Is the RM10 per night tourism tax fair for all hotels?

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The RM10 per night tourism tax is not considered fair for all hotels by the Malaysian Association of Hotels.

The Malaysian Association of Hotels has voiced strong opposition to the RM10 per room per night tourism tax, asserting that its flat-rate structure is detrimental to the industry. This tax, which applies to foreign hotel guests, is perceived as discouraging longer stays due to the nightly charge, regardless of the hotel's classification or the guest's duration of stay.
Flat Rate Discourages Extended Stays

The association's president, Cheah Swee Hee, explained that a uniform RM10 charge for every night of a guest's stay disincentivizes tourists from extending their visits. This approach, he argued, does not adequately encourage long stays, as the cost accumulates nightly for foreign visitors.
Lack of Differentiation Across Hotel Types

The current tourism tax imposes the same RM10 fee per room per night on all foreign guests, irrespective of the hotel's star rating. This uniform application fails to account for the diverse range of services, amenities, and operational costs associated with different tiers of accommodation, from budget guesthouses to luxury establishments.
Call for Regulatory Reform

Beyond the tourism tax itself, the Malaysian Association of Hotels has also advocated for new regulations concerning unlicensed accommodation providers, such as those operating through platforms like Airbnb. The association believes that establishing a more equitable regulatory framework is essential to ensure a level playing field for all players within the hospitality sector.

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Is the RM10 per night tourism tax fair for all hotels?

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