Some 5,000 hotels in Malaysia have started charging their foreign guests the federal tourism tax since Sept. 1, 2017.

The controversial scheme was reviewed and delayed by a month from its original implementation date of Aug. 1.

Tax met with uproar initially

According to The Star, the tourism tax was meant to cover Malaysians staying at hotels as well.

But it was changed to target only foreign tourists at a flat charge of RM10 (S$3.20) a night following public uproar.

Local tourists and permanent residents are now exempted from paying the tax.

Separate room and tourism tax rates

As not all hotels are ready, Customs and Excise Department director-general Datuk Seri Subromaniam Tholasy told The Star that the department will be taking a friendly approach to encourage hotels and lodging operators to register for the tourism tax.

Out of the estimated 10,000 establishments nationwide, only 5,000 accommodation providers have registered for the administration of the tourism tax.

All are expected to register by the end of September.

Bernama reported that hoteliers must display the newly introduced Tourism Tax rate separately from the room rates with the implementation of the tax.

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Promote tourism and cultural activities

The Malaysia government expects to collect around RM200 million (S$64 million) annually from tourism tax.

The biggest contributor to this tax will be Penang, Selangor, Kuala Lumpur and Pahang, as they have the most hotel rooms or lettable rooms for foreigners.

Tourism and culture minister Datuk Seri Nazri Aziz said that the revenue will be used to promote tourism and cultural activities nationwide, and there are also plans to bring more local cultural groups abroad to showcase Malaysia's diverse and rich cultural heritage.

Top photo via Wikemedia