Malaysia hotel rates to rise 30% in 2024, but weaker ringgit will still lure tourists

[KUALA LUMPUR] With Malaysia raising the sales and services tax (SST) at the start of 2024, hotel room rates across the country are also set to go up next year – in some cases, by as much as 30 per cent.

Christina Toh, the president of the Malaysian Association of Hotels (MAH), said the dearer rates are not just about the higher SST, which is set to go up to 8 per cent, from the current 6 per cent. She added that many hoteliers are feeling the strain from higher operation costs due to integrated supply chains.

While the SST does not cover certain categories such as food and beverage and telecommunications, she noted that a chain reaction in terms of price hikes will occur throughout various sectors of the economy, including hospitality. “Regardless of how the hotels respond, the effect will be felt throughout the industry and is expected to influence room rates,” Toh said earlier this month.