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<h2>Malaysians and tourists can expect to pay more for hotel stays once the new Sales and Service Tax (SST) rate comes into effect in March</h2>
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                    <a href="https://images.says.com/uploads/story_source/source_image/1218173/fa09.jpg" target="" class="imgwrap colorbox-image cboxElement" title="Malaysian Association of Hotels president Datin Christina Toh." rel="segment-810 noopener"><br />
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<p class="img-caption">Malaysian Association of Hotels president Datin Christina Toh.</p>
<p>                <small class="img-credit">Image via <a target="_blank" href="https://hotels.org.my/article/39096-motacs-workshop-on-hotel-apartments-criterion" rel="noopener">Malaysian Association of Hotels</a></small>
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<p><p>According to <a target="_blank" rel="nofollow noopener" href="https://www.malaymail.com/news/malaysia/2024/02/13/hotels-say-prices-expected-to-increase-by-up-to-30pc-following-sst-hike-to-8pc-this-year/117740">Malay Mail</a>, Malaysian Association of Hotels president Datin Christina Toh said <b>hotel prices are expected to increase by 10% to 30%, following the SST rate rise <a target="_blank" rel="nofollow noopener" href="https://says.com/my/news/anwar-govt-to-increase-service-tax-from-6-to-8">from 6% to 8%</a> on 1 March.</b></p>
<p>Nevertheless, Toh remains optimistic about tourism, citing ongoing promotions and government support, such as visa exemptions for tourists from specific countries.</p>
<p>She added that, despite the price hike, Malaysia still has one of the lowest hotel room rates among the ASEAN countries.</p>
<p>&#8220;The increase has no effect. That is one of the reasons why we want to attract more foreign tourists to our country because our prices are still reasonable,&#8221; she said.</p>
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<h2>Malaysia Budget and Business Hotel Association president Dr Sri Ganesh Michiel expects hotel prices to soar up to 50%</h2>
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<p><p>He stressed <b>the domino effect of the new SST rate on the entire hotel supply chain</b>, impacting costs of cleaning services, utilities, and transportation.</p>
<p>To ensure business sustainability, hotel owners may be forced to raise prices, he said.</p>
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<p>                <small class="img-credit">Image via <a target="_blank" href="https://www.freepik.com/free-photo/modern-studio-apartment-design-with-bedroom-living-space_2448708.htm" rel="noopener">katemangostar/Freepik</a></small>
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<h2>Meanwhile, a local hotel owner said they definitely plan to raise room prices due to increased charges imposed by suppliers</h2>
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<p><p>Ridel Boutique Hotel owner Aiman Wasa told <a target="_blank" rel="nofollow noopener" href="https://www.sinardaily.my/article/215475/hotel-prices-to-increase-following-sales-tax-hike-industry-reactions-differ" title="Link: https://www.sinardaily.my/article/215475/hotel-prices-to-increase-following-sales-tax-hike-industry-reactions-differ">Sinar Daily</a>&nbsp;that&nbsp;<b>suppliers have started to send notices of raised prices by up to 20% starting 1 March.</b></p>
<p>&#8220;Room prices must go up. If suppliers raise prices, we also must do the same; this does not include an increase in water tariff rates.</p>
<p>&#8220;Competition in this business is very high, but we cannot raise prices too high.</p>
<p>&#8220;That is one of the reasons why many hotel businesses are closed.</p>
<p>&#8220;When prices go up, there are no customers, and when prices are not raised, costs go up,&#8221; he said.</p>
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<h2>Malaysians can also expect to pay more for online services starting March:</h2>
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<h2>Prime Minister Datuk Seri Anwar Ibrahim announced the SST increase during the tabling of Budget 2024 last year:</h2>
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Hotel Prices Expected To Increase Up To 30% Due To SST Hike This Year

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<h2>Thailand&#8217;s cabinet has approved a tax cut on alcoholic beverages and <a href="https://says.com/my/fun/thai-club-has-wheelchair-with-blinking-sign-to-roll-drunk-people-out" target="_blank" rel="noopener">entertainment venues</a> to boost tourism, a government spokesperson said on Tuesday, 2 January</h2>
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<p><p>Taxes on wine will be reduced from 10% to 5% and on spirits from 10% to zero, Chai Wacharonke told reporters, adding that excise tax on entertainment venues will be halved from 10% to 5%.</p>
<p>The tax measures will expire at the end of this year, he said.</p>
<p>The announcement comes after authorities in November extended opening hours for entertainment venues by two hours to 4am for nighttime revellers and tourists.</p>
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<h2>Tax revenue losses would be offset by additional tourist receipts, Finance Ministry Permanent Secretary Lavaron Sangsnit said in a separate briefing</h2>
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<p><p>Tourism is a key driver of Southeast Asia&#8217;s second-largest economy. Last year, <a href="https://says.com/my/lifestyle/malaysians-thailand-top-tourists-2023">Thailand reached</a> its target of 28 million tourists, generating THB1.2 trillion (RM161 billion), government data showed.</p>
<p>In 2024, it is targeting more than 34 million tourist arrivals, Lavaron said.</p>
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It Will Soon Be Cheaper To Party In Thailand After Govt Cuts Taxes On Booze & Night Clubs