By Rosli Mansor & Ahmad Razali
IPOH: The enforcement of the RM3 Local Service Charge (CPT) per room per night, set to take effect from January 1, 2025, has raised concerns among hoteliers across the state.
Hotel management representatives told Ipoh Echo/Peraktastic that they frequently receive complaints regarding the CPT, particularly for room bookings made by government departments.
Payment issues often arise as these departments fail to include the charge in their budget allocations.
“We frequently face this issue. The management is forced to absorb the cost because government departments do not account for it in their budgets.
“The charge is automatically applied to every booking recorded in the local authority’s system. Despite the financial strain, hotels are compelled to resolve the issue.
“There have been numerous complaints from customers and foreign tourists about this charge; however, they have no choice but to pay it,” said a hotel representative who requested anonymity.
The representative further suggested that government bookings should include the charge as part of the accommodation cost to ensure smoother transactions.
“We hope the state government will reconsider this decision, as the charge has led to dissatisfaction among tourists and visitors.
“From an industry perspective, hoteliers are concerned that the increase in accommodation costs could negatively impact the competitiveness of local hotels, particularly in the budget and mid-range segments.
“Tourists may opt for destinations offering cheaper accommodation without additional charges. Hotels may also struggle to maintain booking rates if this fee is perceived as an extra burden,” the representative explained.
The RM3 Local Service Charge (CPT) was announced by State Housing and Local Government Committee Chairman Sandrea Ng Shy Ching in mid-2024.
The announcement has since drawn mixed reactions from hotel operators and the public.
