The waiver on hotel fees has been in effect since June 2020 and the one on entertainment duties since last April.

The extension takes effect retroactively on Jan 1 and applies to all registered hotels in the state, performing arts spaces, theme parks, tourist attractions, cinemas and other industries levied with entertainment tax.

Previously, a hotel fee of RM3 per night was payable by establishments rated four stars and above, and RM2 per night for those rated three stars and below.

Official data shows that Penang collected RM19.7 million in such fees from 2014 to September 2016.

Entertainment duties are between 5% and 25%, depending on the type of business. According to the state finance department website, live shows featuring overseas artists that are not accredited are imposed with 5% duties.

A regular entertainment show would have to pay 12.5% in duties, while cinemas are charged 25%. Accredited artists performing live shows are exempt from duties.

Before the pandemic, Penang collected an average of RM16 million yearly from entertainment duties, according to state assembly records.

State tourism and creative economy committee chairman Yeoh Soon Hin said that ever since movement restrictions were lifted, Penang’s tourism economy has been gradually gaining traction.

“The revival of the tourism sector is among the areas of concern to the state government. We hope these waivers will somewhat help to stimulate the tourism market and drive demand,” he said.