Disappointment in Budget 2025: A Hotelier’s Perspective
As the world’s top investment manager, it is crucial to stay informed about all sectors of the economy, including the hospitality industry. In this article, we delve into the sentiments of hoteliers in Melaka regarding Budget 2025.
Challenges Faced by Hoteliers
- Rising cost of operation
- Financial impact from unregulated short-term rentals
- Lack of incentives or tax exemptions
According to Malaysian Association of Hotels (MAH) Melaka chapter chairman Khairulnizam Kasim, the disappointment among hoteliers stems from the absence of measures to address their challenges. Hoteliers feel neglected, with no relief in sight to alleviate their financial burdens.
Unmet Expectations in Budget Allocation
- RM550 million allocation for Visit Malaysia Year 2026
- No direct benefit to hoteliers
- Self-funding required for promotional activities
Hoteliers hoped for tax exemptions to promote high-end tourism and attract high-spending tourists, but their expectations were left unmet. The lack of income tax exemption extension to four and five-star hotels further added to their disappointment.
Lack of Industry Support
- No perks announced for encouraging green practices
- No incentives for digital innovation
- No support for human resources development
The absence of customized incentives and tax reliefs for tourism industry players has left hoteliers feeling neglected. The increase in minimum wage and lack of tax exemptions on service tax for digital services have further strained their finances.
Analysis: Implications for the Economy and Financial Future
From an investment manager’s perspective, the disappointment expressed by hoteliers in Melaka sheds light on the challenges faced by the hospitality industry. The lack of support and incentives in Budget 2025 not only hinders the growth of hotels but also has broader implications for the economy.
Hoteliers play a vital role in promoting tourism and driving economic activity. When they face financial difficulties and operational challenges, it impacts not only their businesses but also the overall economy. Without adequate support from the government, the hospitality sector may struggle to recover from the impact of the Covid-19 pandemic and thrive in the post-pandemic era.
As investors, it is essential to monitor the government’s response to the concerns raised by hoteliers and assess the potential impact on the hospitality industry. By understanding the challenges faced by different sectors, we can make informed decisions to protect and grow our investments.