No immediate rise in hotel fee, says Penang CM

No immediate rise in hotel fee, says Penang CM

The chief minister's stance comes after a hotelier group voiced stern objection against a proposed 50% increase.

Penang chief minister Chow Kon Yeow said the hotel fees collected are now channeled to the state’s consolidated fund at the recommendation of the auditor-general. (Bernama pic)
GEORGE TOWN:
The Penang state government has no immediate plans to raise a tax on hotel guests levied by the city council by at least 50%, according to chief minister Chow Kon Yeow.

“There is no immediate plan,” Chow told reporters after an event at Dato Keramat yesterday, following an objection by a hoteliers group.
.
Visitors who stay at four-star hotels and above currently pay a fee of RM3 per night, while those in three-star and below are charged RM2.

On Wednesday, Penang Island City Council mayor Rajendran Anthony said that the state would consider raising its hotel fees by at least 50%, in a bid to enhance its tourism offerings and fund related infrastructure.

He said the increase had been under consideration “for some time now” and that a 50% rise was likely.

Separately, Chow also addressed grouses by the Malaysian Association of Hotels over having no say over how the hotel fees were spent.

He said the fees collected, which were previously placed in a specific trust fund for hotel levies, are now channeled to the state’s consolidated fund following recommendations by the auditor-general.

“Aren’t they (hoteliers) happy about the tourism sector today, after all the effort we put in from the hotel levy and other state funds used to create parks like Gurney Bay, which cost RM220 million, and other tourism products?”

“We are also spending money to subsidise airlines to come here,” he said.

Penang MAH chairman Tony Goh was quoted by the Malay Mail as saying that the association was no longer updated on the total funds collected, disbursed, or their purpose over the past two years.

Over RM72 million has been collected from the hotel fees, imposed by the Penang island and Seberang Perai city councils since 2014.

Stay current - Follow FMT on WhatsApp, Google news and Telegram

Subscribe to our newsletter and get news delivered to your mailbox.