Penang proposes hotel levy

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http://www.relax.com.sg/article/news/penang-proposes-hotel-levy

The Penang state government is planning an RM2 (S$0.78) levy for each night's stay in a one-to three-star lodging as well as an RM5 for each night's stay in four-star and above hotels.

Chief Minister Lim Guan Eng said the state government was planning to organise Visit Penang Year from 2015 to 2017.

"All the money collected will go towards funding the state's tourism development...  to create new products, events and experience that will last a lifetime," said Lim when tabling the 2014 state budget at the state assembly Friday.

The state, added Lim, could not continue funding tourism activities due to insufficient funds.

The levy is expected to be imposed from March.

Several hotel industry players expressed surprise over the move.

"Our issue is that we have never been shown a clear and effective tourism promotion action plan from the state," said one senior manager, who declined to be named.

A resort manager, who also declined to be named, was disappointed that Lim had not called hoteliers to discuss the proposed levy.

"Now that he has announced it in the state assembly, are we left with no choice but to obey?" she said.