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Hospitality
Sub-sector
The hospitality industry is known for its vital role as a significant catalyst of global economic growth in driving socio-economic development and job creation. Domestic tourism stayed in the spotlight in 2021, starting with a partial reopening of the Langkawi domestic travel bubble. This has been an encouraging first step to the recovery of the tourism industry, with a total of 38,748 domestic tourist arrivals and RM15.97 million in tourism receipts recorded in 2021.
To re-invigorate the tourism industry, the Government has outlined several strategies in the Twelfth Malaysia Plan (12MP). Among them are restoring tourist confidence to travel safely in a post-pandemic world and providing better quality products and services such as ecotourism and community-based cultural immersion activities which distinctly portray the Malaysian experience. Safety and hygiene will be the focus of all branding and promotional efforts.
The Government has also launched a ten-year transformation plan for the tourism industry, called the National Tourism Policy (NTP) 2020 – 2030. The NTP was formulated to position Malaysia as among the top ten tourist destinations in both arrivals and receipts. One of the key strategies to remain competitive far into the future is to embrace Smart Tourism.
International and domestic tourists enjoy the country’s unique culture, food and melting pot of ethnicities while indulging in the natural biodiversity of sandy beaches, coral reefs and rainforest. The country’s established network of infrastructure caters for a wide spectrum of travellers, from family to adventure-seeking backpackers.
Among efforts to restore travel into Malaysia is the establishment of a vaccinated travel lane (VTL) with the first one launched in November 2021 between the Kuala Lumpur International Airport (KLIA) and Changi Airport of Singapore. For travel advice and other information for business travellers entering Malaysia, please mysafetravel.gov.my
For more statistics, please click here.
Hotels
1 & 2 Star : 100% Malaysian
3 Star : At Least 30% Malaysian
4 & 5 Star : No Equity Restriction
Theme Parks
No Equity Restriction
Convention Centres
No Equity Restriction
Recreational Parks / Other Tourism Projects
At least 49% Malaysian including 30% reserved
New projects involving these promoted activities within the tourism industry are eligible for incentives:
Theme Parks
Convention Centres
Recreational Parks
Hotels (1- 3 Star)
Other Tourism Projects
To boost investor interest, the Government provides tax incentives for tourism projects including hotels, theme parks, convention centres, recreational parks and other tourism projects.
Pioneer Status (PS)
Companies may benefit from Pioneer Status of 70% of the statutory income for each year of assessment of its business operations.
OR
Investment Tax Allowance (ITA)
Companies may benefit from income tax exemption package of 60% allowance on the qualifying capital expenditure incurred within a period of 5 years where the allowance can be used to offset against 70% of the statutory income for each year of assessment of its business operations.
Expansion, modernisation and refurbishment projects for the following establishments are eligible for incentives:
Hotels (1-5 Star)
Theme Parks
Other Tourism Projects
To strengthen the competitiveness of the tourism industry, the Government provides tax incentives for the expansion, modernisation and refurbishment of hotels, theme parks and other tourism projects.
Investment Tax Allowance (ITA)
Companies may benefit from income tax exemption package of 60% allowance on the qualifying capital expenditure incurred within a period of 5 years where the allowance can be used to offset against 70% of the statutory income for each year of assessment of its business operations.
