Malaysian hoteliers are seeking tax deferment and a cut in interest rates to cope with the Sars outbreak, which cost them RM82.70 million in revenue losses last month.

Occupancy in April had dropped to an average 42 percent, down from 61.5 percent in the same month last year, said the Malaysian Association of Hotels president Mohamad Ilyas Zainol Abidin.

"This translates into a loss of 349,409 room nights worth of business, that is RM82.7 million in total revenue loss," he told reporters.

No to lowering rates

Ilyas said the situation was not expected to improve over the next three months because people were still not travelling amid uncertainties over Sars which had left some 500 people dead worldwide .

He ruled out lowering room rates as it would compound the situation.

But he said Prime Minister Dr Mahathir Mohamad was expected to unveil a stimulus package o­n May 13 and urged the government to include short-term measures to allay their financial burden.

The association, which groups 307 hotels, is calling for a o­ne-year deferment of the five percent government tax and the human resource development fund, and a lowering of interest rates to help safeguard the jobs of some 80,000 people in the hotel industry.

"The government is looking into putting together a stimulus package. I think coming through by (May) 13, the prime minister is going to announce this," he said.

"We hope our plight is taken quite seriously by the government."

Crippled tourism industry

The actual health impact of the Severe Acute Respiratory Syndromehere -- with two deaths out of six probable cases locally -- is not as severe as in other countries -- but it has taken a huge toll o­n tourism and other businesses.

Arrivals from China have dropped to near zero, those from Hong Kong and Taiwan down by 90 percent and Singapore arrivals, its top market, fell by 80 percent, according to local tour and travel agencies.

Tourism is the country's second largest foreign exchange earner after manufacturing. -- AFP