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Hotel Tax implementation in Malaysia still Raising Questions

Dear friends and business partners

In line with previous updates in regards to the implementation of a new hotel tax in Malaysia, Asian Trails Malaysia would like to inform you about the latest developments since the initial implementation took place 1st July. The Malaysian government has announced that this addition hotel tax will be used to enhance the tourism experiences throughout the country.

As of today, we regret not to have received any official declaration from the applicable authorities in regards to ongoing changes and proposed exclusions. Latest reports we’ve received state that implementation has been postponed now to 1st August onward and that customers booking hotel accommodation via Destination Management Companies may be exempted for paying tax on spot. In addition, accommodation rated 3 stars and below are said to be excluded too.

In addition, the regulations state that the aforementioned exemptions only apply for hotel reservations that have been made and paid for prior to the implementation of this new mechanism. The levied taxes will take effect for guests making reservations after the official announcement has been made.

It is with deep regret that we still are unable to outline this initiative from the respective government authorities and giving you a clear and definite answer in relation to this ongoing matter. Should any update from the Ministry of Tourism reach our office, we will inform you accordingly.

We apologize in advance for any inconvenience and thank you for your ongoing understanding and support.

Yours sincerely

Emir Cherif
Managing Director
Asian Trails Malaysia