Sabah hotels want tourism tax deferred for a year

KOTA KINABALU, June 15 — Hoteliers and accommodation providers in Sabah are asking Putrajaya to delay implementing a new tourism tax here for a year, claiming they cannot amend their rates in time for the July 1 rollout.

Sabah Hotel Association president Christopher Chan said that many industry players were bound by room rates already quoted to booking agents and clients, and were liable to experience cancellations, loss of business or even lawsuits for changes in prices.

“Most hoteliers have to quoted their room rates which are valid for a year and cannot be changed until 31st March 2018. Should our hotels be sued by our clients for loss of business, who is going to indemnify us?” said Chan.

He was also speaking on behalf of the Malaysian Association of Hotels Sabah Chapter, and Sabah Backpackers Association, which recently met with Sabah Tourism, Culture and Environment Ministry Permanent Secretary Datu Rusmadi Sulai to raise their concerns.

Chan also said major hotels needed time to engage IT specialists to reprogramme their accounting system to incorporate the tourism tax, which could cost thousands of ringgit, in addition to training their staff.

“On top of that there’s already the six per cent GST we still have to pay,” he said.

Chan claimed that some hotels were already experiencing cancellations from clients notified about the impending additional tax.

He also cautioned authorities that there will be a rise in unlicensed room and board providers, as people will go out of their way to avoid the additional tax.

“We hope that these issues and some minor ones can be resolved with the ministry through meetings and dialogue with the Customs Department before being implemented,” he said.

The tax starting July 1 will charge patrons between RM2.50 and RM20 for overnight stays at registered hotels and inns.

Sabah and Sarawak had both voiced disagreement with the tax, leading to an argument between Tourism and Culture Minister Datuk Seri Nazri Aziz and Sarawak counterpart Datuk Abdul Karim Rahman Hamzah.

Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi today said the issue was resolved, with Sabah Chief Minister Datuk Seri Musa Aman and Sarawak Chief Minister Datuk Abang Johari Abang  Openg agreeing that the tax was necessary.