Effective from 1 June 2014, a “Local Government Fee” will be imposed on all hotel guests in Penang and the rates vary according to the type of hotel the guest is staying in.
RM3.00 will be charged per room per night for 4-star and 5-star hotels and RM2.00 will be charged per room per night for 3-star hotels and below including all dormitories, budget hotels, hostels and guest houses.
The Local Government Fee will be imposed on all hotel guests who are staying from 1 June 2014 onwards regardless of whether the bookings were made prior to the enforcement date.
For the month of June, the fee collected by the hotels will be submitted to the local government by month end but from July onwards, the fee will be submitted every two months.
The proceeds generated from the fees will be utilised for the development and promotion of tourism infrastructures in Penang. A committee called the Penang Local Government Fee Committee, chaired by the Penang Chief Minister and represented by the local council and hotel association, will be the deciding body on how the fees will be used effectively.
The Local Government Fee will also be imposed even on unlicensed and unrated hotels. However, these hotels are encouraged to apply for their licenses as soon as possible. In this regard, the local government will help ease the process for these hotels to obtain their licenses.
Spend wisely, travel wisely! I know it's more expensive, but this is one of the way to help the state government to maintain and beautify the places all over.
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