Hotel Prices in Malaysia to Spike 30% in March Due to SST Rise

Hotel Prices in Malaysia to Spike 30% in March Due to SST Rise

Be prepared to allocate more to your accommodation expenses!

Travellers, get ready to pay more for your vacation to Malaysia. For those planning a trip in Malaysia, it’s time to allocate a little more to your accommodation expenses. Hotel prices in the country are expected to jump by up to a significant 30% starting in March 2024.

Also read: 14 Nature Escape Airbnbs Near Kuala Lumpur for a Refreshing Getaway

Why is there an expected increase?

This increase is attributed to the increase in the Sales and Service Tax (SST) rate, which was announced to go up from 6% to 8% starting March 2024.

The tax hike will affect the entire hospitality supply chain, leading to higher operational costs for hotels. From cleaning services and utilities to transportation and supplies, everything will see a price increase, which hotels will inevitably pass on to guests. Nevertheless, the full impact might vary depending on the hotel category and location.

Will this affect the country’s tourism?

Image credit: Marc Wieland

While the price hike might be concerning, it’s crucial to note that Malaysia still offers competitive hotel rates compared to other Southeast Asian destinations. As reported by Sinar Harian, Malaysian Hotel Association (MAH) president Datin Christina Toh assured that the price hike would not hinder hotel bookings. This is due to the ongoing promotions and government support, such as visa-free entry for tourists from China, India, and other ASEAN countries.

Hopefully the higher tax revenue generated by the SST will be used to upgrade infrastructure, public services, and tourism facilities that will ultimately benefit tourists in the long run.

Also read: 18 Gorgeous Airbnbs in Kuala Lumpur You’ll Want to Live In

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About Author

Cecelia Chang
Cecelia Chang

Born in a new village in Selangor, Malaysia, Cecelia loves three things in life: Good food, good views, and good deals. She also enjoys exploring new places and experiencing new things on her travels.