The Malaysian Tourism Federation (MTF) has called for the abolition of the entertainment tax, arguing that the sector is being treated as a convenient source of government revenue rather than a strategic economic driver.
The federation warned that a multiplying array of tourism levies threatens to erode Malaysia’s competitiveness in the region.
The intervention comes as the Johor state election approaches, placing fiscal policy and tax burdens under scrutiny.
Industry leaders contend that excessive taxation on tourism activities could deter visitors and weigh on hotel occupancy and retail spending, particularly in border states like Johor where cross-border tourism is a key economic pillar.
The MTF’s stance highlights a broader tension between short-term revenue needs and long-term sector growth.
With regional competitors such as Singapore and Thailand actively promoting tourism incentives, Malaysian operators argue that additional taxes undermine efforts to attract high-spending travelers and MICE (meetings, incentives, conferences, and exhibitions) events.