GEORGE TOWN: Chief Minister Chow Kon Yeow has denied recent claims in local media reports that the state government plans to increase hotel accommodation fees by up to 50% this year.
He clarified that no such proposals or discussions have been initiated by his administration.
"The revenue generated from hotel accommodation fees in the state is insufficient to fund promotional activities and maintain tourism-related infrastructure.
"However, the state government has not opted to increase hotel fees, as alleged, and no discussions on the matter have ever taken place,” he told reporters after inaugurating Pos Shop Datuk Keramat here on Friday (Jan 17).
Recently, local media reported that Penang was considering raising hotel accommodation fees, a form of local tax levied by the Penang Island City Council, by at least 50%.
Commenting further, Chow noted that the repair of several tourist sites and the construction of new infrastructure for visitors are largely funded by state government revenue, rather than hotel fees.
"For instance, the Fort Cornwallis restoration project requires an allocation of between RM15mil and RM20mil, while the Gurney Bay development project costs RM220mil. All these expenses are borne by the state government, as the revenue from hotel fees is relatively small," he explained.
During the Penang State Legislative Assembly sitting in May 2024, it was revealed that RM72mil had been collected from hotel fees since their introduction in 2014, up to April 2024. - Bernama
