Consult Us Before Raising Guest Tax Says Budget Hotel Group

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Hotel guests in Penang are currently charged a fee of RM2 or RM3 a night, depending on the grade of the hotel, but there are plans to raise the fee.
PETALING JAYA: A budget hotel association in Penang has urged the state government to consult the industry before making plans to raise a tax on hotel guests levied by the Penang Island City Council.
The state government’s proposal had come as a surprise to the industry, as no prior discussions were held, said Lau Eng Leong, the Penang chief of the Malaysian Budget Hotel Association.
He said the lack of consultation “disregards industry expertise and risks creating further discontent”.
Lau said the hotel fee, introduced in 2014, was intended to support tourism promotion and had been deposited into a dedicated hotel fee account managed by a committee comprising representatives of the industry and local authorities.
The money was used exclusively for tourism-related events and promotions, with transparent reporting on the amounts collected and disbursed, he said.
However, Lau said recent changes have led to the funds being deposited into the state’s consolidated revenue account. The move compromised transparency and the original intent of the fees, he said.
“Fees must be used exclusively for tourism promotion as initially agreed, and any changes to the fee structure must involve industry input,” he said.
There should also be fair enforcement in the accommodation business, he said, as operators of homestays and Airbnb-type accommodation had not been consistently required to collect the fee.
He said licensed short-term accommodation in commercial properties had been legalised and licensed by the city council. He questioned chief minister Chow Kon Yeow’s decision not to impose fees on these operators on the grounds they were unlicensed.
On Wednesday, Penang island mayor Rajendran Anthony said the state would consider raising its hotel fees by at least 50%, in a move to enhance its tourism offerings and fund related infrastructure.
However, on Friday, Chow said the state government has no immediate plans to raise the fee.
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Visitors who stay at four-star hotels and above currently pay a fee of RM3 per night, while those in lower-grade hotels are charged RM2 a night.- FMT

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