14 October 2023
FOR IMMEDIATE RELEASE
INDUSTRY RESPONSE TOWARDS THE RECENTLY TABLED 2024 FEDERAL GOVERNMENT BUDGET
Lumpur – MAH National President, Datin
Christina Toh, expresses her concern about the potential implications of the
2024 budget on the ongoing recovery efforts within the hotel industry.
The proposed increase in the Sales and
Services Tax (SST) from 6% to 8% is expected to escalate operational costs,
potentially triggering a domino effect of price hikes throughout the supply
While the exception made for food and
beverage services to remain at 6% is appreciated, further clarification is
needed, especially in the context of packaged F&B services offered by
hotels and resorts, including those catering to meetings and events.
Utility costs in
particular electricity costs, a major cost factor in 2023 has caused exorbitant
increase in energy costs to hotels (35 - 50%). TNB ICPT surcharge of RM
0.20sen/kWh since January 2023 was reduced to RM 0.17sen/kWh since July but not
much effect as it is still very high.
Hotels have been undertaking energy efficiency /savings initiative but
it is not enough. MAH request a repeated consideration for a lower or special
tariff than the current C2 for hotel sector.
Short Term Rental
Accommodation (STRA) must be regulated, registered and licenced to provide a
level playing field to all tourist accommodation premises. STRA not only not
contributing the much-needed revenue to the government but do not collect SST
and Ttx (Tourism Tax) plus pose a serious security risk. MAH with other
hospitality stakeholders have been actively engaging with all relevant
authorities but no further development on this issue.
On the other
hand, the Visit Malaysia Year 2026 initiative is a well-timed boost for our
hospitality industry, projecting a record 26.1 million foreign tourists. This
initiative is also expected to reinvigorate domestic tourism with a diverse
array of events and activities scheduled across all states in Malaysia.
warmly welcome the allocation of RM350 million for tourism in 2024,
representing a RM100 million increase from the previous year. We emphasize,
however, that these funds must be channeled into driving additional domestic
and international promotions and marketing initiatives, as well as preserving
and enhancing tourist attractions and providing grants to boost emerging
Muslim-friendly tourism activities.
matching grants for chartered flights aimed at facilitating greater
international accessibility to Malaysia are imperative, especially for
attracting business events markets.
We also extend a
warm welcome to the introduction of the Malaysian Visa Liberation Plan, which
encompasses Visa on Arrival, social visit passes, and multiple-entry visas.
These measures are poised to significantly increase tourism and business
travel, particularly from countries like China and India.
MAH strongly advocates for a more comprehensive budget that addresses the
sustainability of the hospitality industry, ensuring its continued growth and