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.
