TOURISM associations no longer have to absorb the tourism tax for pre-booked holidays as the tax will only be applicable on bookings starting April 1, says Tourism and Culture Minister Nazri Aziz.

Although the tourism tax goes into effect on August 1, it will only be imposed on bookings for travel dates starting from April 1 next year.

Nazri said the government understood that the associations had committed themselves to the pre-booking prices for tour packages.

“However, they will have to include the tourism tax for their packages that start after April 1, 2018,” Nazri said in a press conference at the Malaysian Tourism Centre in Kuala Lumpur today.

Nazri said those who want the tax exemption would have to write to the ministry.

“The associations or individual tour operators will have to write in to the ministry. They will also have to provide documentation of the pre-booked contracts that were signed.”

Earlier, Malaysia Inbound Tourism Association (Mita) said the tourism ministry would provide incentives for tourism associations, who will pass them on to operators who had to absorb the tourism tax for pre-bookings.

Mita president Uzaidi Udanis, who met with Nazri, said the incentives would come in the form of cash and non-cash assistance.

Mita operators stand to lose RM2.7 million if they were to absorb the tourism tax for advance bookings made by tourists from China until March 31 next year.

Beginning August 1, Malaysians will be required to pay RM20 for five-star and RM15 for four-star accommodations, chargeable on a per room, per night basis. Locals will be exempt from the tax for hotels rated three stars and below. 

Foreign tourists will be charged the same rates, as well as RM10 for three-star, RM5 for two-star, and RM2.50 for non-rated accommodation,  per room, per night.

Nazri, who tabled the tourism tax bill in April, said the government stood to collect RM654.62 million from the tax. – July 6, 2017.