Liaw (left) and Chan at the press conference on the proposed Tourism Tax Bill.
KOTA KINABALU: The tourism industry players in the state are not happy with the government proposal of Tourism Tax Bill, which turn hotels into tax collection agents.
President of Sabah Tourism Federation (STF), Datuk Seri Winston Liaw has expressed the federation members’ concerns on the issue, and hopes the government will to talk with the players before voicing out any proposal to ensure they can give better suggestions.
“The STF is concerned by the feedback from its members and the financial implications and operational issues that will be faced by all the tourism stakeholders of Sabah based on the Tourism Tax Bill.
“The hoteliers are stating that it will cost them at least RM68,000 annually each if they are going to set up a new unit just to collect the tourism tax on behalf of the government.
“From reliable statistics, there are about 533 hotels in Sabah excluding the home-stay and backpacker operators. This will translate into RM36,244,000 salary cost alone as additional expenses for the overall industry. This does not include the operating cost of printing and stationary to support this tax collection system that will be tasked by the hoteliers,” he said in a press conference yesterday.
Liaw suggested the other way to implement the tax is by putting it as an additional charge on air or sea tickets, because tax collection centre cannot be done at the airport or jetty terminal to avoid congestion at the arrival hall.
Meanwhile, for those who are coming to the country by land, he said it can be done at the border by setting up a special counter.
“If the government still wants to proceed with this system, it can be a financial burden to the hoteliers and the possibility of inflation is there.
“What of the smaller hotels’ complaints that they cannot afford to set up such a collection department based on the operation cost? With 4,072 hotels registered in Malaysia as of 2014, this does not project that this is the most efficient system for both parties.
“The Customs Department might need more staff to monitor that such taxes are paid on time throughout the country,” he said.
Also present at the press conference yesterday was the Secretary General of the federation, Christoper Chan who explained further on the operational problems.
“Currently all guests who check into a hotel need only confirm that their mode of payment is accepted by the hotel either through internet bookings, booking sites, credit cards or cash payment and they will be given the room key to access the room.
“We have no right to demand them to pay anything in excess of that. In this case, what right has the hotel to demand such tax and stop them from entering their rooms if they don’t agree to pay such taxes, daily or the whole duration of their stay?
“The hotel standard practice is to quote tours and travel agents a contract rate that will be valid from April 1st until March 31st the following year. We cannot demand for anything more, nor the right to collect any extras from our guests. Is the government granting the hotel staff the authority to have enforcement powers?” he asked.
Chan also questioned what will happen if the tourists go back to their originating country and sue their tour operators? Are the hotels going to be liable for any such eventualities?
“Under such circumstances, will such overseas tour operators continue to send their guests to us? We may even be blacklisted and suffer more consequential losses as a result of any cancellation of future businesses.
“The question is, are we really welcoming tourists to visit Malaysia with such amove?” he asked.
Liaw and Chan stressed it is crucial that the Ministry of Tourism Malaysia (MOTAC) seek all the tourism stakeholders for consultation on this matter on the impact as to the pros and cons of such proposal without any further delays.