MELAKA: Hoteliers here describe Budget 2025 as a disappointment.
Malaysian Association of Hotels (MAH) Melaka chapter chairman Khairulnizam Kasim said nothing was tabled to address their woes, especially to alleviate the rising cost of operation.
"I am sharing the sentiments given to me by hoteliers from other states as we don't see any incentives or tax exemptions to help us wade through our hardships, especially the financial impact stemming from unregulated short-term rentals," he said on Friday (Oct 18).
Khairulnizam said the hoteliers also felt that the RM550mil allocation for Visit Malaysia Year 2026 would not benefit them directly as they are supposed to self-fund their promotional activities.
"We hoped that some type of tax exemption would be announced for us to promote high-end tourism and attract high-spending tourists but nothing came up.
"There was also no mention of income tax exemption enjoyed by one to three-star hotels being extended to four and five-star hotels," he said.
Khairulnizam said one to three-star hotels are granted "Pioneer Status and Investment Tax Allowance incentives" and can enjoy a five-year 70% income tax exemption but this is not applicable to four and five-star hotels.
He said many hoteliers felt that their wish list for Budget 2025 was ignored despite having constantly raised their concerns in meetings with the relevant ministries over the past couple of years.
Khairulnizam said no perks were announced for the industry players to encourage green practices, digital innovation and provide incentives for the development of human resources within the industry.
"This is a sad development as our members have lobbied for customised incentives and tax reliefs for tourism industry players for a very long time," he said.
Khairulnizam added that the increase in the minimum wage to RM1,700 had also placed a burden on hotels' finances and this doesn't include overtime payments during peak days.
MITC Hotel's general manager Sazali Sabri said he was also unhappy when no goodies were announced for hotels to help generate higher revenues or tax reliefs for those spending money to enhance guest experiences.
"The industry has not fully recovered from the impact of the Covid-19 pandemic and we need various tax exemptions, especially on service tax for digital services," he said.
