No tourism tax for three star hotels

KUALA LUMPUR: Malaysians who stay in three star hotels and resorts will not need to pay tourism tax said Datuk Seri Mohamed Nazri Abdul Aziz.
The Tourism and Culture Minister said that this is in line with efforts to promote domestic tourism.
"This is an incentive to support domestic tourism. Malaysians who stay in three star hotels and resorts will not need to pay tourism tax. Those who stay in five star, they can bloody well afford it. Please make your contribution," he said during a press conference Malaysia Tourism Centre (MaTiC), here, today.
Nazri added that most Malaysians stay in three star establishments when they are on holidays.
The Tourism Tax rate is fixed at RM20 per room per night (five-star), RM10 per room per night (four-star), RM5 per room per night (one-, two- and three-star), RM2.50 per room per night (one, two and three Orchid) and RM2.50 per room per night (non-rated accommodation premises).
He also said that Tourism Tax will be imposed on rooms booked via Airbnb, however only premises with 6 rooms and above will be taxed.
"Moving forward rooms on Airbnb will also need to pay Tourism Tax. Only for those with 6 rooms or more. My ministry is now going on the ground to register the establishments," he said.
When asked how will the rates be imposed on the rooms, Nazri said that the rooms will be rated according to the facilities provided.
"We will rate them according to the facilities they provide. If the facilities are like three star, we will charge them three star rates, if like five star, we will charge them five star rates."
He clarified that homestays and homes run by charity and religious organisations will not be taxed.
Addressing concerns about group cancellations with the Tourism Tax taking effect, the minister said any establishments or agencies with valid contract will be exempted from the tax until March next year.
"We have taken considerations that contracts have already been signed. When the Tourism Tax bill was tabled early this year, there is a provision for a minister to give exemption to certain groups. Given that there is already an agreement made, we can grant them the exemption," he said.
Nazri said all those with valid contracts can write in to get the tax exemption.
Peninsular Malaysia has 83% of leaseable rooms in Malaysia while Sarawak has 7%, Sabah has 9% and Labuan has 1%.
Tourism Tax will be collected by the Customs Department.