Penang CM says not hiking tourism fees ‘for now’

Penang CM says not hiking tourism fees ‘for now’



A file photograph shows Penang Chief Minister Chow Kon Yeow attending the Maulidur Rasul Celebration at the Padang Brown Food Complex on Sept 16, 2024. — Bernama pic

Friday, 17 Jan 2025 4:46 PM MYT


GEORGE TOWN, Jan 17 — The Penang government has no immediate plans to increase a tourism fee collected via hotels in the state, said Chief Minister Chow Kon Yeow today.

He said the fee, which was now a direct part of state revenue, will continue to be collected at the current rates.

“It is not in our plans to increase the hotel fees for now and it was not even discussed,” he told reporters today after attending the official opening of Pos Shop at Datuk Keramat here.

Chow was asked to respond to remarks from Malaysian Association of Hotels (MAH) Penang chapter chairman Datuk Tony Goh over a recent report by a news portal on plans to raise hotel fees.

Goh had also questioned the state government’s reasons for shifting the collected funds into the state’s consolidated revenue (from a special trust fund) and the dissolution of a committee that used to decide on the disbursement of the collected funds.

Today, Chow said the state government had to channel the collection of the hotel fees into the state consolidated funds after the auditor-general commented on it in 2022.

He said previously, there was a committee that comprised the state, local council, Penang Global Tourism representatives and tourism players, which decided on how the collected fees should be used to promote tourism in the state.

“We have decided not to continue with the committee where hoteliers are invited to decide what to use and how much to spend the fees because it’s now part of the state revenue,” he said.

The change meant that the fees collected would be allocated via the state budget, he explained.

“Funds are allocated to Penang Global Tourism, PCEB and the exco for tourism to decide on how best to use the allocations,” he added.

He said those agencies have used it for purposes such as marketing, promotions, and publicity abroad such as wrapped buses in Singapore and Hong Kong.

Chow also said that money spent on improving Penang overall would still benefit tourism in the state, even when not allocated directly.

He said the state also spent money subsidising flights into the state.

“The hoteliers are unhappy about not being invited to decide on how the fees are spent but it is now in the state coffers; aren’t they happy with the tourism sector today after all the efforts?” he asked.

Chow also pointed out major infrastructure projects, such as the RM220 million gurney bay and the RM20 million Fort Cornwallis restoration, which also help promote tourism and cost far more than what the fees contributed to the state’s coffers.

“The hotel levy does not give us that kind of money, it does not give us that much to carry out these activities,” he said.

“So, I hope they appreciate what we are doing.”

When asked if there are plans to charge the same fees on short-term rentals (STR), Chow said no as this category was unlicensed.

Hotel fees of RM3 per night per room were imposed on 4-star hotels while the fee is RM2 per night per room for 3-star hotels and below.

During the May 2024 state legislative assembly, it was revealed that a total RM72 million have been collected (up to April 2024) from hotel fees since it was imposed in 2014.