The Malaysia Budget and Business Hotel Association Penang chapter has urged the state government to be transparent about the allocation and use of funds from a proposed 50% increase in hotel fees. The chairman, Andy Lau, expressed concerns about the lack of information regarding how much has been collected, how the funds have been utilized, and whether they have benefited tourism promotion as intended. He also pointed out the operational burdens hotels face as fee collection agents and the need for a collaborative approach involving stakeholders to ensure effective utilization of the funds.
Lau said the market is in recovery and customer behaviour has become unpredictable, so more time is needed to assess the appropriate timing for any increase in local government fees.The Malaysia Budget and Business Hotel Association Penang chapter has called on the state government to show transparency in the allocation and utilisation of funds from the proposed 50% increase in hotel fees .
Lau said the fees collected – RM3 per room per night for four-star hotels and above, and RM2 for three-star hotels and below – were deposited into a dedicated account managed by a committee comprising industry stakeholders and local authorities. He said as collection agents, hotels bear the operational burdens of managing the fees, including upgrading property management systems, training staff to handle guest inquiries about the fees and allocating resources to process payments to local councils.
“Additionally, the fees were not supposed to cover infrastructure or operational costs, which should be the state government’s responsibility. The lack of transparency inLau stressed the need for fee enforcement across the accommodation sector. “The same fee structure should be enforced to STR operators to ensure consistency and equity across accommodation providers.”
HOTEL FEES TOURISM TRANSPARENCY PENANG MALAYSIA
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