THE hotel industry is expected to face a more challenging situation following the implementation of new electricity tariffs and the expansion of the scope of the Sales and Services Tax (SST) which will take effect from July 1.
Chairman of the Negeri Sembilan Hotel Association (MAH), Haziz Hassan said that this situation will have a knock-on effect, thus increasing the cost of hotel operations.
“We have just implemented the minimum wage of RM1,700 and starting this July, the new electricity tariffs and new taxes will be implemented.
“All of this was initiated in a short period of time and I admit that this situation is quite worrying, especially when thinking about the new electricity tariffs,” he told Sinar Harian.
According to him, he did not rule out the possibility that hotel room service prices would be increased by between 10 and 15 percent after this.
However, he admitted that the increase would affect the occupancy rates, but it had to be done.
“Even now, our business is not what it used to be because people are trying to reduce spending, and government programmes at hotels are also decreasing.
“So, our business is indeed affected and when this new tax is introduced, it will be even more difficult for people to stay at hotels,” he said.
He added that most hotels were now reducing operating costs by limiting the hiring of new staff, freezing overtime and reducing electricity consumption. - June 29, 2025
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