KUALA LUMPUR (Sept 22): The government's plans to boost its coffers by introducing tourism service fees at hotels and increasing passenger service charge (PSC) at airports may discourage tourism, said the Malaysian Association of Tour and Travel Agents (MATTA).

MATTA president Datuk Hamzah Rahmat said in a statement today that an increase in charges would boost government revenue in the near term, but may result in a net loss over the long run.

"The loss of earnings from tourists turned away by new fees and higher charges is likely to surpass the amount collected from guests and passengers. As such, continuing to increase taxes is not sustainable. To stimulate growth, many countries are reducing taxes, as increase will stifle," he said.

The Edge Financial Daily had, on Sept 2, reported that the tourism and culture ministry planned to impose a tourism services fee of between RM5 and RM30 per room, per night, on anyone who stays at a hotel or serviced apartment — be it a local or foreign tourist — as a means to increase funds to promote Malaysia as a tourism destination.

Today, news reports highlighted, quoting transport minister Datuk Seri Liow Tiong Lai that a new PSC or airport tax, which will see higher rates imposed on air travellers, will be in place from Jan 1 next year.

In his statement, Hamzah pointed out that Malaysia Tourism Promotion Board (Tourism Malaysia) traditionally maintains a large network of offices nationwide and globally, but said such a scale of physical presence is no longer necessary in today's digital age.

As such, he highlighted that "a lot of fat can be trimmed off", with funds saved channelled into development as well as advertising and promotions to draw more in more tourists.

"If Tourism Malaysia can do that, it will be a mean and lean organisation and earn the salute of tourism industry players," he said.

In the MATTA statement, issued to welcome the appointment of Datuk Siew Ka Wei as the new chairman for Tourism Malaysia, Hamzah also lauded the government's choice and said Siew is probably the best man to helm Tourism Malaysia.

He went on to say that Siew's communication and entrepreneurial skills are "much needed to provide the counterbalance" as a holistic approach is needed to overcome the industry's challenges.

"MATTA is ready to lend its full support to Datuk Siew to accomplish the tasks he had set out to do. The ultimate aim of our tourism industry is to grow the number of foreign visitors and domestic tourism, which will boost our economy and provide jobs to a large number of people," said Hamzah.