‘Many budget travellers reluctant to pay tax’

MELAKA: Budget hotel operators in the state are having a hard time collecting the RM10 tourism tax from foreigners, which was implemented on Sept 1.

State Malaysia Budget Hotel Association chairman Goh Hock Gin said many foreigners were unhappy with the tax, with some causing a scene at registration counters.

“Many of them are refusing to pay the RM10 tourism tax and we are facing operational problems.

“Some customers who had prebooked with us walked off, although we had re- served rooms for them.

“Some made a lot of fuss at the counter and to avoid the ugly scene, we had no choice but to absorb the cost,” he told the New Straits Times yesterday.

Goh, speaking on behalf of 150 budget hotel operators in Melaka, said budget hotels were the ones most affected by the implementation of the tourism tax because travellers opting for these hotels were trying to minimise their travelling expenditures.

“If the room rate is RM50 per night, an additional RM10 would be an adjustment of a 20 per cent increase. This is a lot for budget travellers.

“Some of our room rates are as low as RM40 per night.

“Those who can afford to stay in four-star or fivestar hotels will not have a problem forking out an additional RM10, but this is not the case with budget travellers,” he said.

Goh suggested that the government collect the tax at the entry and exit points in Melaka instead of making the operators do the collection.

If the room rate is RM50 per night, an additional RM10 would be an adjustment of a 20 per cent increase. This is a lot for budget travellers.

GOH HOCK GIN Melaka Malaysia Budget Hotel Association chairman