KUALA LUMPUR, May 22 — The Malaysian Association of Tour and Travel Agents (MATTA) has called for the abolishment of the Tourism Tax (TTx), which came into effect on September 1, 2017 charging a flat rate of RM10 per room night on foreigners staying in hotels or registered private accommodation.
Its president Datuk Tan Kok Liang said tourists are welcome to have an enjoyable holiday experience and spend freely on accommodation, food and beverage, tourist attractions and tour excursion, but collecting tax from tourists would be counterproductive.
“The TTx which was initially planned for roll out in August 2017 included Malaysians initially but was later excluded after a public uproar, as it was decided without proper engagement with tourism industry players.
“MATTA has objected and expressed concerns to the Ministry of Tourism and Culture on the tax from day one, as it would have impacted the tourism industry, particularly price sensitive tourists as well as long-haul travellers who spend longer durations in the country,” he said in a statement issued today.
He also said that Malaysia’s tourism sector is trailing behind neighbouring countries Thailand, Singapore and the Philippines.
“The tourist arrivals for Asean countries have recorded positive growth in 2017, with 7.8 per cent increase for Thailand, 6.2 per cent increase for Singapore and 11 per cent increase for Philippines. Whereas visitor arrivals to Malaysia dropped by three per cent with 25.95 million tourists last year compared to 26.76 million in 2016,” he said.
Tan further said that putting up more barriers may deter tourists from choosing Malaysia as a preferred holiday destination.
“Without the tax, the foreigners would be delighted to come to our country, stay longer and spend more freely. Furthermore, the amount of tax that could be collected will only be a fraction of what the government could gain from other forms of taxes, which are less obvious compared to in-your-face tax.
“We urge the Ministry of Finance to review the current tax rate and abolish it, as both hotel and tour operators have been affected by its introduction,” he said.
Tan added that MATTA is ready to contribute to the discussions with the relevant ministries in reviewing and abolishing the tax. — Bernama
Source: https://www.malaymail.com/s/1633815/matta-calls-for-end-to-tourism-tax