KUALA LUMPUR, Oct 21 — The Malaysian Association of Hotels (MAH) today welcomed the RM550 million government for the Asean Tourism Forum 2025 and Visit Malaysia Year 2026 announced in last Friday’s Budget 2025 presentation in Parliament.

At the same time, it emphasised the need for careful allocation of funds to benefit the hospitality and tourism sectors effectively.

“The additional RM110 million for ecotourism is a welcome step, as it is crucial for maintaining and upgrading the country’s natural attractions,” the MAH said in a statement this evening.

The association also expressed concerns about the overall Budget allocations, noting that while the 29 per cent year-on-year increase is commendable, it is insufficient to address the industry’s pressing challenges.

The MAH also highlighted the absence of targeted tax incentives, which they believe would help alleviate the operational costs that hoteliers face.

Specifically, the lack of tax exemptions for hotels rated four and five stars under the “Pioneer Status and Investment Tax Allowances” is seen as a missed opportunity for further investment.

Additionally, the MAH said its requests for support in “green and sustainable” practices have not been addressed, despite the government’s ambitious goals for sustainable tourism by 2030.

It also expected the increase in minimum wage to RM1,700 from RM1,500, effective February 1, 2025, to add further strain on operational costs, especially concerning overtime rates.

MAH highlighted the importance of transparency in the collection and use of the Tourism Tax (TTx), which has been the responsibility of hotels since its implementation in 2017.
 

https://www.malaymail.com/news/malaysia/2024/10/21/hoteliers-says-budget-2025-funds-for-industry-welcome-but-many-missed-opportunities-at-the-same-time/154389