Malaysia’s travel trade unites for Selangor Super Savers 2025 campaign

 

Tourism Selangor’s Chua Yee Ling (fourth from left) joins Malaysian Association of Hotel Owners’ Shaharuddin M Saaid (third from left) and Malaysian Association of Hotels Selangor Chapter’s Jasmine Abdullah Heng (third from right) in the launch of Selangor Super Savers 2025

The travel trade has come together in a united, strategic move to bolster Selangor’s tourism sector in line with its Visit Selangor Year 2025 campaign.

The Malaysian Association of Hotels Selangor Chapter (MAHSEL) and the Malaysian Association of Hotel Owners (MAHO) launched the Selangor Super Savers 2025 (SSS2025) campaign last month, with strong support and participation from the Malaysian Association of Theme Parks & Family Attractions and the Malaysia Shopping Malls Association.

This initiative aligns with Tourism Selangor’s Visit Selangor Year (VSY) 2025 campaign under the theme, Surprising Selangor, which aims to attract eight million international and domestic visitors to Selangor and generate RM11.7 billion (US$2.6 billion) in tourism receipts.

Jasmine Abdullah Heng, chairman of the Malaysian Association of Hotels Selangor Chapter, said: “SSS2025 aims to position Selangor as a must-visit destination by fostering collaboration among key industry players, including hotel operators, theme parks, attractions, and shopping malls.

“The campaign offers exclusive promotions and benefits to visitors, enhancing their overall travel experience in the state.”

The campaign was officially launched by Chua Yee Ling, chief executive officer of Tourism Selangor, who also unveiled the campaign’s dedicated digital portal, selangorsupersavers.com. The platform enables travellers to access a range of stay packages, including a minimum of 10 per cent off Best Available Rates, F&B credits, and late check-outs until 15.00.

Additionally, the campaign extends up to 10 per cent discounts on meeting and wedding packages across more than 20 participating hotels in Selangor. Guests staying in any of the participating hotels can also enjoy perks and discounts at participating theme parks and shopping malls in Selangor.

All offers, packages, and discounts are valid for six months from March 1, unless otherwise stated and subject to partners’ terms and conditions.

Shaharuddin M Saaid, executive director of MAHO, shared that the listing on the website is not yet complete, as more participating hotels and malls in Selangor have registered their interest to join the campaign.

He added that both MAHSEL and MAHO are working on Phase 2 of SSS2025, which will see further support from industry players, including airlines. The campaign will run until the end of 2025.

Industry players are encouraged to participate in Phase 2 of the initiative, which is expected to attract additional stakeholders, including airlines, and extend benefits until the end of 2025. This campaign serves as a lead-up to Visit Malaysia Year 2026, which aims to welcome 26.1 million tourist arrivals and generate RM97.6 billion in domestic spending.

-TTG Asia.

MY Ramadan Experience 2024 Packages Offer Exciting Experience For Visitors

 

SHAH ALAM, 15 JANUARY 2024 – The Ministry of Tourism, Arts, and Culture through its agency Tourism Malaysia in collaboration with Islamic Tourism Centre (ITC), Malaysian Association of Hotels (MAH), and Malaysian Association of Hotel Owners (MAHO), proudly announces the launch of the highly anticipated MY Ramadan Experience packages. This immersive 4D3N or 3D2N programme offers an unparalleled opportunity to immerse oneself in the vibrant festivities of Ramadan in Malaysia.

Representing a collective effort, the programme harnesses the expertise of Tourism Malaysia, MAH, and MAHO to curate an extensive list of hotels offering enticing accommodation packages. These meticulously crafted packages include a complimentary Iftar for two, ensuring that participating hotels possess the prestigious "Halal Kitchen" certification from the Department of Islamic Development Malaysia (JAKIM).

MY Ramadan Experience showcases a diverse array of highlights that invite participants to explore Ramadan bazaars, indulge in Iftar at major mosques, engage in government/NGO-led Iftar programmes, experience the excitement of Hari Raya sales events, and partake in hands-on activities such as cooking bubur lambuk.

With a focus on both local and international tourists, the programme aims to highlight the allure of visiting Malaysia during this holy month. The vibrant cities of Kuala Lumpur, Putrajaya, and Selangor take centre stage, offering an unforgettable cultural experience.

In a concerted promotion of the programme, Tourism Malaysia has published a meticulously crafted brochure that showcases the diverse offerings of the unique 'MY Ramadan Experience 2024' and also highlights specially curated packages developed in collaboration with travel agents and product operators.

YB Deputy Minister Khairul Firdaus Akbar Khan expresses profound enthusiasm, stating, "Malaysia, with its rich Islamic heritage, diverse traditions, and warm hospitality, stands as an ideal destination for those seeking a meaningful Ramadan experience. We cordially invite tourists from around the world to experience the beauty of Malaysia during the holy month of Ramadan—a time of deep spirituality, cultural richness, and warm hospitality."

Dato' Dr. Ammar Abd Ghapar, Director General of Tourism Malaysia, echoed the sentiments of YB Deputy Minister, stating, "The MY Ramadan Experience packages signify our commitment to providing unique and enriching cultural experiences for tourists. We invite tourists to immerse themselves in the vibrant tapestry of our culture and make lasting memories during this sacred month.”

“As we prepare for the much-awaited Visit Malaysia 2026, industry players and stakeholders are welcome to develop tourism packages that showcase Malaysia’s cultural diversity, Halal food, and unique experiences alongside tourism and hospitality products and services that warmly welcome tourists from all over the world. Aside from attracting Muslim travellers, we can also introduce our unique Islamic celebrations, customs, heritage and experience to eager non-Muslim tourists,” urge Nizran Noordin, Director-General of MOTAC’s Islamic Tourism Centre (ITC).

Staying true to their words in championing Islamic Tourism in Malaysia, ITC along with the Malaysian Inbound Chinese Association (MICA) are hosting the ongoing Imam Fam Tour: Discover Muslim-Friendly Malaysia, taking place from 10 until 16 January 2024. A total of 35 Imams from 14 provinces of China are taken to familiarise themselves with the country’s hospitality and cultural diversity and share their experiences with their respective communities back home.

To explore the exciting range of options for a memorable Ramadan adventure, visit www.malaysia.travel and navigate to the Deals and Packages segment.

-Tourism Malaysia.

Tawaran Menarik Penebusan E-Baucar Oleh Pusat-Pusat Penginapan Di Bawah Pelan Pemulihan Pelancongan 2022

KUALA LUMPUR, 13 Julai 2022 – Kementerian Pelancongan, Seni dan Budaya (MOTAC) melalui Tourism Malaysia hari ini melancarkan Pelan Pemulihan Pelancongan 2022 (PRE2.0) bagi Kluster Penginapan dalam usaha menyemarakkan pelancongan domestik seiring peralihan ke fasa endemik.

 

Pelan Pemulihan Pelancongan 2022 yang merupakan kesinambungan daripada Pakej Rangsangan Ekonomi (PRE 1.0), adalah salah satu inisiatif di bawah Pelan Pemulihan Industri Pelancongan yang melibatkan penyaluran insentif kepada rakyat Malaysia dalam bentuk diskaun, baucar dan rebat.

 

Di bawah Kluster Penginapan, dianggarkan seramai 33,830 rakyat Malaysia berpeluang menebus tawaran e-baucar bernilai antara RM50 sehingga RM100 menerusi pembelian bilik penginapan hotel secara atas talian melibatkan hotel-hotel seluruh Malaysia bermula 15 Julai 2022 sehingga 31 Disember 2022. Penebusan adalah terhad untuk tiga kali penebusan sahaja bagi setiap pemilik MyKad.

 

Antara pusat penginapan yang terlibat adalah hotel-hotel di bawah Persatuan Hotel Malaysia (MAH), Persatuan Pemilik Hotel Malaysia (MAHO), Persatuan Hotel Bajet dan Bisnes Malaysia (MyBHA) dan Rangkaian Hotel Seri Malaysia (HSM).

 

Menteri Pelancongan, Seni dan Budaya, YB Dato' Sri Hajah Nancy Shukri berkata, pelancaran inisiatif ini bertujuan menarik minat orang ramai khususnya Keluarga Malaysia untuk terus membuat tempahan bilik penginapan hotel pada harga diskaun yang istimewa dan seterusnya melaksanakan aktiviti pelancongan domestik.

 

“Kerjasama strategik yang dijalinkan oleh Tourism Malaysia bersama persatuan-persatuan ini disasarkan untuk merangsang kembali pemulihan industri pelancongan sekali gus menyumbang kepada pemulihan ekonomi negara secara keseluruhan,” katanya.

 

Persatuan Hotel Malaysia (MAH) dan Persatuan Pemilik Hotel Malaysia (MAHO) akan menawarkan e-baucar bernilai RM100 dengan nilai pembelian minimum RM150 untuk 19,900 pembeli terawal manakala Persatuan Hotel Bajet dan Bisnes Malaysia (MyBHA) menawarkan e-baucar bernilai RM50 dengan nilai pembelian minimum RM60 untuk 7,960 pembeli. Kesemua e-baucar boleh diperolehi di aplikasi Shopee.

 

Rangkaian Hotel Seri Malaysia (RHSM) pula menawarkan rebat bernilai RM50 dengan nilai pembelian minimum RM170 (bilik standard) atau RM210 (bilik keluarga) untuk 5,970 pembeli terawal. Tempahan di Rangkaian Hotel Seri Malaysia boleh dibuat secara jumpa terus (walk-in), e-mel atau telefon.

 

MOTAC melalui agensi promosi Tourism Malaysia telah melancarkan program PRE2.0 pada 17 Mei 2022 yang memberikan tawaran diskaun dan rebat di bawah sektor persatuan agensi pelancongan, pengangkutan darat, taman tema, selam skuba, inap desa dan pengangkutan udara.

 

Secara keseluruhannya, Program Pelan Pemulihan Pelancongan (PRE2.0) ini akan memberikan manfaat kepada semua Warga Keluarga Malaysia untuk menikmati inisiatif yang telah ditawarkan oleh pihak Kerajaan Malaysia.

-Tourism Malaysia.

Over 80 attend conference on Sabah, Sarawak tourism potential

KUALA LUMPUR, June 18 (Bernama) -- The Conference on Tourism Potential in Sabah and Sarawak organised by the Malaysian Investment Development Authority (MIDA) received over 80 participants from the Malaysian Association of Hotel Owners (MAHO), Malaysian Association of Amusement Themepark and Family Attractions (MAATFA), hoteliers, tourist attraction operators and business chambers among others.

The conference, held at MIDA Sentral here today, focused on ensuring that the domestic tourism industry players were well informed about the hospitality ecosystems in Malaysia and to encourage new investments into Sabah and Sarawak, MIDA said in a statement today.

“As such, it featured presentations by the Healthcare, Education and Hospitality Division of MIDA, MOTAC and MIMOS Bhd, several panel discussions and one-to-one networking session between the participants and MIDA, MOTAC, KePKAS, MTACYS, SEDIA, MyCEB, MAHO and MAATFA,” it said.

Catherine Ridu, senior director of the services sector development division at the Ministry of International Trade and Industry (MITI), said with the upcoming Visit Malaysia 2020 campaign, Malaysia hopes to target 30 million international tourists and RM100 billion in tourist receipts.

“There are many exciting opportunities for our domestic tourism stakeholders, especially those in Sabah and Sarawak, to support this landmark campaign. Therefore, it is crucial for us to strategically position our domestic tourism industry and maximise its capacity to propel the country’s economic transformation,” she said.

-bernama.
http://www.mida.gov.my

Hopes high as Malaysian trade awaits details on zero-rated GST

While the GST removal is good news, stakeholders in Malaysia are seeking

details on the new SST in order to price their tours

With the Harapan Coalition now in power, Malaysia’s travel trade is looking forward to the promised reduction of the Goods and Services Tax (GST) to a zero rate beginning June 1, down from the current six per cent, effectively scrapping the consumer tax implemented on April 1, 2015.

The GST will be replaced by the Sales and Services Tax (SST), which will only kick in after the government makes a decision on it, likely after the zero-rated GST is effected in June.

While welcoming the zero-rated GST, the Malaysian Association of Tour and Travel Agents (MATTA) and Malaysian Association of Hotel Owners (MAHO) are currently seeking clarification from the Royal Malaysian Customs Department on details of the GST removal and implementation of the new SST system.

MATTA president, KL Tan, said: “It is not entirely clear whether GST needs to be charged for tours sold before June 1, 2018 but with a travel date on or after June 1, 2018.

Still, he expects the removal of the GST to ultimately grant a “discount” on the price of local tour and travel, which is likely to in turn boost the domestic travel industry.

Tan added: “The ‘zero per cent GST’ is bound to promote spending by both locals and tourist especially on Malaysian shopping and F&B, including tourist attractions, thus potentially increasing the price appeal of Malaysia as a travel destination and encourage more tourist spending.”

Likewise, MAHO’s executive director Shaharuddin Saaid expects the lower price of hotel rooms and services to buoy domestic and inbound tourism, in addition to spurring non-room spending in hotels in the interim period between June 1 and the introduction of the SST.

MATTA’s Tan added that the policy shift will also bring consistency in GST treatment between Designated Areas – Labuan, Langkawi and Tioman, which are tax free destinations, with the rest of Malaysian travel locations.

Meanwhile, Diethelm Travel Malaysia managing director, Manfred Kurz, expressed concern over the lack of information about the SST.

He said: “Contracts for 2019 have to be finalised by end of May because many tour operators in Europe start printing their brochures in July and selling in September. We cannot give them details about the SST such as how many per cent it will be because at this point – no one knows. What will it include – transportation, entrance fees to attractions? We don’t know at this time.

“Our strategy is to be very open with our partners. We have informed them that the GST will be zero-rated from June 1 and that the SST will be reintroduced at some point in the near future. We will keep them updated when we get more information, and advise them not to publish lower rates in their new brochures.”

-TTG Asia.

With a new government, Malaysian hotels urge review of tourism tax

Hotel associations had opposed the tax leading up to its implementation,

saying it impinges on the destination’s price competitiveness

With the Malaysian cabinet set for a refresh following Mahathir Mohamad’s landmark election victory and return to the post of prime minister, the country’s three main hotel associations are taking the chance to resurface their objections surrounding a tourism tax that came into effect in September 2017.

Diminished competitivenessespecially in the budget hotel sector and hotels’ unwillingness to be made “collecting agents” for the tax are among the issues highlighted by the Malaysian Association of Hotel Owners’ (MAHO), Malaysian Association of Hotels (MAH), and Malaysia Budget Hotel Association (MyBHA).

This comes as the government announces a reduction of a goods and services tax introduced in 2015 to zero.

MAHO executive director, Shaharuddin M Saaid, shared with TTG Asiathat the association will push for an overall review of the tourism tax so that it does not hurt inbound arrivals.

Shaharuddin said: “A RM10 (US$2.50) tourism tax per room per night at a budget hotel that costs RM50 to RM80 per room per night is too much for guests to pay. The budget hotels complain that they are losing business because of this tax.”

The association hopes to recommend putting a new mechanism in place to free hotels of the tax collection role they have reluctantly assumed.

In addition, the three hotel associations had last year proposed that the government introduce an exit tax that should be collected at the airports and borders and imposed on foreign tourists. Shaharuddin said: “We will most likely bring up this proposal again.”

Under the system, foreign tourists are charged a flat rate of RM10 per night and per room and Malaysian citizens and permanent residents are exempted from paying the tax.

-TTG Asia.

Opposition to tourism tax not letting up in Malaysia

In Malaysia, the unpopular tourism tax will be enforced nationwide on September 1 but grievances continue to pour in from local hoteliers and agents.

Among them, any tourist who checks in early or checks out late at hotels from September 1 will be made to pay a tourism tax of RM10 (US$2.34) for the extension, on top of the RM10 tax per room, per night.

“It is unfair but hotels have no choice but to charge because we have no letter in black and white from the government telling the hotels otherwise. If we don’t charge the guest, the hotel will have to pay the tax for the guest,” revealed Shaharuddin Saaid, Malaysian Association of Hotel Owners (MAHO) executive director.

Guests who receive complimentary rooms from hotels will also have to pay the tourism tax.

Other issues brought up at the meeting last week with Royal Malaysian Customs Department, the Ministry of Finance and the Ministry of Tourism and Culture include whether budget accommodation operators with dormitories of four to six beds are going to charge guests.

Shaharuddin challenged: “Do you charge only one person, or every guest in the room? Also with such budget accommodation where the room rates are as low as RM100, the tourism tax of RM10 per room per night is more than the Goods and Services Tax (GST) of six per cent. This is unfair!”

He had also expected a certain amount of confusion in the early days of implementation. He said: “Tourists may argue with hotels and refuse to pay. We will then be made responsible and pay on their behalf. The government had also not given enough time for hotels to upgrade their accounting systems to facilitate the collection of the tourism tax. The GST should not be charged on the tourism tax but if the systems have not been upgraded properly, this may show."

He opined that the tax will also have an impact on long stay guests such as corporate clients. The association had proposed a cap on the number of days the tax can be applied to, regardless of the number of days the guest is staying.

“We have also stressed to the authorities in our last meeting that starting the tourism tax on September 1 gives unlicensed accommodation operators in the country an unfair advantage as they have not been registered with the Ministry of Tourism and Culture to collect the taxes. There are more than 8,000 of them listed on accommodation portals like Booking.com and Airbnb website.”

Moreover, the exemption for clients of agencies that have signed contracts with overseas partners for the current contracting period until March 31, 2018 will not be implemented without an official letter from the Ministry of Tourism and Culture.

Nanda Kumar, managing director of Hidden Asia Travel & Tours, said the agency still has to pay over RM120,000 in tourism tax to hotels for advance bookings made before the tax was introduced.

Update

The Royal Malaysian Customs Department issued a circular on August 29 stating:

- no tourism tax will be levied on early check-in and late check-out so long as no room charges are imposed. However, complimentary stays offered by an operator to a tourist will still be subject to the tax;

- in cases where more than one tourist is staying in the same accommodation at the same time, e.g. dormitory arrangement, and the tourism tax for that accommodation has been paid by any one of the tourists, the other tourists are not liable to pay tourism tax for that accommodation.

-TTG Asia.

No word yet on Malaysia's tourism tax implementation date

The Malaysian trade is still in the dark over the implementation date of the tourism tax, as to date there is no official word from the Ministry of Tourism and Culture (MOTAC) and Royal Malaysian Customs Department (RMCD).

Shaharuddin M Saaid, executive director of Malaysian Association of Hotel Owners, told TTG Asia: “The hotel associations have made a stand not to do anything until we have something in black and white. We cannot be depending on news from the media. We need official documentation!”

Efforts by several hotels to reach out to the RMCD for registration forms were in vain, said Shaharuddin. They were following an earlier announcement on the RMCD website stating that the registration of accommodation premises would begin effective July 1, 2017. The notice is no longer online.

Moreover, Shaharuddin yesterday revealed that the joint memorandum sent early this month by the three major hotel associations in Malaysia has not been acknowledged by any of the recipients, namely the Ministry of Finance, RMCD and MOTAC.

Jason Ow Yeang, managing director of Columbia Leisure, said: “If the tourism tax is imposed before the next contracting period, starting April 1, 2018, we stand to lose between 25 to 40 per cent of our business.”

He added: “With profit margins so thin, we cannot afford to absorb the tourism tax which will be a minimum of RM100,000 every month, based on our volume of business.

“We understand that the government needs money for international promotions. But you cannot simply implement a new tax without studying the implications and the complications. We have spent so much to promote Malaysia, and the poor implementation of this new tax threatens to unravel our good efforts,” he lamented.

-TTG Asia.

Malaysia's tourism tax an 'unfair' levy to hotels while others get away

Malaysia will from July 1 implement the tourism tax on all types of accommodation premises serving tourists, according to a Bernama report quoting tourism and culture minister Mohamed Nazri bin Abdul Aziz.

Exemptions are made for homestays and kampong stays registered with the Ministry of Tourism and Culture (MOTAC), accommodation premises established and maintained by religious institutions not for commercial purpose, and accommodation premises with less than 10 rooms.

The tax rate starts at RM2.50 (US$0.60) per room per night for lower-tier and non-rated accommodation and goes up to RM20 per room per night for five star accommodation.

Registered operators are liable to collect the tourism tax from guests upon their departure and pay them to the Royal Malaysian Customs Department (RMCD). The tax revenue will be used for tourism development.

However, the Malaysian Association of Hotels (MAH), Malaysian Association of Hotel Owners (MAHO) and Malaysia Budget Hotel Association (MyBHA), which had earlier voiced their objections when the tourism tax bill was passed in parliament, yesterday submitted a joint memorandum to the Finance Ministry, RMCD and MOTAC to express their concerns in response to the latest announcement.
  

MAH president, Cheah Swee Hee, stated that making registered hotels to collect the taxes is "not fair and equitable", as it does not appropriately capture all participants in the marketplace or tax equally the participants that are subjected to the tax.

He explained: “Under the current model, hotel operators that have been registered with MOTAC are automatically included in the scope of the tourism tax. However, based on data that is available on MOTAC and what is available from other publicly available sources, we have identified that less than 15 per cent of accommodation providers in Malaysia are registered with MOTAC.”

According to the joint press release from the three associations, in terms of real numbers there are 3,126 accommodation providers registered with MOTAC. However, there are 9,578 accommodation providers listed on Agoda.com and a further 11,698 accommodation providers listed on Airbnb. Based on the available data, there are 6,452 unregistered hotel providers and a further 11,698 operators who provide accommodation through Airbnb.

MAHO president, Teo Chiang Hong, remarked: “With the introduction of the tax, it would create an uneven playing field, and could encourage more tourists to book with unregistered and unlicensed hotels due to the lower cost. This could also encourage hotels to follow suit and change their rating or their operating model. All of these actions would result in an even lower occupancy rate and lower tax revenues for the government.”

Sharing similar sentiments, Anthony Wong, managing director at The Frangipani Langkawi Resort & Spa, opined it was unfair that Airbnb operators get away from paying the tourism tax because they are unlicensed and unregulated by the government.

"They get to charge a lower rate whereas hotels have to apply for 38 business permits before they can open. On top of that, we have to pay GST, liquor license, fire insurance liability license and property tax. The government should look at providing a level playing field,” he said.

The hotel associations also object to being made the collection agent as it involves updating pricing documentation and enhancing the operating and accounting systems to enable the tax to be collected and invoices to be issued.

MAHO executive director, Shaharuddin M Saaid told TTG Asia: “It is not fair to the hotels. It is unclear if we are getting financial assistance from the government. Why rush to implement (the tax) when these issues are not addressed? We propose that the implementation of the tax be postponed by six months. If we don’t register with the Royal Malaysian Customs for the tourism tax collection, we are fined RM30,000 (US$7,040). Why should we be penalised?”

He added that the hotel associations had proposed in their joint memorandum for the government to instead introduce an exit tax for foreign tourists to be collected at the airports and borders.

Manfred Kurz, managing director at Diethelm Travel Malaysia, opined: “This is not the right time to implement the tax as tourism is slowly recovering into Malaysia. The more price-sensitive tourist may think twice about coming to Malaysia and instead visit competing destinations such as Bali or Thailand that doesn’t have such a tax.

-TTG Asia.

Hotel associations troubled by Tourism Tax Bill, reject role as tax collection agent

(File pix) Malaysian Associations of Hotels’ president Cheah Swee Hee

PUTRAJAYA: Hotels should not be made ‘tax collection agents’, charging government taxes on tourist staying at hotels in Malaysia.

Three major hotel associations have expressed its concerns and disagreement on the Tourism Tax Bill which was passed in Parliament two weeks ago.

The associations were Malaysian Associations of Hotels (MAH), Malaysian Asociation of Hotel Owners (MAHO) and Malaysia Budget Hotel Associations (MyBHA).

MAH Cheah Swee Hee said it was unfair to make hoteliers as scapegoats to collect tax money on behalf of the government.

“While the Bill had been passed in Parliament, the association and its members are still unclear on the mechanism as to how the tax would be collected and it collectively opposed the proposed implementation making hotels as tax collection agent, which is detrimental to the hotel and the tourism industry.

“It is unfair for the hotel industry to collect this tax as tourists only spend 25 per cent of the expenses on accommodation and the rest goes to shopping, transportation and food,” he told reporters during a special press conference today.

Cheah said the associations were also unclear of how the tax will be applicable to accommodation providers such as AirBNB and unlicensed hotels.

“We are unsure how the government will impose such tax on them when they should be closed in the first place,” he stated.

According to Cheah, there were 3,046 accommodation premises registered with the Tourism Ministry as of November last year. However, at any one time, there were over 8,500 tourist accommodation premises available for booking in Malaysia via booking websites such as Agoda.com and this doesn’t include accommodations on AirBnB.

-nst online.

Malaysia's hotels shoulder 'unfair' tourism tax burden, say association heads

(Front row from left) MAHO's Shaharuddin and Mohamad Halim Merican;

MAH's Cheah; and MyBHA's Leong

Malaysia’s hotel associations are voicing their concerns about having to bear additional costs of the tourism tax bill recently passed in parliament, and are banding together to suggest alternatives means of sustainable funding for tourism development.

Unable to get a meeting with the government to address their concerns, Malaysian Association of Hotels (MAH), together with Malaysian Association of Hotel Owners (MAHO) and Malaysia Budget Hotel Association (MyBHA), held a joint press conference to voice opposition against the proposed tax implementation and share their proposed solutions.

The associations are still unclear on the tax collection mechanism, said MAH president Cheah Swee Hee, who stated that making hotels a tax “collection agent” will add to their costs of updating their operating and accounting systems.

He stressed that hotels already had to contend with high costs of materials and goods due to the implementation of the Goods and Services Tax last year while average occupancies for the last two years were around 35 to 40 per cent.
 

MyBHA president, PK Leong, added: “It is unfair for the hotel industry to collect this tax as tourists spend 25 per cent of the expenses on accommodation and the rest goes on shopping, transportation and meals among others.

“If hotels were to collect the tax it must then be placed in a special fund which should be used to promote hotels only,” he said, suggesting for one of the three hotel association presidents to be a signatory of this account by annual rotation.

As it now stands, revenue collected goes to the finance ministry and there is no assurance that it would be used for tourism purposes, pointed out Cheah.

MAHO executive director Shaharuddin M Saaid said that although the Ministry of Tourism and Culture had two briefing sessions with industry players last year, the private sector “had no say in the matter”.

Instead, the hotel associations proposed a one-time entry or exit tax of RM20 (US$4.53) per tourist be collected at airports and borders, which when based on targeted arrivals of 31 million tourists this year would net the government some RM620 million.

Shaharuddin suggested that tourists could also make payments at automated machines, as is practised in Japan.

-TTG Asia.

Yields versus volumes

Hoteliers hesitate to heed the government’s call to increase room rates in the country. 1 Why have hotels struggled to raise occupancies? Tourist arrivals may have been increasing year-on-year but national occupancy has been hovering in the 60s for years. Malaysian Association of Hotel Owners (MAHO) vice president Eddie Tang attributes this to supply outstripping demand, making it difficult for hotels to adjust rate levels upwards. The opening of new hotels in areas where occupancy is less than 70 per cent is further eroding volumes. MAHO has thus sent in a proposal to the government to restrict approval of new hotels in main cities where occupancies are below 70 per cent.  The mushrooming of one- and two-star hotels in tourist areas and boutique hotels with fewer than 100 rooms are also indirectly diluting the market as they compete for clients with budget three-star hotels as well as their four-star counterparts.  Malaysian Association of Hotels (MAH) vice president Ivo Nekvapil said: “Malaysia needs more international promotions to build demand. We need world-class attractions and international events to create interest in the destination and attract more tourists.”  The country could also do with a strong national convention bureau and private-government partnerships to secure more business events, he added. 2 Why is the government pushing hotels to raise rates? Since the beginning of the year, the government has been advocating hotels to raise rates and be on par with their regional counterparts. This would enable properties to amass funds to refurbish and maintain their facilities. “Improved rates mean (hotels) have more to invest on staff training, and this will elevate service standards to meet the demands of today’s sophisticated international travellers,” said Ivo. 3 Why are hotels reluctant to do so? Christine Toh, another MAH vice president and Dorsett Regency Hotel Kuala Lumpur general manager, said hotels were generally apprehensive about raising rates as they were afraid of losing marketshare to competing properties with lower tariffs in their vicinity. Ivo added that some hotels placed greater emphasis on high occupancies as they did not understand yield management. “It is better to have 40 per cent occupancy at RM320 (US$103) than 90 per cent occupancy at RM150,” he opined. Betty Lim, director of sales of Hard Rock Hotel Penang, cited pressure from travel agents, the hotel’s “bread and butter”, for lower rates. She added: “The five-star brands are dropping their rates, even during the high season. So we, as a four-star brand, are also forced to lower rates to remain competitive. But we stick to our rates during our high season, which are weekends and Malaysian school holidays.” 4 Will hotels benefit from the current national focus on high-yield tourists? Toh likened it to a domino effect where a quantum leap in five-star rates will allow lower-category hotels to also bump up tariffs. Shangri-La’s Tanjung Aru Resort & Spa Kota Kinabalu director of sales and marketing Suzaini Ghani said high-yield tourists tended to spend more time in the hotel, while average-income ones preferred to go sightseeing. “(Upscale tourists) also tend to purchase higher-category rooms and spend more in the hotel’s F&B outlets,” she added. Malaysia aims to bring national occupancy up to 80 per cent by 2020, with average five-star room rates at RM600 a night. 5 What kind of hikes will be implemented in 2011? Three- to five-star hotels are expected to increase rates by eight to 20 per cent next year. Sri Sutra Travel group general manager K T Foo said a 20 per cent hike was not as steep as it seemed since some hotels had dropped their rates so low in 2009 and only managed to bring these back to 2008 levels this year. Ping Anchorage Travel & Tours CEO, Alex Lee, believed the rate increase was reasonable but hotels had to ensure that services were up to par. -TTG Asia.