| Who Decides Whether Hotel Fees Increased or Not - The Mayor or the Chief Minister |  | ||
| Penang Island City Council (MBPP) mayor Rajendran Anthony |
As mentioned, Malaysia has 3 levels of Government - the FEDERAL government, the STATE government, and the Local Government. Sadly, Malaysians only NOW elect in the Federal Government and the State Government. The right to democratically elect the LOCAL government was STOLEN from the people - first because of the 'Indonesian Confrontaion' which suspended Local Government Elections, and then by the Federal Government(with no objection from State Governments) who enacted an Act that prevented democratic elections, and put in place 'political appointments' by State of persons who will be in the Local Government.
Local Government, like State Government and Federal Government, have their OWN separate areas or jurisdictions. It is Local Government power to decide who can do business within their jurisdiction - they decide on permits/licences/advertisements/approval of building or development.
Recently, local media reported that Penang was considering raising hotel accommodation fees, a form of local tax levied by the Penang Island City Council (MBPP), by at least 50 percent.
Now, in Penang Island - it was the Penang Island City Council (MBPP) that decided that all hotels need to pay a new 'tourism tax/fee' at a certain rate. Now, there is talk that this fee/rate may be doubled. Money collected by the Local Government will be used by the Local Government...
SO, why is the Penang Chief Minister being a busy body? He is NOT in the Local Government - even if he now has the power to appoint the mayor and Local Councillors...
“However, the state government has not opted to increase hotel fees, as alleged, and no discussions on the matter have ever taken place,” he [Penang Chief Minister Chow Kon Yeow]told reporters after inaugurating Pos Shop Datuk Keramat in George Town today.Must the LOCAL Council(Government) OBEY the Chief Minister or the State Government? NO unless there is some law that says so...
Penang Chief Minister Chow Kon Yeow
The Chief Minister of the State and/or as a person residing in within the Local Council jurisdiction, has the right to express his views/opinions - BUT he certainly should not have the power to decide how the Local Council should do or not do.
However, if the imposition of this hotel 'tax' is by the State Government by State law - then, of course, the Chief Minister and government have every right to increase, decrease or even abolish this 'tax' - so, clarify, is this 'hotel tax' imposed by Local Government or State Government?
Now, sometimes the State Government wrongly believes that LOCAL GOVERNMENT is under them - and must do as the State Government orders...IF SO, why don't we just abolish Local Government and transfer all its powers/responsibilities/obligations directly to the State Government - no need for political appointments and the local council will be just a State Department...??
ODD also matters of the Local Government are being raised in the State Assembly - 'During the Penang state legislative assembly sitting in May 2024, it was
revealed that RM72 million had been collected from hotel fees since
their introduction in 2014, up to April 2024.' - the question now is whether the Local Government collected fees is being transferred to State Government to use as it pleases?The law now requires Local Government to furnish information to the State - but I do not believe it includes monies.
For, the Federal Government - we have the Parliament (open to public, live telecast, HANSARD(minutes of proceedings) available to public)
For State, we have the State Legislative Assembly (open to the public, HANSARD, etc - available to the Public
For the Local Government - we have the Local Council Meetings (however, although the law says are opened to the public is 'closed to the public' by choice of the Local Council itself, access to Hansard or minutes also ???) The law
23 Meetings of local authority to be public[LOCAL GOVERNMENT ACT 1976]
All meetings of the local authority shall be open to the public and to representatives of the Press unless the local authority by resolution at the meeting otherwise decides:
Provided that this section shall not apply to any Committee of the local authority unless such Committee by resolution otherwise decides.
What is Penang's Position? What is DAP's position? Restoration of Local Council Elections or just continue with POLITICAL APPOINTEMENT where the Chief Minister and State Government, and not the people, decide on who will be Mayor and Local Councillors - The Local Government?
No plans to raise hotel fees - Penang CM
Bernama
Published: Jan 17, 2025 9:33 PM
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Updated: 8:33 PM
Penang Chief Minister Chow Kon Yeow denied claims in media reports that his state government plans to increase hotel accommodation fees by up to 50 percent this year.
He clarified that no such proposals or discussions have been initiated by his administration.
“The revenue generated from hotel accommodation fees in the state is insufficient to fund promotional activities and maintain tourism-related infrastructure.
“However, the state government has not opted to increase hotel fees, as alleged, and no discussions on the matter have ever taken place,” he told reporters after inaugurating Pos Shop Datuk Keramat in George Town today.
Recently, local media reported that Penang was considering raising hotel accommodation fees, a form of local tax levied by the Penang Island City Council (MBPP), by at least 50 percent.
Commenting further, Chow noted that the repair of several tourist sites and the construction of new infrastructure for visitors are largely funded by state government revenue, rather than hotel fees.
“For instance, the Fort Cornwallis restoration project requires an allocation of between RM15 million and RM20 million, while the Gurney Bay development project costs RM220 million.
“All these expenses are borne by the state government, as the revenue from hotel fees is relatively small,” he explained.
During the Penang state legislative assembly sitting in May 2024, it was revealed that RM72 million had been collected from hotel fees since their introduction in 2014, up to April 2024.
- Bernama, Malaysiakini, 17/1/2025
Penang may increase hotel fees by 50%, says mayor
Rajendran Anthony says this will aid state efforts to boost tourism revenue, improve infrastructure and preserve heritage sites.
Currently, visitors staying in four-star hotels and above pay RM3 per night for the tax, while those in three-star and below are charged RM2.
The proposed hike comes as the state seeks to enhance its tourism offerings and fund related infrastructure, said Penang Island City Council (MBPP) mayor Rajendran Anthony.
“We’ve been considering this increase for some time now. While I can’t provide an exact figure yet, a 50% rise is likely,” he told reporters at the opening of a hotel at Farquhar Street here.
Chief minister Chow Kon Yeow, who was with him, said the current fees introduced many years ago had been instrumental in supporting tourism promotions and infrastructure development.
He said this was to meet the demands of Penang’s growing reputation as a world-class tourist destination.
Over RM72 million has been collected from the Penang island and Seberang Perai city councils since the hotel fee was introduced in 2014, according to a state assembly reply.
In 2014, RM3.7 million was collected, rising to RM8.6 million in 2015. This increased further to RM9.4 million in 2016 and RM9.8 million in 2017.
In 2018, the amount dropped slightly to RM9.6 million and to RM9.4 million in 2019.
During the pandemic, collections fell sharply to RM3.5 million in 2020 and just RM92 in 2021.
As tourism recovered, the amount increased to RM3.8 million in 2022 and hit a record RM10.6 million in 2023.
In 2024 up to September, the state has collected RM8.6 million. FMT, 15/1/2025
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