The president of the Malaysian Association of Hotels (MAH), Christina Toh, has indicated that hoteliers in the country may raise the prices of rooms by 30 percent, owing to an increase in the Sales and Services Tax (SST) next year, Channel News Asia reported.
The SST is expected to increase from six percent to eight percent next year, though it will not include food and beverages or telecommunications.
“Despite the budget announcement stating the SST wouldn’t apply to certain categories, operating costs are expected to increase due to the integrated supply chains,” Ms. Toh mentioned
“Regardless of how hotels respond, the effect will be felt throughout the industry and is expected to influence room rates.”
The Singapore dollar breached the 3.5 mark against the Malaysian ringgit for the first time on October 23.
According to the report, travellers are mulling alternative accommodations or arrangements, but with experts believing that the spike in prices is unlikely to have a major impact on international tourism.
