“Win the public’s trust with clear messages around strong and consistent SOPs; Run a campaign for vacation at home and take advantage of the fatigue of staying at home with attractive, safe and new eating experiences, ” said another MAHO member.

To focus on the domestic and family market, some hotels are starting rebranding and upgrades to serve different markets such as the vacation and work segment.

The infection rate through travel should be monitored and, if necessary, Covid-19 tests should also be prescribed for fully vaccinated persons before hotel check-ins.

Vaccination should also be mandatory for hospitality workers, while communication on Covid-19 should be streamlined through a single agency.

Hanley Chew, founder of JustTonite

“It will be a reset and rethink service delivery and hotelier engagement. The vaccination status, not only for guests but also for hotel staff, will be a major concern for guests, ”said Hanley Chew, founder of the online hotel booking platform JustTonite.

Significant investments have been made in ultraviolet-C (UV-C) air disinfection units in public areas – air conditioners, in guest elevators and guest rooms, reported a MAHO member.

UV-C lamps are set up in each guest room for disinfection prior to the arrival of the next guest.

“Given the experience with this Covid-19 pandemic, hotels will continue to review existing SOPs. Future investments and spending will also take into account a possible recurrence of this pandemic, ”said Kevin Cheah, General Manager of Iconic Hotel Penang.

Kevin Cheah, General Manager, Iconic Hotel PenangKevin Cheah, General Manager, Iconic Hotel Penang

Given the losses over the past 18 months, MAHO members have requested:

> Exemptions and discounts on water, hotel and beer house licenses as well as for live bands and music authors copyright protection.

> A waiver of the 6% digital tax on total commissions from online travel agents (OTA); Service tax of the OTAs, which is to be borne by the OTAs themselves and is not deducted directly from the hotel payments; the government to monitor the maximum percentage of commissions for OTAs.

> Electricity discounts for 2022.

> 50% discount on the hotel valuation and cancellation of the rent for the next two years.

> No levy on the Human Resource Development Fund for the next two years.

> Inheritance tax of RM2 per room night (collected on behalf of the Government of Melaka State), which will be waived for the next two years.

> Continuation of the wage subsidy program for 2022, as not all hotels are expected to break even in the near future.

> Only locals are to be hired at all levels by 2024.

> For re-hiring companies, 50% of salaries are paid by the government to the department head level, with a maximum of RM2,500 paid by the government for each re-hired employee.

> The service fee exemption should be extended.

“We’re hoping for a one-time grant for hoteliers to get back to business; a 30 to 50 percent discount on utility charges and a 50 percent discount or exemption from paying rent and valuation, ” said Emmy Suraya Hussein, president of the Malaysia Budget and Business Hotel Association.

In order to promote local tourism, a personal tax rebate of RM 1,000 for tourism expenses and a grant for locals to stay in registered hotels should be granted for 2022.

Another proposal was a discount of RM5,000 on income tax through custom hotel packages in Malaysia, including the purchase of local airline tickets.

Properly planned and organized road shows should be held in key markets to promote Malaysia; international and charter flights should be secured to Langkawi.

The government sector should be encouraged to hold events in hotels; Free Covid-19 tests should be given to government agencies and related companies that are encouraged to hold functions or meetings in Langkawi.

As hotels process their losses and set SOPs and other requirements, we should continue to support them and help them get through this difficult time.

While we also have reasonable requirements for additional items on top of the packages, given the overall lower incomes, hotels should offer affordable rates.

Yap Leng Kuen is a former StarBiz editor. The views expressed here are your own.