Malaysia’s new tourism minister backs tax; hotel groups to appeal

After reviewing the tourism tax, Malaysia’s Tourism, Arts and Culture Minister Mohamaddin Ketapi has decided the flat rate of RM10 (US$2.47) per room per night on foreign tourists will be maintained.

In response, Malaysia Budget Hotel Association president, PK Leong, told TTG Asia that the three hotel associations, Malaysian Association of Hotels (MAH), Malaysian Association of Hotel Owners (MAHO) and Malaysia Budget Hotel Association (MyBHA), were not consulted before the ministry made its decision, and that the three hotel associations would jointly make an appeal.

Mohamaddin said in Parliament that the implementation of such a tax by countries such as the US, the Netherlands, Italy, Singapore and Thailand had brought positive growth to their tourism sector in the longterm, adding Japan and Saudi Arabia had also recently implemented the tourism tax.

This was Mohamaddin’s first major announcement after his appointment in early July.

MAHO executive director, Shaharuddin M Saaid, added that the three hotel associations would also raise the issue with the ministry about establishing a new mechanism so that hotels do not end up as collecting agents for the tax.

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