PENANG will keep its hotel levy, said Chief Minister Lim Guan Eng following a statement by Tourism Minister Nazri Abdul Aziz that all states collecting accommodation-based fees will have to stop once the federal government’s new tourism tax comes into force.

Lim said this was “something new” that was not stated in the Tourism Tax Bill, which was introduced on April 4 and passed in the Dewan Rakyat a day later.

“The minister did not talk about stopping the locally collected levies in the states. We were not formally informed by the ministry. This matter was never discussed with the states. 

“I am surprised by his statement. We beg to differ with the minister. Penang’s hotel levy collection will continue,” he told a press conference today at Komtar.

Nazri was quoted by TheSun daily as saying that states collecting charges from hotel guests per night should cease to avoid duplication of charges on tourists.

He said the federal government’s tax was “more efficient”.

Under the new tourism tax, five-star accommodation will be levied RM20 per room per night; four-star (RM10); three to two stars (RM5); and non-rated accommodation (RM2.50).

In Penang, visitors staying at hotels already pay levies of RM3 per night at five- and four-star accommodation, and RM2 per night at hotels with three stars and below. The levy was introduced by the state government in June 2014.

In Langkawi, hotel guests pay the tourism promotion fee of RM9 per night at seven-star hotels, RM7 (six-star), RM5 (five-star), RM3 (three- and four-star), and RM1 (one- and two-star). The fee was introduced July last year.

In Malacca, guests pay the local heritage charge of RM2 per night for all types of rooms.

Lim said Penang would continue its hotel levy collection, which supported tourism promotion efforts in the state.

“The money we have collected is used exclusively to promote Penang tourism. We have consultations through a council where hoteliers and tourism industry players are represented.”

On Monday, Lim proposed that the ministry returned a portion of the tourism tax to the states to allow each to spend on tourism.

The tourism tax issue attracted controversy last week following a public spat between Nazri and Sarawak’s minister in charge of tourism Abdul Karim Rahman Hamzah, who asked for a deferment of the tax in the state.

Sarawak and Sabah have been vocal against the new tax, apart from the Malaysian Hoteliers Association, which said it was unfair that hotels were being made tax collectors. – June 14, 2017.