New tourism tax in Malaysia from September 1

Published on : Thursday, August 10, 2017

Malaysian TourismWith effect from September 1, a tourism tax will be officially enforced in Malaysia, as confirmed by the Tourism and Culture Minister Nazri Aziz yesterday.

Foreign tourists will be charged a flat rate of RM10 (S$3.20) per room per night at all hotels. However, Malaysians and permanent residents will be exempted from the tax.

The tax will not be applicable to home- stays and kampung stays registered with the ministry, premises maintained by religious institutions for non-commercial purposes, premises operated by the federal and state governments for non-commercial purposes and premises with fewer than four rooms.

Datuk Seri Nazri said that Malaysia expects to collect about RM210 million in tourism tax revenue annually. These funds will be spent on promoting Malaysia overseas and on maintaining tourism facilities.

The tax was initially announced in June with a staggered rate of between RM2 and RM20 per night depending on the star rating of the hotel. It was also originally meant to be levied on all hotel guests, Malaysians and foreign tourists alike. However, that proposal was dropped after protests from the tourism industry and Malaysians.


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