GEORGE TOWN – The Malaysian Association of Theme Parks and Family Attractions (Matfa) is grateful for the support given to tourism by the unity government under next year’s budget, but believes more incentives are needed to woo tourists.
What the organisation crucially needs is an exemption on paying entertainment tax in all states, said its founder and president Tan Sri Richard Koh.
This way, he said, the savings earned can be reinvested into producing updated versions of theme parks and new ride attractions.
The man behind many amusement parks in the country with its flagship operations at Genting Highlands, Koh said that Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim together with Tourism Malaysia understand the predicament of theme park operators and investors.
“We suffered the most during the pandemic due to our high capital costs and now the challenge of higher living costs. But we hope the budget can be revised to temporarily remove the entertainment tax for theme park operators as it would be a great help.”
Koh said if the operating costs are lowered, operators and investors can think about bringing the latest thrill rides and create more jobs while also consolidating the country’s reputation as the “Orlando of the East” region.
He said that both Selangor and Penang have taken the lead to reduce entertainment tax to 5% since family entertainment is on the rise due to the return of domestic tourism in a big way after Covid-19.
Koh said the authorities need to revise the outdated entertainment tax and import duty on theme park equipment and rides.
This is especially with Indonesia, Vietnam, Thailand and Cambodia catching up fast in the recreation and theme parks industry, he noted.
Meanwhile, Rizal Kamal, the chief executive officer of comic acts organiser LOL Asia, said it is a sensible move by the unity government to reduce and eventually zero-rate entertainment tax.
“It allows artistes to grow their fan base and earn an income from live shows. It will then benefit tourism,” he said.
“We should use the savings to boost our image and build more concert infrastructure so we can continue to grow live performances which in turn will boost tourism.”
Tropical Charters Sdn Bhd owner Datuk Alexander Issac also welcomed the liberalisation of visa on arrivals for tourists from certain countries, as it can boost tourism.
Alexander, who is one of the few local cruise service providers, said that if the government relaxes its monetary policy on tourism, then it is logical for the private sector to use such incentives to boost tourism.
He added that the reduction in entertainment tax can also boost tourism, as the savings earned would allow operators to upgrade their amusement attractions. – The Vibes, October 14, 2023
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