Malaysia

Penang considering a 50 per cent hike in hotel service fees

Visitors staying in four-star hotels and above now pay RM3 per night for the tax, while those in three-star and below are charged RM2.

Updated 1 year ago · Published on 16 Jan 2025 5:12PM

Penang considering a 50 per cent hike in hotel service fees
Penang is the only state which has experienced an exponential growth in the number of hospitality properties - January 16, 2025

by Ian McIntyre

PENANG is looking to raise its hotel service fees - a form of local tax levied by the city council on hotel stays, by at least 50 per cent.

Currently, visitors staying in four-star hotels and above pay RM3 per night for the tax, while those in three-star and below are charged RM2.

The proposed hike comes as the state seeks to enhance its tourism offerings, fund related infrastructure, and help drive revenue for the state.

“We’ve been considering this increase for some time now. While I can’t provide an exact figure yet, a 50 per cent rise is likely,” said Penang Island City Council Lord Mayor Datuk Anthony Rajendran.

Over RM72 million has been reportedly collected from the Penang and Seberang Prai city councils since the hotel fee was introduced in 2014.

In 2014, RM3.7 million was collected, rising to RM8.6 million in 2015. 

This increased further to RM9.4 million in 2016 and RM9.8 million in 2017.

In 2024 up to September, the state collected RM8.6 million.

Penang is also the only state which has experienced an exponential growth in the number of hospitality properties, apart from budget hotels and private Airbnb stays. - January 16, 2025.

Related News

Malaysia / 5d

PH-BN cooperation in Penang remains smooth, says Exco

Places / 1w

Penang hoteliers lose patience over growing number of short-term rentals, homestays

Diary / 1w

A leader's role is not just about issuing statements and making headlines – Penang CM

Health / 1w

Tourism players in Penang call for urgent action to overcome haze situation

Malaysia / 1w

No more political value for UMNO to be part of Penang administration, says Guan Eng

Education / 1w

Penang: Schools may be ordered to close if air quality worsens

Spotlight

Malaysia

Zahid: BN’s Unity Government pact ends with parliament’s dissolution

Malaysia

IGP: Negeri Sembilan remains calm amid disputed ruler proclamation

By Ian McIntyre

Malaysia

Families seek answers as 55 Malaysians remain missing in Nepal floods

Malaysia

Four foreign men held in raid on KL ‘same-sex’ entertainment centre

Malaysia

PH Melaka keeps eight seats for Amanah as state poll talks near finalisation

World

Bangkok floodwaters recede but heavy rain threat remains

Malaysia

Malaysia Airlines team did not know MH370 had turned back in crucial first hours

Malaysia

Anwar: Respect for King’s decision does not bar legal advice on Najib

World

ICC panel found no misconduct by Karim Khan, report says

You may be interested

Malaysia

Malaysia warns against selective adherence to International Law

Malaysia

Anwar cautions against any move to remove Negeri Sembilan ruler

Malaysia

Cross-party calls for immediate probe into suspected bullying in student’s death

Malaysia

The rising tide of autism in Malaysia

Malaysia

Four killed in chain-reaction crash in Sepanggar

Malaysia

Masidi urges calm over reports of US military base near Sabah

Malaysia

Dozens of trees fall in Damansara; several vehicles damaged

Malaysia

Najib fund still RM40.75m short of RM50M fine