Lang said the situation will eventually normalise as customers get used to the slight increase in prices. – Pixabay photo
SIBU (March 2): The increase in the sales and service tax (SST) from six to eight per cent starting today would only affect the hotel industry temporarily, opined Malaysian Association of Hotels Sibu Chapter representative Lang Jai Lee.
He said the situation will eventually normalise as customers get used to the slight increase in prices.
“People may feel it is a bit costly (to hold functions in hotels) and will scale back.
“In other words, they do not want (to hold) so many functions (in hotels), maybe they slightly reduce.
“Based on my experience, as time goes by and after a certain period of time, things will normalise and they will get used to it,” he told The Borneo Post.
Lang was asked if the increase in SST starting today would affect the hotel industry, particularly its banquet function business.
He added that if there is a karaoke session during the banquet, the SST would be imposed separately from the banquet.
With the fasting month of Ramadan just around the corner, he reckoned that the business will slow down before picking up again during Qing Ming Festival on April 4 with reunion dinners.
“Then in June, during the Gawai Dayak festival, there will be weddings,” he said, adding that the food and beverage services in hotels would not be affected as the SST on them remains at six per cent.
Touching on room occupancy, Lang opined that hotel guests would only opt for cheaper rooms in the short-run before returning to normal again after a while.