GEORGE TOWN: Effective next month, the Penang government will waive hotel fee charges for six months to further boost domestic tourism.
State Tourism, Arts, Culture and Heritage Committee chairman Yeoh Soon Hin said the decision was made after the federal government lifted the ban on interstate travel, with domestic tourism resuming nationwide.
This, he said, formed part of the state government's efforts to rebuild tourism and support the industry's rebound following efforts made to sustain various sectors and the most vulnerable groups of the industry.
"Along with the waiver of the Tourism Tax at the federal level, these forms of support will be able to spur interest towards reactivating tourism and supporting tourism recovery efforts for months to come.
"The six month exemption is part of the plan, together with various promotional efforts and an upcoming tourism incentives programme, which will be introduced in stages to continuously attract domestic tourists throughout the coming months until the end of the year," he said today.
The hotel fee charges were started back in 2014, at RM3 per night for hotels rated four stars and above; and RM2 per night for hotels rated three stars and below.
The Covid-19 pandemic has greatly affected the state's tourism industry with the closure of several hotels, with the latest being the iconic Holiday Inn Resort.
The four-star family resort has two buildings along Penang's tourism belt, one which faces the sea and the other across the street from it, backed by the hills.
Malaysian Association of Hotels (MAH) Penang Chapter chairman Khoo Boo Lim had said that he does not expect the hotel occupancy rate in the state to exceed 30 per cent by the year end.
After more than two months of lockdown, hotels in the country were finally allowed to reopen last month, along with other economic sectors, under the Conditional Movement Control Order (CMCO).
However, the lengthy closure period impacted hoteliers badly, with some forced to halt operations temporarily while others have had to lay off staff.
The New Straits Times had previously reported that Jazz Hotel, Penaga Hotel and Jerejak Island Resort here, all of which are managed by VHM Hotel Management Group, were closed temporarily until further notice.
Other Penang hotels that managed to reopen are offering low room rates to rejuvenate their businesses.