The Malaysian Association of Tour and Travel Agents (Matta) has called for the abolition of the Tourism Tax (TTx), which came into effect on 1st Sept, 2017.
The TTX charges a flat rate of RM10 per room night on foreigners staying in hotels or registered private accommodation.
Matta President Datuk Tan Kok Liang said tourists are welcome to have an enjoyable holiday experience and spend freely on accommodation, food and beverage, tourist attractions and tour excursion, but collecting tax from tourists would be counterproductive.
“Malaysia’s tourism sector is trailing behind neighbouring countries Thailand, Singapore and the Philippines. Putting up more barriers may deter tourists from choosing Malaysia as a preferred holiday destination,” said Tan.
Matta’s call for the removal of TTx comes at the heels of the government’s announcement for zero-rated Goods and Services Tax (GST) implementation on 1st June 2018.