Possible incentives to offset tourism tax
KUALA LUMPUR: The government may introduce incentives for tour operators registered under the Tourism and Culture Ministry to cushion their loss from group booking cancellations due to the tourism tax.
Malaysian Inbound Tourism Association (Mita) president Uzaidi Udanis said Tourism and Culture Minister Datuk Seri Mohamed Nazri Abdul Aziz had assured him that incentives and considerations could be given to inbound tour agencies with valid contracts in the country.
This, he said, was following a meeting between the ministry and Mita, Malaysian Tourism Council and Malaysia Chinese Tourism Association on Tuesday.
The meeting was to address possible tour cancellations from abroad following a price increase due to the tourism tax.
“The minister is aware of the situation faced by tour operators who mostly have set their group booking contracts until March 31, 2018.
“He has given his assurance that considerations and incentives may be given to operators to offset cancellations of inbound group bookings into the country.
“But we don't know what sort of incentives will be given. The incentives will ensure tour groups did not cancel their reservations due to rising costs in accommodation,” he said yesterday.
He said such incentives were not new as the ministry had incentives to help tour groups through Malaysia Convention and Exhibition Bureau and Tourism Malaysia.
Mita secretary-general Adam Kamal said the government expected to collect RM2.7 million in tourism tax from Chinese tourists from Aug 1 to year end.
He said by having incentives, tour operators would not need to fork out their own money to honour their contracts ratified with overseas travel agencies.
“The contracts have been signed, so the incentives can come in any form to lessen their (operators) costs.”
The tax rate is fixed at RM20 per room per night (five-star hotel), 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 (nonrated accommodation premises).