Malaysian Association of Tour and Travel Agents (MATTA) had expressed concerns on the tourism tax fee on Malaysians and we are glad that the government has acknowledged positively.
The exemption for all Malaysians will stabilise domestic tourism as well as a relief for essential travellers on business, medical, religious, education purposes. We must acknowledge our appreciation to Minister of Tourism.
Reducing from RM20 to RM10 for 5 star and 4 star hotels will minimise adverse impact on the high end industry.
However, we need to review the lower class category accommodation providers and budget hotels as the increase may be between 5 percent to 30 percent of the room rate. Long stay budget travellers that are price sensitive may be affected.
Minimum impact, with the extra funds spend on tourism infrastructure development, Malaysia will enhance its ranking as a preferred holiday destination.
We hope the collection and implementation mechanism will soon be announced by Royal Malaysian customs to ease uncertainty in the market and implementation date on 1 April 2018 would be an ideal scenario.
Overall, a good compromise.
DATUK TAN KOK LIANG