Tourism Tax Revenue Jumps to RM186 Million
Significant Increase in Tourism Tax Revenue
KUALA LUMPUR: Prime Minister Anwar Ibrahim has revealed a significant jump in tourism tax revenue from RM1.03 million in 2022 to RM186 million in 2023. The annual revenue from tourism tax may be found in fiscal outlook and revenue estimates documents published by the ministry.
Sharing Revenue with States
Under a policy introduced in 2019, half of the tourism tax collected in each state is distributed back to that state to help drive local tourism efforts. This approach aims at strengthening the role of state governments in promoting tourism through local campaigns, facility upgrades, and other tourism-boosting activities.
Government’s Commitment to Tourism Tax Revenue
Prime Minister Anwar Ibrahim emphasized that the government’s commitment to sharing tourism tax revenue with states not only supports local economic growth but also seeks to improve the experience of both domestic and international tourists. "This measure is meant to help states boost local tourism, including funding tourism promotions and improving facilities," he said in a written parliamentary reply.
Breakdown of Tourism Tax Revenue
The top sources of tourists come from Singapore, Indonesia, Thailand, China, and Brunei, with many, especially from Singapore, attracted by favourable exchange rates. Other significant sources include India, South Korea, Vietnam, and Australia, all of which contribute a substantial number of tourists each year.
Formula for Redistributing Revenue
The formula and criteria used for redistributing these revenues involve a comprehensive analysis of each state’s tourism industry, including its unique attractions, infrastructure, and marketing strategies. This approach ensures that each state receives a fair share of the tourism tax revenue, enabling them to develop and promote their own tourism initiatives.
Conclusion
The government’s commitment to sharing tourism tax revenue with states is a significant step towards improving the overall tourism industry in Malaysia. By supporting local tourism efforts, the government aims to promote economic growth, create jobs, and enhance the country’s global competitiveness.
FAQs
Q: What is the purpose of sharing tourism tax revenue with states?
A: To help drive local tourism efforts, fund tourism promotions, and improve tourism facilities.
Q: How does the government distribute tourism tax revenue?
A: Half of the tourism tax collected in each state is distributed back to that state.
Q: Who are the top sources of tourists in Malaysia?
A: Singapore, Indonesia, Thailand, China, and Brunei, with many from Singapore attracted by favourable exchange rates.
Q: Who are the other significant sources of tourists?
A: India, South Korea, Vietnam, and Australia.