tourist tax malaysia 2023

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Malaysia Tourism Tax: What You Need to Know in 2024

Updated on : May 2nd, 2024

The Malaysian Tourism Tax Bill was passed in the Senate on 27 April 2017 and t he TTx has been in effect since 1 September 2017. All accommodation providers have to collect TTx from tourists staying at their premises. The tax at a rate of MYR10 per room, per night has been required to be collected by the accommodation operator and then paid to the Royal Malaysian Customs Department (RMCD).

The ambit of the law has been significantly widened under the new amendments which were effective from Jan 1, 2023 and now any digital platform whether located in Malaysia or outside Malaysia, on providing services relating to online booking of accommodation in Malaysia shall be liable to be registered for Tourism Tax in Malaysia.

What is the Tourism Tax in Malaysia?

The Tourism Tax in Malaysia, also known as TTx, is a tax charged for all foreign passport holders staying at accommodation premises in Malaysia.  It is collected by the operators of these premises and is charged at a fixed rate of RM10.00 per room per night.

Malaysian nationals and permanent residents are excluded from the tax

Who is responsible for collecting and remitting tourism tax in Malaysia?

As per the  policy update issued by the Malaysian government, the responsibility for charging, collecting, accounting, and remitting tourism lies on Digital Platform Service Providers (DPSPs) like Agoda and Booking.com for all online bookings, irrespective of whether the DPSP or the hotel operator receives the payment. 

The hotel operators are liable to collect and remit TTx only for offline bookings

However, the policy has granted a grace period from 1 April 2023 TO 31 December 2025. During the grace period, the policy eases the compliance burden on DPSPs based on the booking and payment nature. Here's how it works:

• If a booking is made online, but payment goes directly to the hotel operator: The responsibility for collecting and remitting TTx falls on the operator.
• If both booking and payment are done online through the DPSP: Only, then does the responsibility to collect and remit tourism tax lie with the DPSP.

Who has to pay Tourism Tax?

The tourism tax is a consumption-based tax.  Foreign tourists staying at accommodation premises in Malaysia are ultimately liable to bear the burden of Tourism tax in Malaysia. However, it is collected by the accommodation operation or digital platform service provider (DPSP) and remitted to the government on behalf of the tourist. 

How to Pay?

• Tourists, upon payment to DPSPs (Digital Platform Service Providers) submit proof of TTx payment. In cases where proof is provided, registered operators are relieved from collecting TTx directly from tourists. However, if tourists fail to provide proof, DPSPs must collect the TTx amount and account for it to the RMCD.
• From 2023, DPSPs that facilitate the online booking of accommodations in Malaysia (“online travel platform operators e.g. Airbnb, OYO, etc.”) to collect tourism tax (TTx) and remit the tax to the RMCD.
• The deposit of Tourism tax in Malaysia is completely digital using their customer website MyTTx.

Key Highlights:

• MyTTx is an online submission and payment system for tourism tax (TTx).
• It is available 24 hours daily and accessible anywhere.
• The system can be accessed through any latest browser and is best viewed at 1024 x 768 resolution or higher.

When to Pay?

• Operators have to file a return every three months to account for the tourism tax (“TTX”) received. Note: If the operator is GST registered, the operator must file a tourism tax return in the same taxable period in which the operator files his/her GST returns (i.e. monthly or quarterly).
• The deadline to make payments of tax is clarified by stating that payment is due “not later than” the last day of the month following the end of each taxable period.

Benefits of  Malaysian Tourism Tax

Tourism Tax comes with several advantages that contribute to the sustainable development of the tourism industry and the overall growth of local economy.

• Revenue Generation: The primary purpose of the Tourism Tax is to generate revenue for the Government to develop and enhance tourism-related infrastructure and services. This includes the development of tourist attractions, accommodation facilities, transportation networks, and other amenities that enhance the overall visitor experience.
• Promotion of Tourism: The funds from the Tourism Tax can be allocated to marketing and promotional activities aimed at attracting more tourists to Malaysia. This helps in boosting the country's image as a desirable tourist destination on a global scale.
• Cultural Preservation: Tourism Tax revenue can be invested in projects aimed at preserving and promoting Malaysia's rich cultural heritage. This may involve the restoration of historical sites, supporting traditional arts and crafts, and organizing cultural events that showcase the country's diverse cultural tapestry.
• Job Creation: A thriving tourism industry leads to increased demand for services, creating job opportunities across various sectors. The revenue generated from the Tourism Tax indirectly contributes to employment generation, benefiting local communities and individuals.
• Balance Over Tourism:   The tax is becoming popular as a tool to battle the pressing issue of over-tourism in countries where both, indigenous nature and culture is at risk.  It allows the government to monitor and manage the tourism sector effectively, ensuring compliance with standards and regulations set to maintain the industry's integrity.

TTx is here to stay

As Malaysia continues to position itself as a premier tourist destination, the Tourism Tax plays a pivotal role in sustaining its ecosystem. Navigating TTx is a necessity for a primarily tourist driver economy. It needs involvement of all stakeholders DPSPs, tourists, and the RMCD to make the system better and smoother every day.

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Malaysia Tourism Tax (TTX) 2023: What You Need to Know

In line with the announcement made by the Malaysian government regarding the Tourism Tax , I will talk about a series of questions that are commonly asked by hotel owners or operators, thus helping all of you to find the answers that are related to it. 

1. What is a Tourism Tax?

Tourism Tax (TTx) is referred to as a tax charged for all foreign passport holders at accommodations premises collected by the operators effective from 1st September 2017 in Malaysia. It is charged at a fixed rate of RM10.00 per room per night.  However, during the Covid-19 pandemic, The Malaysian Government has announced the exemption of the Tourism Tax for all foreign passport holders for hotel stays between 1st March 2020 and 31st December 2021 then further extends to 31st December 2022.  Now, the Malaysian government has announced that the Tourism Tax will resume back starting from 1st January 2023. 

2. How is the RM10 per room per night applied?

Assuming one room is booked for one night by John (who is a Filipino), the TTx charged to John will be RM10.00 x 1 room x 1 night = RM10.00  In the 2nd Scenario, assuming two rooms were booked by Dianne (who is an Indonesian) for three nights, so the TTx charged to Dianne will be RM10.00 x 2  rooms x 3 nights = RM60.00 

3. How is this new to the travel industry starting January 2023?

Since September 2017, a guest who is a foreigner is subject to paying Tourism Tax when staying at any “accommodation premises” in Malaysia; this tax is collected by the operator at the accommodation premises upon check-in, regardless if the booking was made online or walk-in. However, starting from 1st January 2023. For any bookings made through digital platforms that provide reservation services such as booking.com, Agoda, and Expedia, the platform is the one to collect the Tourism Tax directly from the foreign guests when the guest made the booking and payment online through the platform. The digital platform provider shall remit the tax collected to the RMCD. Whereas, for booking that was made online through the platform but payment only upon arrival at the accommodation premises, the TTx shall be collected by the accommodation operator upon guest arrival. The responsibility of remitting the tax collected for this booking shall be by the accommodation operator instead.

We have just received the update that currently, only AGODA will collect the TTx directly from the guest together with the room charges if they made the payment online. Whereas, for other OTAs like Expedia, Booking.com & Traveloka, the TTx will be collected upon check-in by the property operator, UNTIL FURTHER NOTICE. 

4. What if the booking has been made before 1st January 2023 for the check-in date after on or 1st January 2023? 

If a foreign traveller has made a booking on a digital platform before 1st  January 2023, for check-in on or after 1st of January 2023, the Tourism Tax must be collected by the accommodation operator upon guest arrival and the accommodation operator is required to remit the tax to the RMCD.

5. What if my property did not register for TTx? 

We advise you to further consult with your business advisor or check with RMCD if you have not registered as a Tourism Tax registrant. Generally, if you are operating accommodation premises of 5 rooms or more, you are liable to be registered.  You may also check this website https://www.myttx.customs.gov.my/ to further understand the registration. 

6. If a Malaysian with his foreign friend both check into the same room and the booking was made and paid by the Malaysian, is TTx chargeable? 

In this case, it is not subject to Tourism Tax because a local stayed and paid for the stay. However, the Tourism Tax is chargeable in the event that the foreigner stays and pays for the stay.

7. If the reservation has been made with full payment together with the TTx for the booking made via OTAs, then the guest request for the cancellation on a non-refundable policy, will the TTx will be refunded?

Unfortunately, we are unsure of this. Do let us know in the comment section if you have more information regarding this. What I can say is, you may refer to the T&C directly from the OTAs. 

8. Will TTx subject to SST too? 

No. The operator is not allowed to charge SST on the Tourism Tax. 

9.  Is day use chargeable to TTx?

No, if the day use charge is not equal to the room rate per night.

10. Is a Digital Platform provider compulsory to collect private data such as passport no. or ID no. to ensure nationality?

Yes. The Digital Platform provider should make an appropriate adjustment in its system to capture the information that is to identify the citizenship of the tourists.

11. John makes an accommodation booking online and provides inaccurate information which resulted in TTx not being collec ted. Who wi ll be responsible? 

If due diligence has been done to obtain the information required from the tourists, the Digital Platform provider will not be responsible for any inaccurate information provided by the tourist, which may result in the under-collection of TTx. 

Check out this video where we answer a frequently asked question regarding the Tourism Tax

That’s all 11 common questions that we heard so far regarding the Malaysia Tourism Tax. Please share this article if you find it useful and drop any questions in the comment sections if you think there are more questions that should be answered. 

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Malaysian Tourism Tax FAQs

Home > Partner Help > Your reservations > Malaysian Tourism Tax FAQs

Last updated: 1 year ago | 8 min read time

Malaysian Tourism Tax FAQs (CN)/简体中文

Malaysian Tourism Tax FAQs (HK)/中文 (香港)

Malaysian Tourism Tax FAQs (TW)/繁體中文

Malaysian Tourism Tax FAQs Japanese/日本語

Malaysian Tourism Tax FAQs Korean /한국어(대한민국)

Malaysian Tourism Tax FAQs Thai/ไทย

Malaysian Tourism Tax FAQs (MY)/Malay

This article will explain the Malaysian Tourism Tax and answer FAQs.

• Effective 1st Jan 2023 – 31 Dec 2025, Digital Platform Service Providers (DPSPs or Platform) are liable to collect and charge TTx from any tourists for reservations that are i) made through the DPSP’s platform and ii) where payment is made to a DPSP (such as Agoda) and remit such TTx to the Malaysian Customs Department. If payment of TTx has been made to the platform, then the accommodation premises should not collect the TTx again, provided proof of payment of TTx can be furnished; otherwise the accommodation premises shall collect TTx. For bookings where payment is made to accommodation premises in Malaysia directly (pay at property), it is the accommodation premise’s obligation as a registered operator to collect and remit TTx to Malaysian Customs Department.
• Starting on 1 Jan 2026, the government may choose to alter or continue with these rules.
• For more information, please visit myttx.customs.gov.my .
• a) Malaysian nationals (holders of a MyKad card)
• b) Permanent residents of Malaysia (holders of a MyPR card).
• If the property is listed and booked as one unit, then the Tourism Tax of RM10/room/night will be imposed to the unit only, so for 1 night, the applicable TTx = RM 10.
• If the property is listed on platform as three separate units (one bedroom per listing), then TTx shall be imposed on each of the rooms. So, if three rooms are booked for 1 night, the TTx would be RM 10/room/night x 3= RM 30.
• Q: Will this affect existing bookings, especially for Pay at Hotel existing bookings? A: Guests who are tourists have been subject to pay TTx since September 2017 when staying at any accommodation premises in Malaysia; this is normally collected by the operator i.e. accommodation premises operator. However, starting from 1 Jan 2023 and continuing until 31 Dec 2025, bookings made through platforms providing reservation services such as Agoda are liable to collect and charge TTx for any bookings made on the platform in which the platform collects the payment from bookers. If a traveler has made a booking on Agoda before 1 Jan 2023, and where TTx is applicable, the TTx must be collected by the property and remitted to the RMCD. For bookings of Malaysian properties made on Agoda on and after 1 Jan 2023 and continuing until 31 Dec 2025, Agoda as the platform is required to collect TTx if the payment for the booking is collected by Agoda. Agoda will endeavor to collect TTx on most bookings and issue a document as proof of TTx payment to the booker. However, for Pay Property bookings, TTx needs to be collected by the property from the booked guest at check-in.
• If the payment model “Pay to Agoda”, “Merchant Commission” and TTx applies – TTx is INCLUDED in the price and is collected by Agoda.
• If the payment model is “Pay to Agoda”, “Merchant Commission” and TTx doesn’t apply — TTx is NOT collected.
• If the payment model is “Pay at Hotel” and TTx applies — Malaysia Tourism Tax is INCLUDED in the price and collected by the property.
• If the payment model is “Pay at Hotel” and TTx doesn’t apply — Malaysia Tourism Tax is NOT collected.
• Q: How do I verify that TTx has been collected by Agoda? A: Agoda will issue to bookers proof of TTx collection (if collected by Agoda), unless TTx needs to be collected by the property as explained above.
• Q: My property did not register for Tourism Tax, does this apply to me? A: To determine whether you should be registered for TTx or not, please consult your business advisor or seek RMCD’s further guidance. The exemption from TTx for certain property types (Item 3, Tourism Tax Exemption Order 2017) e.g. homestay/kampungstay operator, operator with 4 accommodation rooms or less, does not apply when the reservation is made through a DPSP’s platform. Even if you are exempt from TTx, TTx would still be applicable when a booking of your property is made on Agoda by a qualified tourist.
• Q: If a tourist books accommodation through Agoda then subsequently extends their stay directly with the accommodation premise operator, who is liable to collect the TTx for the additional stay period? A: For tourists who book accommodation through a platform and extend their stay, the accommodation premise operator will collect any TTx for the additional stay. Platforms such as Agoda should not be liable to collect the TTx for the additional stay period, unless the additional stay period is booked using the online platform. Source: GUIDE ON TOURISM TAX (DIGITAL PLATFORM SERVICE PROVIDER) as of 13 Aug 2021.
• Q: If I have other questions on the Malaysian Tourism Tax, who should I contact? A: Please contact our Accommodation Service Team via the Need Help? button in YCS.
• Q: In case of a dispute by a customer, what should I do and who should I contact? A: Please contact our Accommodation Service Team via the Need Help? button in YCS.
• Q: Upon check in, I found that the guest is a foreign tourist, but the booking was made by a local. In this case, what should I do? Should I collect the tax and remit to RMCD? A: Yes. You should collect the applicable TTx in such case and remit to RMCD.
• Q: Is the guest still entitled to a TTx refund if the booking is non-refundable, but it is a no-show? A: TTx will in all cases be refunded to the booker if the stay at the premise does not take place. For more specific cases see below:
• If a full refund is triggered (cancellation on refundable booking) => Agoda refunds the entire amount. TTx will be refunded in full.
• If a booking is cancelled with 100% charge (cancellation on non-refundable booking) => Agoda keeps the original amount not related to TTx. Payment to the property should not be affected. However, TTx should be refunded to the booker.
• If a booking is cancelled with partial charges=> TTx will be refunded to the booker.
• If the booking is amended => Applicable tourism tax will be recalculated based on the new room nights of the amended booking. The amendment voucher should indicate the new value of tourism tax that has been paid.

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Tourism Tax Policy No. 2/2023: Extension of Grace Period for Tourism Tax Collection by DPSP

• June 24, 2023
• Jun 25, 2023

Attention all Digital Platform Service Providers ( DPS P) operating in Malaysia,

The Royal Malaysian Customs Department (RMCD) published Tourism Tax Policy (TTP) No. 2/2023 on April 13, 2023, on its MyTTx website to inform you of the extension to the grace period for the collection, accounting, and remittance of tourism tax (TTx) from foreign tourists who make online bookings for accommodation premises through registered DPSPs.

Under subsection 20B (1) of the Tourism Tax (Amendment) Act 2021, every DPSP is responsible for providing online booking services for accommodation premises in Malaysia to collect the tourism tax from the respective tourists.

Based on the previous grace period granted through Tourism Tax Policy No. 1/2023, we are pleased to inform you that the Minister of Finance has agreed to extend the same grace period from April 1, 2023, to December 31, 2025, for the following matters:

• Registered DPSPs who do not receive payment directly from foreign tourists for the online booking of an accommodation premise are not liable to collect, account, and remit the tourism tax to the RMCD according to the registered DPSP’s relevant taxable period.
• Registered operators who receive payment for the accommodation premises provided through online bookings made by foreign tourists via a DPSP are required to collect, account, and remit the tourism tax to the RMCD according to the registered operator’s relevant taxable period.
• Registered DPSPs who receive payment for the accommodation premises provided through online bookings made by foreign tourists are liable to collect, account, and remit the tourism tax to the RMCD according to the registered DPSP’s relevant taxable period.

This extension aims to provide DPSPs ample time to comply with tax collection procedures. We encourage all DPSPs to review Tourism Tax Policy No. 2/2023 for further details and specific guidelines.

Please refer to the Malaysia Tourism Tax System (MyTTx) website for additional information or clarifications.

References:

• Tourism Tax Policy No. 1/2023
• Tourism Tax Policy No. 2/2023

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Tourism Tax Policy and Amendments to Service Tax Policy

• Home ›
• Insights ›

Useful resources

• MyTTx Portal – TTx Policy No. 1/2021
• MySST Portal – Service Tax Policy

The Royal Malaysian Customs Department (“RMCD”) has uploaded a Tourism Tax Policy to recap the exemption of Tourism Tax announced by the Government earlier as well as amendments to two Service Tax Policies on its official portal.  Please click on the above header links for a copy each of the policies. 

Set out below are the salient points:- 

Tourism Tax Policy No. 1/2021

• The exemption of Tourism Tax for the period from 1 July 2020 to 30 June 2021 has been further extended until 31 December 2021. 
• Accommodation operators are still liable to submit TTx-03 Return to account and pay the Tourism Tax received from foreign tourists for accommodation provided before the exemption period or any Tourism Tax where payment has not been received from tourists within twelve calendar months that become due in the taxable period. 
• The amount of Tourism Tax exempted must be stated in Column 7 of the TTx-03 Return i.e. the amount exempted for each night per room. 
• During the exemption period, Tourism Tax should be recorded as “exempt” or “NIL” or “RM0.00” in the invoice issued to foreign tourists. 

Amendment (No.2) to Service Tax Policy No. 9/2020

• Registered accommodation premise operators are exempted from charging Service Tax from 1 March 2020 to 31 December 2021.
• Service Tax is exempted for services occurring on 31 December 2021 and ending 1 January 2022. 

Amendment to Service Tax Policy No. 2/2019

• Subject to meeting conditions, Service Tax exemption on imported taxable services for companies in Labuan effective 1 September 2019 is now extended to 31 December 2021. 

Our highlights are intended to provide a general overview of the key proposed tax changes and should not be used or relied upon as a substitute for detailed advice or as a basis for formulating business decisions.

Should you have any questions or require further clarification, please do not hesitate to email or contact any of our Executive Directors, Directors, Associate Directors or Managers whom you are accustomed to dealing with or who are responsible for the tax affairs of your organization.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Is Malaysia’s Tourism Tax Good Policy?

The tourism tax, which was first introduced in 2017, is currently levied on a flat, RM10-per-night basis for all foreign visitors to Malaysia – and also on some people who aren’t visiting at all!

They say the only sure things in life are death and taxes, and a general disdain for taxation is quite possibly one of the few things nearly all people agree on. But I also think that many, if not most, of us understand why taxes exist. And we accept the imposition of taxes more easily when we see good things arising from their collection.

But it’s a funny old business for sure. I remember many years ago – 1993 to be exact – when my home city of Denver, Colorado was awarded one of two major league baseball expansion teams. For the first two years, the team played in the city’s football stadium since the seasons for the two sports don’t really overlap. The fields for baseball and American football are, of course, completely different, so a lot of adjustments had to be made. Calls quickly began mounting for a dedicated baseball stadium, so accordingly, for the six-county area surrounding Denver, a tiny sales tax increase was proposed to fund the stadium’s costly construction. It was only 0.1% – just 1¢ for every $10 spent, the pitch proclaimed – and voters passed it. A genuinely beautiful new $300 million baseball stadium was built in downtown Denver, just over half funded by that tax, and in April 1995, Coors Field opened with its first game. Now, nearly three decades later, the stadium still stands.

Curiously enough, however, that 0.1% tax increase – ostensibly imposed to fund the construction of Coors Field – also still stands (albeit under a fresh new name). As many governments have discovered, once that magical tap of delicious tax revenue is turned on, it’s really hard to muster up the political will to turn it off.

TAXING THE TOURISTS

The one tax that I would very much like to see shelved here in Malaysia – or at least reviewed and modified – is the loathsome ‘tourism tax.’ Although many municipalities impose such taxes in some form or another, the way in which Malaysia levies it on a nationwide basis could probably use some tweaking.

No matter where you go in the country, no matter the room rate of the lodging in which you stay, a flat RM10 per room, per night tourism tax is levied, and innkeepers are required to collect this charge in full and typically upfront (though not always), separate from the bill paid at check-out. It is loudly and clearly announced, too, often noted on a prominent placard at the front desk: this is a tourism tax. Only Malaysian citizens and permanent residents are exempted. (More on this later.)

Does this not seem a bit unwelcoming and unfriendly, as though tourists are almost being openly penalized for choosing to come to Malaysia and spend their money? Officials have said that “most of the money” collected from this tourism tax, which is a significant haul, is used to further promote the country to other tourists, which just seems… odd. A tourist comes to visit and explore Malaysia and spend their money here, and they are taxed specifically so that more tourists can be enticed to come, and then also get taxed for visiting? To my mind, a country should pay, from its own general budget, for promoting itself overseas, not the tourists who have already chosen to visit.

Think of it in a different way. You go to a restaurant, but before you are taken to your table, a RM5 per dish charge is demanded and collected. It doesn’t matter if your selection costs RM150 or RM20. The same fee applies – RM5 per dish. “What is this for?” you ask. “Well,” they explain, pointing to the sign, “it’s our dining tax. We collect this cash from you, then use it to advertise our restaurant so we can get other diners to come. When they do, we’ll collect the same fee from them, then use that to buy even more advertising.”

Would this not elicit outrage? And wouldn’t most diners simply decide to eat elsewhere next time? I feel this is a pretty fair analogy for Malaysia’s tourism tax.

Does it bring in a lot of money? It surely does – early estimates of over RM100 million per 10% in occupancy rate were floated (e.g., about RM654 million for average nationwide occupancy rate of 60%). But is it good policy? That remains an open question.

Surely there must be a better way. Perhaps a blanket ‘occupancy tax’ that is levied universally , and on a modest percentage basis. Even on its face, this seems more equitable, because while paying an extra RM10 per night at a hotel whose rates start at RM900 might not seem like a big bite, how does that translate to paying the same extra RM10 a night for a room that’s RM80 a night? One guest is paying about 1.1% in tourism tax, while the other is paying 12.5%. Additionally, the tax penalty grows if a tourist stays longer in Malaysia, presumably spending more money and adding to the economy all the while. Seven nights? Well, that’ll be RM70 extra, please.

Tourism industry players ramped up calls in 2018 to abolish the tax , which they said was too “in your face” and counterproductive to the goal of stimulating tourist spending. Agencies and tourism groups decried the charge en masses , saying it was an “ unnecessary burden ” on both tourists and on accommodation operators. Despite months of pleading, however, the government pointedly said it had no intention of removing the controversial tax .

After all, the lucrative tap had been turned on, and just as in Colorado, officials found it much too tantalising to turn off.

BUT IT’S NOT JUST FOR TOURISTS

Possibly the most frustrating thing about this so-called tourism tax is that it is cheerfully imposed on working expats and resident MM2Hers, too – people who are in no way tourists in Malaysia. I’ve lived here for 15 years. I work here, I pay taxes here, I spend money here literally every day, contributing to the country’s economy. And yet, if I travel anywhere within the country, and check in to a hotel, I am asked to pay a tourism tax.

Like several other expats with whom I’ve spoken about the issue, I flatly refuse to pay it, explaining that I am not a tourist, but rather a long-time resident. Of course, I realize it’s not the hotel’s doing, and I tell them that – they’re simply executing Ministry of Tourism policy.

But perhaps it’s time to revisit that policy, and either include residents with long-term visas on the exemption list, or rethink the tourism tax approach altogether. Experts more knowledgeable than I have decried tourism taxes as ‘ bad tax policy ,’ saying that it shifts the cost burden unfairly, creates negative effects on consumers and business owners, and hinders the effective promotion of a destination – exactly the opposite effect intended. One comprehensive study found that a 10% increase in tourism tax resulted in a 5.4% decrease in tourist demand.

Moreover, many municipalities which do impose a tourism tax do so to help fund the infrastructure and attractions that tourists enjoy, preserve the environment, or encourage the development of sustainable tourism practices. Some even use the funds to pay for insurance policies to provide an umbrella of protection for visitors in the event of injury. And of course, in some instances – in this era of growing overtourism – some destinations impose taxes simply to disincentivize visits.

But not many places explicitly levy taxes on tourists for the purpose of funding the destination’s tourism marketing goals! And most places tend to impose these taxes a bit more discreetly or indirectly, working them subtly into international airline fares, occupancy taxes, or such.

TIME FOR A REVIEW?

Thailand, which in February 2023 approved a controversial and deeply unpopular 300-baht ‘tourism fee’ for visitors arriving by air (150 baht for land and sea arrivals), did not announce at the time exactly when it would be implemented. In mid-December 2023, they announced it would be postponed indefinitely, ‘until the industry recovers.’

Maybe a rethink of a policy that explicitly taxes tourists for choosing to come here is worth considering for Malaysia, too – and certainly a reversal of treating and taxing resident expats as tourists is in order.

Or maybe there’s just a better way to implement these taxes. If levied as a much lower, percentage-based occupancy tax across the board, it would not only be fairer, it could potentially even generate more revenue, as nobody would be exempt. And why should they be? After all, a Malaysian who lives in KL and visits Kuching is still very much a tourist. And if the funds are used to bolster and improve tourism facilities and keep places clean and sustainable, then locals derive every bit as much benefit from that as tourists – if not more!

Tourism is too important to Malaysia’s economy to implement flawed or unsustainable policy. The country has an abundance of incredible tourism assets and derives immense benefit from tourism, so it’s clear that adopting well-thought-out approaches to managing the resources and funding their upkeep will always be of critical importance.

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Tourist tax: These are the destinations you’ll have to pay to enter

The concept of tourist tax isn’t a new one. City tax has long been the norm for many countries in Europe such as Greece , Spain and Germany , and hotel tax is standard across many destinations, including US states. The impact of Covid on the travel industry was severe – hotels, restaurants and hospitality venues closed, people that relied on tourism for their livelihoods suddenly faced huge losses, and money that the government relied on for development and maintenance was depleted. As a result, while travel continues to normalise post-pandemic, many countries have decided to implement a tourist tax to boost economies and reinvigorate locals. Below, we take a look at what exactly tourist tax is, and which countries are introducing the measure for 2024.

What is tourist tax?

Originally, tourist tax was introduced by certain governments with the aim of tempering over-tourism and generating income from large numbers of travellers entering the destination. Bhutan, for example, has asked tourists to pay a significant sum of money to enter since it opened to travellers in 1974. The country uses the tax (called the Daily Sustainable Development Fee) in an attempt to preserve the country’s natural, undisturbed beauty and to protect traditional Buddhist culture. Similarly, Barcelona uses the city’s tourist tax to fund construction and development projects locally – typically it is around €5 per day per person. Most tourist taxes are added onto the cost of your accommodation.

Which destinations will begin imposing tourist taxes in 2024?

• In Italy , Venice are charging day tourists a fee as of spring 2024
• The Indonesian government has announced that a tourist tax will be imposed on travellers visiting Bali from 14 February 2024
• In 2024, the UK is imposing a new system called an Electronic Travel Authorisation (ETA), whereby visitors from the US, Europe, Australia and Canada will be required to apply for permission and pay to enter the country .
• Next year, the EU will begin implementing a new tourist visa, whereby non-EU citizens travelling from outside the Schengen zone will need to fill out a €7 application to enter the country.

Which destinations currently impose tourist tax?

The below destinations impose tourist taxes on travellers entering the country, but the amount of tax charged changes frequently. We have included some guidance on projected costs, but make sure you check with your accommodation or the tourism board for each destination before travelling to be sure how much you need to pay.

• Austria : the cost of tourist tax is typically added onto your accommodation bill, and is around 3.2 per cent in Vienna .
• Belgium : in Brussels tourist tax is mainly below £3.50, and is added onto your accommodation bill, but it varies from city to city.
• Bhutan : since September 2023, the daily Sustainable Development Fee in Bhutan has dropped to £157 for adults.
• Bulgaria : tourist tax in Bulgaria varies on destination and hotel standard, but it is usually below £1.30.
• Caribbean Islands: most of the Caribbean islands charge tourist tax, and the price ranges depending on the island – in St Lucia , for example, it is around 8 per cent, whereas in the Dominican Republic it is 18 per cent.
• Croatia : the cost of tourist tax in Croatia depends on the season you are travelling in and where you are staying, but it ranges from 20p to 70p per day.
• Czech Republic: in Prague, tourist tax typically costs around CZK 50 per night (around £1.71).
• France : here tourist tax is based on a municipal rate, but standard cost is between 20p and £4.30 per night.
• Germany : it varies from city to city – in Berlin, the standard tourist tax is five per cent of the accommodation price.
• Greece : the price you pay in Greece depends on the standard and size of your accommodation. It shouldn’t be more than £3.50 per night.
• Hungary : travellers should expect to pay four per cent of the cost of accommodation per night.
• Indonesia: from Wednesday 14 February 2024, travellers will have to pay 150,000 rupiah (£7.60) upon entering Bali.
• Italy : depending on the city, tourist tax can be somewhere between 80p and £6.10 per night.
• Japan : if you’re travelling to Japan , expect to pay 1,000 yen (about £5.50) in tourist tax.
• Malaysia : in 2023, the cost of tourist tax across Malaysia is £1.68 per night.
• New Zealand: travellers visiting New Zealand have to pay an International Visitor Conservation and Tourism Levy (IVL) which costs $35 NZD (£16.80)
• Portugal : this country charges tourist tax in 13 cities, including Lisbon and Porto . The cost is £1.75 per night.
• The Netherlands : Amsterdam is one of Europe’s most expensive places for tourist tax – currently the rate states at seven per cent of accommodation price plus a flat rate of €3 (£2.61)per person per night
• Switzerland : the price of tourist tax here varies depending on the destination, and it ranges from about CHF 2 (£1.81) to CHF 7 (£6.34) per person per night.
• Slovenia : again, the rate changes from destination to destination (it is higher in cities than in more rural areas), but generally the cost is around €3 (£2.61)
• Spain : several cities in Spain have recently decided to raise the price of tourist tax, and other cities are in discussions about following suit. In Barcelona , the fee is €4 (£3.48), whereas in the Balearic Islands the fee is between €1 (87p).
• USA: when travelling to the USA from the UK, visitors need to apply for an ESTA (Electronic System for Travel Authorisation), which is a type of visa allowing travellers to stay in the country for up to 90 stays. It is valid for two years. The cost of an ESTA is $21 (about £17)

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When You Go Travelling, Check to See if You're Paying This Tax or Not!

BY Philippe Andrews

Updated 24 Oct 2019

What's covered in this article?

What is tourism tax in malaysia.

Who has to pay the tourism tax?

• Tourists who happen to be Malaysian nationals. 
• Tourists who possess a MyPR card and are thus recognised as permanent Malaysian residents. 

Does this tourism tax get refunded?

Can I use my travel insurance to claim tourism tax?

About the Author

Philippe andrews.

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