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2. Alleviate Immediate Financial Burden for Tourism Businesses.

Updated: Jun 3, 2020

The primary challenge for operators is cash flow. They need to sustain payrolls as well as debt obligations. These suggestions will immediately offer relief in the short term.

Provide a Debt Moratorium for 2 Years.

  • Currently banks are offering 6 month moratoriums on existing debt and 1 year moratorium on new debt. For the East coast which suffered a down year last year immediately after the Easter bombings, and needs fresh relief this year, a 6 month moratorium is too short. Allow businesses to get one full season under their belt in 2020 before payments are to be made.

Grant Reductions in Utility Payments

  • Grant concessions or reduction in utility payments until a recovery is seen.

Subsidize Fuel for Transport for Tourism and Alternative Energy Sources

  • Grant subsidies for fuel used for transport back and forth to the East and alternative power sources like generators.

  • Since transport operators will have to halve their occupancy, reduction in fuel prices will help offset this cost. With a global reduction in the cost of oil this is now possible.

Reallocate Fee Payments back to Employers and Employees for the Near Term

  • Suspend SLTDA fees. 1% of all revenues are paid to SLTDA and operators need these funds now to cover expenses until recovery is seen in 2021.

  • Suspend employers EPF/ETF contributions until recovery is seen in 2021. This will allow employers to keep staff employed for longer by reducing their overhead costs. While an argument can be made that this is detrimental to the employees themselves however if this means that a company is less likely to let the staff go due to high cost, then it is far better to keep them employed with less benefits than to lose their jobs altogether.

  • Allow employers to give staff EPF contributions directly to staff. This allows workers to have more disposable income.

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