Datuk Tan Kok Liang
MATTA president, Datuk Tan Kok Liang said the TTx initially included Malaysians but was later amended after a public uproar, “as it was decided without proper engagement with tourism industry players”.
The Malaysian Association of Tour and Travel Agents (MATTA) has stepped up its opposition to the Tourism Tax (TTx), which came into effect on September 1, 2017, charging a flat rate of RM10 per room night on foreigners staying in hotels or registered private accommodation.
MATTA president, Datuk Tan Kok Liang said the TTx initially included Malaysians but was later amended after a public uproar, “as it was decided without proper engagement with tourism industry players”.
Tan said MATTA had objected and expressed concerns to the Ministry of Tourism and Culture on the TTx “from day one, as it would have impacted on the tourism industry, particularly price sensitive tourists, as well as long-haul travellers who spend longer durations in the country”.
Tan added, “Malaysia’s tourism sector is trailing behind neighbouring countries Thailand, Singapore and the Philippines.
“The tourist arrivals for Asean countries have recorded positive growth in 2017, with 7.8% increases for Thailand, 6.2% for Singapore and 11% for the Philippines, whereas visitor arrivals to Malaysia dropped by 3% with 29.95 million tourists in 2017 compared to 26.76 million in 2016.
“Putting up more barriers may deter tourists from choosing Malaysia as a preferred holiday destination,” Tan said. “Without the TTx, foreigners would be delighted to come to our country, stay longer and spend more freely.
“We urge the Ministry of Finance to review the current TTx rate and abolish it, as both hotel and tour operators have been affected by its introduction.”
Tan said MATTA was ready to contribute to the discussions with the relevant ministries in reviewing and abolishing the TTx.