KUALA LUMPUR: A proposal to impose a fee on all hotels in the country has been met with objections from the Malaysian Tourist Guides’ Council.

It’s president Jimmy Leong said should the Government go ahead and implement the tax, this would be a huge “bombshell” on the tourism sector, especially hoteliers.

“It is not the right time, the right decision or the right move, taking into consideration the competition among Asean countries. We have to be price competitive,” said Leong.

“Asean countries are already turning to package deals that are low-cost in nature –with value-for-money packages – like the trend of low-cost carriers coming in,” he said in an interview here yesterday.

On Friday, Tourism and Cultural Minister Datuk Seri Nazri Abdul Aziz had said that it was in the process of engaging with industry players this week over a proposal to impose a hotel fee as a way of raising revenue and further promoting the country.

Although the minister did not mention the quantum of the proposed fee, there are claims that this could be up to RM30 per room for each night’s stay at a five-star hotel, RM20 (four-star), RM10 (three-star) and RM5 (two-star, one-star and Orchid categories).

The fee was said to be imposed from Sept 16.

Leong said while a Goods and Service Tax (GST) on the tourism sector was reasonable, imposing a RM30 per night for each room at a five-star hotel was a “bit above the board”.

“They (the Government) are not considering how much the hoteliers are already competing among themselves to make sure that they are sustainable,” he said.

“There are a lot of factors involved in costing in the tourism industry, and by adding to the costs, the industry will be affected.”