SST: Local tourism industry at risk of slowly becoming paralysed

Photo for illustration purpose only. – Illustrated by Sinar Daily

THE increase in Sales and Services Tax (SST) rate to eight per cent effective on March 1 might bring a negative impact on the country’s tourism industry following hotel accommodation rates which are expected to increase between 10 to 30 per cent.

The prediction of a price increase was voiced out by Malaysian Hotel Association (MAH) President Datin Christina Toh, despite being confident that it would not affect hotel bookings in Malaysia.

However, the development regarding the price increase in hotel accommodation is certainly not a good thing to hear, moreover at this time, the country’s tourism industry is already quite affected by neighbouring countries, especially Thailand, when our people prefer to go vacation in the white elephant country.

The cheaper price of accommodation is the reason why people prefer to go vacation in Thailand than in the country in addition to several other factors that are considered more economical.

Thus, this development is feared to thwart one of the efforts to ‘persuade’ Malaysians to enjoy more worthwhile tourism in their own country.

Hotel operators also seem to have little choice but to raise prices in line with the rising costs they have to bear.

Foreign tourists especially from developed countries may not be as impressed due to their higher currency.

But is their presence enough to guarantee the development of Malaysia’s tourism industry? Meanwhile, Malaysians also need to participate to jointly support the local tourism industry.

Do we have to see the country’s tourism industry slowly paralysed? In this regard, the government needs to do something that really has an impact and helps the local tourism industry which is the people’s own rice cooker.