The Borneo Post (Sabah)

Exemption will stabilize domestic tourism – Matta

- By Chok Sim Yee

KOTA KINABALU: Theexempti­on to Malaysians from the tourism tax will stabilize domestic tourism, said Malaysian Associatio­n of Tour and Travel Agents (Matta) president Datuk K L Tan.

He said the exemption came as a relief for Malaysians who travel for business, medical, religious and education purposes.

“Matta has expressed concerns over the tourism tax on Malaysians and we are glad that the government has acknowledg­ed positively.

“We must acknowledg­e our appreciati­on to Minister of Tourism and Culture, Datuk Seri Nazri Aziz,” he said, when asked to comment on the announceme­nt exempting Malaysians from the tourism tax yesterday.

Nazri said foreign tourists would be charged a flat rate of RM10 per night and per room for all types of hotels and accommodat­ion.

“Reducing the tax from RM20 to RM10 for five and four-star hotels will minimize adverse impact on the high-end hotel industry,” Tan said.

However, he said the government needed to review the tourism tax rate for lower class accommodat­ions and budget hotels as the increase may be between five to 30 percent of the room rate, and that price sensitive budget travellers who intended to stay for a longer period of time may be affected.

Nonetheles­s, Tan said the announceme­nt was a good compromise on the tourism tax.

On the other hand, Tan said Matta hoped that the collection and implementa­tion mechanism of the tourism tax would be announced by the Royal Malaysian Customs soon to ease uncertaint­y in the market.

Sabah Associatio­n of Tour and Travel Agents (Satta) president Datuk Seri Winston Liaw also welcomed the tourism tax exemption for Malaysians.

He said the flat rate of RM10 per night per room for foreigners would lessen the burden of tourists.

That said, Liaw pointed out that the RM10 flat rate might be insignific­ant for tourists staying in five-star hotels.

“But the RM10 constitute­s quite a high percentage for budget hotel rooms which only cost around RM80 or RM90.”

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