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More Than 120 Hotels In Malaysia Forced To Close Because Lockdowns

More Than 120 Hotels In Malaysia Forced To Close Because Lockdowns

Unlikely for some in the tourism sector to survive past October.

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Malaysia’s tourism industry is gasping for air. Reportedly, more than 120 hotels across the country will either be temporarily or permanently putting up their ‘no vacancy’ sign after being submerged into lockdowns for more than a year since the Covid-19 pandemic according to reports by Sinar Harian.

Malaysian Association of Hotels (MAH) CEO Yap Lip Seng revealed that 2020 saw 100 hotels forced to close because of financial losses, while 20 more have shut down operations this year.

Yap explained that the nation’s hospitality sector had suffered RM11.3 billion in losses and since March 2020, stakeholders in the tourism industry have lost over 80% of their income.

With the pandemic showing no signs of slowing down, he acknowledged the need for lockdowns as a measure to contain the pandemic, however, he urged the government to provide more support in order for the 3.6 million people employed in the country’s tourism sector to be secured.

Meanwhile, Free Malaysia Today had previously quoted, MAH in a statement saying that it is unlikely for some industry players to sustain themselves past October 2021 if the current situation continues.

Having sustained losses for more than a year now, we will not be able to endure another six months and this will likely result in more hotels closing and more people losing their jobs if there is no additional assistance from the government.

MAH statement via Free Malaysia Today

Read More: 20% out of 2,300 Budget Hotels Could Close Down Due To Covid-19

In March, the Malaysian Statistics Department (DOSM) reported that unemployment across the country jumped from 4.8% to 4.9% between December 2020 and January 2021 as the pandemic impacted tourism-related industries.

Among those affected were the hospitality sector, food services, entertainment and recreational sectors as well as transportation services.

(Credit DOSM via The Star)

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