Tourists to Contribute to Johor’s Growth with New RM3 Hotel Tax

Published on November 22, 2025

Starting January 1, 2026, one of the most frequented states across the globe, Johor, Malaysia, will implement a hotel tax of RM3. The overnight tax will be directed towards boosting the revenue for the state and improving the economic sustainability of the state. This is an initiative to improve Johor’s ability to accommodate the projected growth of tourism.

The hotel tax will be applied to all categories of accommodation including but not limited to, hotels, resorts and guest houses across the state. The tax is not region-specific and includes tourists on all territories. There may be exemptions that relate to the specific type of accommodation or the length of time the accommodation is utilized.

Objectives of the RM3 Hotel Tax

. The new RM3 Hotel Tax is an initiative to boost the tourism economy of Johor. The funds collected will be put towards improving the tourism infrastructure in the region, building new transportation facilities, and enhancing amenities that serve the tourists. Monetarily, it will aid in Johor’s international and domestic promotion as a tourist destination.

As the closest and most easily accessible destination, Johor has a high influx of visitors from nearby Singapore. The diverse culture and beautiful cities of Johor, along with its natural attractions, has balanced its tourism between leisure and business travel. The new tax is aimed at improving infrastructure to cater to the increased demand in travel.

Impact of Tax on Travellers

International visitors who will spend the night in Johor will also pay the RM3 tax, which will be added to the cost of their accommodation. Following the RM3 tax to be added to the cost of accommodation, all visitors to Johor will, in the aggregate, pay the greater accommodation cost, which is over the RM3 accommodation tax. The amount of the accommodation tax is consistent with other Malaysian destinations like Kuala Lumpur and Penang, which also assess a tourist accommodation tax to finance local infrastructure and tourism maintenance.

Hotels in Johor will inform travelers of the tax when making their reservations. The tax will also appear to be an extra fee when the travelers arrive at the hotel. Hotel tax transparency will be offered on the internet when making reservations to minimise hotel tax surprises at checkout. Although the tax will enhance the travel experience for visitors to Johor, it will increase the cost of travel.

Johor’s Growing Appeal for Tourists

Due to its unique blend of city life, nature, and culture, Johor has always been a favorite amongst tourists from all over the globe. Attractions such as Legoland Malaysia Resort, Desaru Coast, and Johor Bahru Old Chinese Temple capture the region’s history, while the beautiful hiking trails and beaches at Taman Negara Johor National Park embody the natural beauty this region has to offer. Johor is also well-known for its shopping, markets, and historical sites.

Each year, more and more people are travelling to Johor to experience this perfect mix of town and nature, making Johor a prime destination. Johor’s attractiveness is close proximity to Singapore, making it accessible to Singaporeans on weekend getaways or day trips.

Supporting sustainable tourism practices, the state plans to improve and expand its tourism infrastructure, ensuring a positive traveller experience. The new RM3 hotel tax will finance the creation of new attractions and improved public transit to promote local businesses, allowing Johor to invest in its tourism for the future.

The Economic Impact of the Tax on Local Communities

RM3 hotel tax will positively affect every community in Johor because the tax will also help improve facilities that are essential in providing quality services to tourists. The tax will encourage tourists to come back and stay longer which will result in boosting the economy of the community and economically benefiting the hospitality, retail and tourism services sectors’ businesses.

The tax will also help fund the upkeep of the cultural and natural sites where people spend time and which are also points of interest in Johor. The government can then spend the revenue again on more projects that help to make Johor more effective in attracting tourists.

Preparing for Future Growth in Tourism

Johor has plans for new hotels, resorts, and attractions to make the most of the predicted growth in the tourism sector. The RM3 hotel tax is part of the bigger strategy to develop and improve Johor’s tourism infrastructure which has been designed to accommodate growth in the domestic and international tourism.

In the coming years, Johor will likely continue to grow in the tourism sector, and this growth will be facilitated by the addition of international flights and better access to major attractions in the region. The implementation of the RM3 tax will ensure that the services provided and the tourism-related infrastructures will continue to be of better and of higher quality to moderate tourism impact in the Johor region.

Conclusion

The implementation of the RM3 hotel tax is a big step in the right direction in establishing Johor’s tourism base and will assure Johor’s position as a major player in the region’s flow of tourism. The RM3 tax will be a big contributor in providing local tourism related services for newly developed advanced tourism infrastructure in Johor, and will enable the preservation of cultural artifacts for the benefit of the tourists of the future. Johor, with its endless attractions and a strong tourism base, will soon be ranked with the major tourism players in Southeast Asia.