Hotels price hike may negatively impact tourism industry

It could also discourage tourists from choosing Malaysia as their vacation destination, says travel agency director.

Siti Noor Faezah Muda
Siti Noor Faezah Muda
14 Feb 2024 12:30pm
Photo for illustration purposes only. - 123RF
Photo for illustration purposes only. - 123RF
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SHAH ALAM - The expected hike in hotel prices due to the sales and service tax (SST) increase starting March could adversely affect the country's tourism sector.

AMK Holidays Sdn Bhd director Amirullah Kamarudin said this could also discourage tourists from choosing Malaysia as their vacation destination.

"People are dealing with rising costs for various goods and now, prices for accommodations for domestic vacations are also experiencing hikes.

"The government should reassess this situation. While urging the public to take vacations to support economic recovery, the surge in hotel prices poses a challenge to the tourism sector," he said.

It was reported that hotel prices were expected to increase between 10 to 30 per cent following the increase in the SST rate to eight per cent starting March 1.

On the other hand, Semporna Travel & Tour Sdn Bhd operator Mohd Najib Takap was of the view that the rise in hotel prices have minimal impact on the tourism sector as it was only experiencing a minimal increase.

"Hotel prices may experience an increase of between 10 to 30 per cent, but other services are not involved.

"Moreover, people who planned to travel have probably already made financial arrangements, including early preparations such as building up savings.

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"So, the increase is only for accommodation expenses and will not have a significant impact," he added.