Absurd to compare PN, unity govts using hotel bookings, says economist

Source: Free Malaysia Today
Author: Ameer Fakhri

PETALING JAYA: An economist has dismissed a backbencher's comparison of the unity government and the former Perikatan Nasional (PN)-led administration through the use of "fully booked hotels" as a measurement of public satisfaction.

Carmelo Ferlito, CEO of think tank Center for Market Education, acknowledged that the current surge in hotel bookings could serve as an economic indicator.

However, he said drawing comparisons with the PN-led administration was meaningless as hotels had been closed at the time.

PN chairman Muhyiddin Yassin led the government from February 2020 to August 2021, amid the Covid-19 pandemic and ensuing lockdowns.

Speaking to FMT, Ferlito said the situation would have been no different if Pakatan Harapan had been in power.

"It would not have made any difference. (Every government) was in love with lockdowns, despite economists warning against their detrimental impact," he said.

"A proper dataset from the hotel association comparing current booking rates with those before the pandemic would provide more meaningful insights. That would be a fairer comparison."

Government MP Aminolhuda Hassan recently said that the fully booked hotels in Kuala Lumpur indicated that the people were "happy" with the unity government's performance.

The Sri Gading MP said that in comparison, people had to wave white flags for help during the PN-led government's time due to a lack of food or basic goods.

"If we enter a hotel and it's full, it shows that the people are happy and can enjoy themselves," he said in the Dewan Rakyat.

Checks with Malaysian Association of Hotels president Christina Toh revealed a surge in hotel bookings in some places due to the festivities and school holidays.

Toh said hotel bookings in certain states had reached 80% of pre-pandemic levels, while those in other states remained low.

PAS's Syahir Sulaiman also rubbished Aminolhuda's remarks, saying the economic circumstances of the PN-led government were very different due to the Covid-19 pandemic.

The Bachok MP said that when Muhyiddin was prime minister, Malaysia had been facing a health and economic crisis.

"Yes, the people were facing difficulties, but the government at that time listened and addressed their plight. We were committed to ensuring that everyone had food on their table.

"There were also moratoriums and financial aid for small and medium enterprises," he said.

Syahir accused the current administration of being in denial about the people's economic concerns, saying he preferred to use on-field economic indicators to gauge the government's performance.

He said these included the people's purchasing power rather than macroeconomic indicators such as gross domestic product, which might not reflect the reality on the ground.

"At the end of the day, people will always spend, but it is important for us to see whether they are spending from what they earn or borrow."