PETALING JAYA: Hotel and tourism industry players are calling for tax relief, stronger regulation of short-term rentals and more support to manage rising costs under Budget 2027 as Malaysia steps up efforts to attract more foreign visitors.
Malaysian Association of Hotels (MAH) president Datin Christina Toh said the government should review the sales and service tax (SST) framework, electricity tariffs and fees imposed on hotels.
She said MAH also called for stricter rules on short-term rentals, saying licensed hotels face unfair competition from unregulated operators that do not bear the same compliance costs.
Toh said online booking platforms should ensure only properties meeting the rules are listed.
MAH also wants a review of fees charged by the Fire and Rescue Department, particularly recurring payments and charges linked to fire safety inspections, certification and compliance.
Toh said hotel operators were facing higher electricity costs and urged the government to review tariff categories and rates for the sector.
MAH also proposed more grants and financial aid for hotel digitalisation, including automation, cybersecurity and smart-hotel technology, funding for energy-efficient equipment, renewable energy, water conservation, waste management and sustainability certification.
Malaysia Budget and Business Hotel Association (MyBHA) president Dr Sri Ganesh Michiel said the government should raise the SST registration threshold for hotels from RM500,000 to RM1.5mil.
He said the current threshold did not reflect the higher cost of doing business, particularly for budget and business hotels.
“Gross revenue does not necessarily reflect a hotel’s actual profit,” he said, adding that operators were facing higher costs for electricity, water, maintenance, wages, employee contributions, licences, insurance, digital systems and linen.
He said budget and business hotels needed easier access to low-interest loans for renovation and upgrading works.
MyBHA also called for rebates for solar panels, energy-saving equipment and water-saving systems, as well as tax deductions for sustainability certification and staff training.
He said tourism incentives should only benefit registered and licensed accommodation providers that comply with regulations.
“Budget 2027 should not only focus on bringing in more tourists. It must also ensure local hotel operators, workers and communities receive the economic benefits,” he said.
Malaysia Cruise Industry Association deputy president Datuk Seri Koh Yock Heng said Malaysia should offer more incentives to attract international cruise operators to use the country as a home port.
He said this would allow foreign tourists to fly to Malaysia, spend time here before their cruise and depart from local ports, benefiting airlines, hotels, restaurants, transport providers, retailers and tourism operators.
He said Singapore had attracted major cruise lines, including Disney Cruise Line and Royal Caribbean, to use the republic as a home port.
“Malaysia should offer a similarly attractive package through lower port charges, marketing support and closer cooperation with cruise operators.
“We also need more direct international flights, stronger digital marketing and better tourism facilities to draw visitors,” he said.
Koh said the cruise industry covered several segments, including ocean cruises, river cruises and adventure or expedition cruises, each catering to different types of travellers and destinations.
On Wednesday, Tourism Malaysia director-general Mohd Amirul Rizal Abdul Rahim said they were seeking a bigger allocation under Budget 2027 as the country works towards its target of 47 million international tourist arrivals under the extended Visit Malaysia campaign.
Malaysia recorded 21.1 million international visitor arrivals from January to June this year, up 2.5% from 20.6 million in the same period last year.
