Policy on tourism tax shows govt willing to listen, says Mita

PETALING JAYA: The decision to set tourism tax at a flat rate of RM10, and grant exemption to Malaysians, shows the government is willing to listen to industry players on grouses raised over the controversial tax, said Malaysian Inbound Tourism Association (Mita) president Uzaidi Udanis.
"The concept of tourism tax is sort of a joint venture between the government and the private sector.
"Now that the announcement is made, we are looking forward to ensuring that proceeds from the tax will be used consistently and aggressively to promote tourism," he said today.
He said the current occupancy rate at hotels throughout the country is about 60%.
"We hope proceeds from the tax will help us ramp up promotions. Anything below 50% occupancy will be calamitous for tourism industry players."
He was commenting on an announcement by Tourism and Culture Minister Datuk Seri Mohamed Nazri Abdul Aziz that Malaysians will be exempted from paying the tax, that is expected to be implemented on Aug 1.
Foreign tourists will be charged a flat rate of RM10 per night per room for all types of accommodation, except premises with less than five rooms.
Malaysian Association of Hotels (MAH) president Samuel Cheah expressed support for the move.
"However, the issue will be how the Customs Department handles the tax collection from foreigners.
"It would be a tough call for hoteliers, as not all of them are under MAH. Issues will also crop up in terms of foreigners booking homestays via hospitality apps such as Airbnb or Agoda," he said.
He suggested tourism tax be imposed at entry points so that hoteliers would not be burdened with collecting such payment.