The Langkawi Tourism Association has hit out at Malaysia’s upcoming tourism tax which will be levied on hotels beginning next month.
LTA chief executive officer Zainudin Kadir said Langkawi could experience a double digit dip in tourists as it comes just a year after a tourism promotion fee was imposed in Langkawi.
"I strongly object to the implementation of the tourism tax now as it would not be suitable to promote the industry under the current economic situation," he said.
It comes into force from July 1 with fees payable by hotels depending on their star rating.
Payments per occupied room per night range from RM2.50 to RM20.
Zainudin said unlike the earlier tourism promotion fee, there is no transparency on how the new tax revenues will be used.
"The tourism promotion fee collections have been used for cleanliness maintenance on the resort island but so far there is no explanation on the purpose of the tourism tax," he said.
He said there is no justification for imposing a new tax on the industry just because other nations do it.
"We don’t have to go far but to look at Thailand or Vietnam where their tourism industries are faring well and, hopefully, we would not be losing tourists to them because of the so many taxes that need to be paid."
The LTA will fire off a strongly worded letter to Minister Datuk Seri Najib Tun Razak and tourism minister Datuk Seri Mohamed Nazri Abdul Aziz opposing the tax, Zainudin said.
