The Malaysian Trades Union Congress (MTUC) has said that more than 30,000 employees in the hotel sector have lost their jobs. This has then been refuted by the National Union of Hotel, Bar and Restaurant Workers. They claim that actual number should be around 10,000 employees.
Nevertheless, the important point is that the tourism and hotel industry is one of the most affected by Covid-19.
In Melaka, there are about 10,000 people working in hotels. Three major hotels have announced that they will cease operations, and I was told that many others have enforced unpaid leave.
Nobody is sure when will the tourism and hotel sector recover, but indications have been pessimistic.
International travel will remain restricted for a longer period. The International AirTransport Association (IATA) has said that they do not expect global passenger demand to recover to pre-crisis level until 2023.
Domestic tourism may be the key to recovery, but yet they contributed only 49% of total tourism expenditure in 2019.
Short-term government measures are necessary to avoid a sudden collapse of the industry. Unfortunately, I am not aware of any policies or measures introduced by the government that are tailored to the needs and context of the hospitality industry. This was one of the questions that I wanted to ask in parliament, but as we know, the government has not held a proper parliament sitting since last year.
The relevant ministry should also start collecting data on the industry. The discrepancy between MTUC and the hotel workers union on loss jobs highlights the importance of accurate and timely data. Without proper data, we will not know the real scale of the problem and, correspondingly, what measures to take.
The United Nations World Tourism Organisation (UNWTO) has launched a global Guidelines to Reopen Tourisism (https://www.unwto.org/news/unwto-launches-global-guidelines-to-reopen-tourism). It contains many useful points for the government and industry players to consider.
For business and workers, steps must be taken to brace for a longer downturn in the industry, possible for another 6-18 months. Readjustments may be needed, especially in terms of reallocating resources and jobs to other sectors.
