Malaysia budget & business hotel association (MyBHA) deputy president Ganesh Michiel said in a statement that the state and federal governments should provide exemptions on tax assessment for the year 2020 and 2021 for all hotels.

The association also requested for a special tax incentive until 2022 for all affected industry players.

Ganesh said the annual sales and service tax (SST) threshold for the hotel industry should be increased from RM500,000 to RM1.5 million. The government should also allow exemptions on the digital services tax.

“The digital services tax has placed a burden on hotel operators, as online travel agents (OTAs) can transfer the tax to hotel operators. It also has an impact on the selling price of the room and the income of the hotel operators,” he said.

He urged the government to arrange for a 50% discount on electricity tariffs, telecommunication services and water tariffs for hoteliers until December 2021.

In addition, he wanted the government to ensure that the water, electricity and telecommunications services to hotels would not be cut.

“The government must direct that a reasonable instalment payment scheme be given to all hotel and tourism operators.”

The tourism industry has been one of the hardest hit by the on-off travel restrictions, introduced since March 2020.

One of the measures introduced by the government to help the bleeding industry was a special tourism financing scheme (PTF).

Ganesh however said they had received negative feedback about the scheme from members.

“We appeal to the government and Bank Negara Malaysia to immediately review the effectiveness of PTF that was introduced in 2020.

“We request that a special division under the tourism, arts and culture ministry or the finance ministry be established to process all loan applications by hotel and tourism industry players and that it does not go through any financial institution.”