Anticipated 10% to 30% Increase in Malaysian Hotel Rates Following 2% Rise in SST

The Paper Break Feb 14, 2024
Anticipated 10% to 30% Increase in Malaysian Hotel Rates Following 2% Rise in SST

In recent years, Malaysians have increasingly favored traveling abroad, particularly to destinations like Thailand, for their vacations. This trend may be attributed to the noticeably more affordable prices of food and accommodation in Thailand compared to those in Malaysia.

Given this context, the question arises: should Malaysian hotels consider raising their prices by 10% to 30%?

A tweet from the Ekonomi Rakyat Twitter page highlighted that hotels are indeed planning to implement such price hikes, starting next month, in response to a 2% increase in the sales and service tax (SST).

According to the tweet, "Hotel prices are expected to rise between 10% and 30%," as stated by Datin Christina Toh, the President of the Malaysian Association of Hotels (MAH). This adjustment follows the SST rate's elevation from 6% to 8%, effective March 1 (Friday).

However, the prospect of such substantial price hikes has sparked discontent among many Malaysians, particularly in light of existing grievances about the high costs of hotels and food within the country. The proposed 10% to 30% increase appears disproportionate to the 2% tax rise.

Some responses to the news reflect this dissatisfaction:

"A mere 2% tax increase prompts a 10% to 30% price hike? Might as well pitch tents and go camping."

?"Looks like vacationing in Malaysia is becoming unfeasible. Everyone will head to Hatyai instead. Let them feel the impact. Keep raising prices."

"A 2% tax hike results in a 10% to 30% increase in prices? Ridiculous."

"Costs are soaring. Perhaps it's time to explore local vacations or consider investing in a caravan."

These reactions underscore the growing concern over affordability and accessibility of travel within Malaysia amidst rising expenses.

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