BIMP-EAGA council welcomes exemption, hopes hotels will not raise rates

KOTA KINABALU: The change made to the tourism tax as announced by Tourism Minister Datuk Mohd Nazri Abdul Aziz, compared to what had been heavily debated few months ago is a welcome relief for local tourists.

“It is expected, however, that issues may arise over its implementation and approach to exclude Malaysians from paying the levy at all hotels irrespective of its standard ranking,” said BIMP-EAGA Business Council vice chairman Carl Mosoom yesterday following Nazri’s announcement in Parliament yesterday that locals staying at hotels, irrespective of whether these are luxury accommodations or otherwise would be exempted from paying the tourism tax.

“As with any tax system, it is expected and to some extent, worrying that such a move by the government may somehow create imbalances in prices.

“In other words, we hope hotel owners will not take advantage of the announcement by the minister and revise or increase their hotels rates,” he said.

“We had issues on the GST implementation, and across the board we felt the pinch in most household items,” he said.

“Therefore we would like to forewarn the ministry concerned to put precautionary measures in place so that Malaysians are not ‘taxed’ unnecessarily out of the price revision exercise by unscrupulous hotel operators (if any). Otherwise, such taxation will only create a negative impact on the tourism industry in general. “

Mosoom, in applauding the minister for announcing the exemption of the tourism tax for all Malaysians, said: “It is clear the Prime Minister and the cabinet are applying the people-first policy approach.

“Sabah will certainly welcome this positive move and hope that the tourism tax revenue will assist to give better promotional impact to the state and its growing eco-tourism and rural tourism products.

Mosoom also gave suggestions on the method of collection and returns for Sabah.

“While I think the levy of RM1 is a good start, RM2 would obviously serve the State better. More is good as we have clearly shown that Sabah tourist arrivals increase yearly except for the minor contraction during the Mt Kinabalu earthquake,” he said, adding that despite the quake, Sabah has maintained her standards and hence, the State deserves every penny.

“But all these are ministerial know-how, we can only hope for a sustainable industry and for our people to benefit the most,” he concluded.