NOW that Penang will get a share of the proceeds on tourism tax by the federal government, the state government will consider whether or not to continue implementing hotel room fees.
Chief Minister Chow Kon Yeow said the state would review the hotel room fees introduced since 2014.
Finance Minister Lim Guan Eng, the predecessor of Chow as the chief minister of Penang from 2008 until May 2018, had announced 50% of proceeds on tourism tax, estimated at RM50 million to be shared with all states in tabling Budget 2019 on Nov 2.
“Penang could get more than RM10 million from the tax collection. We will use the funds channel back to us by improving tourism services and promoting Penang,” Chow said.
Based on the hotel room fees introduced, visitors are required to pay RM3 per room per night in hotels above four stars and RM2 per room per night for hotels three-stars and below.
Chow said the revenue collected is used for tourism promotion activities as decided by a committee, comprising stakeholders like the Malaysian Association of Hotel (MAH) Penang and related government agencies.
Story by K.H. Ong
Pix by Adleena Rahayu Ahmad Radzi
Video by Chan Kok Kuan