Penang hotel levy to continue even after federal tourism tax takes effect

Chief Minister Lim Guan Eng
PHOTO: The Star/Asia News Network

GEORGE TOWN - Penang will continue to collect its RM3 (S$1) hotel levy on a "per room per night" basis even after the Federal Government's tourism tax comes into force on July 1, said Chief Minister Lim Guan Eng.

He said the collection would be used exclusively to promote tourism products in the state.

He said projects implemented from the amount collected were agreed upon by a council which includes representatives from the hotel and tourism industry.

"The Malaysian Association of Hotels (MAH), Penang Chapter, also agreed that the RM3 is a small amount, but useful," Lim told a press conference in Komtar on Wednesday.

Tourism and Culture Minister Datuk Seri Nazri Aziz had said that states which have implemented their own tourism charges would be asked to stop the collections when the Tourism Tax comes into effect.

This, he said, is to avoid double charges on tourists that would be counter-productive.

However, Lim said: "I'm surprised by the statement because there has been no consultation between the ministry and the state on the issue."

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