PETALING JAYA, June 10 — The tourism tax, which will be enforced on July 1, will raise much-needed funds to rejuvenate the industry, said the Malaysian Tourism Promotion Board.

Its chairman Datuk Siew Ka Wei said the tax would ensure the industry’s sustainable growth and provide financial support for aggressive marketing campaigns.

"This tax will ensure sustainability and boost the development of the tourism industry in Malaysia,” he said in an interview with Malay Mail Online’s M Chinese Network.

"Revenue raised will be used to develop various sectors of the industry especially infrastructure improvements, enhanced facilities and activities.”

Siew said the tax would require hoteliers and other accommodation providers to register with authorities to ensure their compliance with regulations governing their operations.

"This will plant confidence in travellers, who are always looking for quality premises which are secure and recognised by the government.”

He said the tax, being a new policy, could face problems but pointed out the need for the country to diversify its income base in light of a downturn in the oil and gas sector.

"Taxes such as this are necessary to ensure dependable income for the country. Tourism tax will be used to promote tourism, to turn the country into a tourist hotspot.”

Responding to concerns raised by industry players over the impact of the tax, Siew said there would be obstacles and some opposition initially.

"Further engagement will be done to improve the understanding of the reasons behind its introduction.

"But in the long run, the tax will prove to be a step in the right direction and will strengthen the industry, ensuring its place as one of the country’s top sectors.”

Yesterday, Tourism and Culture Minister Datuk Seri Mohamed Nazri Abdul Aziz reiterated the tax would be implemented as scheduled on July 1.

Nazri also rejected reports claiming the implementation of the tax would be postponed as the gazette of the tax was automatic.

"If we want to say it has not been gazetted, that’s right, but it cannot prevent the will of our MPs who have unanimously given their approval to implement this tax, and it will be implemented.”

The Padang Rengas MP had tabled the Bill during the last session of Parliament.

The Tourism Tax Bill 2017 will be applied to the hotel industry with rates rising from RM2.50 and RM20 depending on the rating of the accommodations.

"Homestay” and "kampung stay” establishments registered with the industry will be exempted along with those operated by religious institutions or those with less than 10 rooms.

Tourism Promotion Board director-general Datuk Seri Mirza Mohd Taiyab had said earlier the tax would have a "negligible” impact on the industry.

"Hotel rates here are not expensive compared to Singapore or Jakarta. I doubt people will travel less just because of the tax.”

Mirza rejected the industry’s criticism, calling it baseless and overblown, and that an estimated RM600 million a year in revenue would boost marketing programmes.Calculating charges under The Tourism Tax Bill 2017.