This document discusses government incentives to promote the hospitality industry in Malaysia. It provides details on various tax incentives for hotels, tourism projects, and related industries. It also shows data on growing tourism receipts and tourist arrivals in Malaysia from 2005 to 2011. Additionally, it notes that while incentives aim to stimulate investment, tax incentives are not usually primary factors for most investors, and their costs are often hidden and large. Transparency around incentives is important.

1. in promoting hospitality industry in Malaysia
by Nur Hisyam bin Kamaruddin

2. lesson #1:

3. A payment or concession to
stimulate greater output or
investment...
wikipedia
The Free Encyclopedia

4. large intake of money for
businesses and the opportunity for
employment in the service
industries associated with tourism
and hospitality...
Frank Flatters
Professor Emeritus Queen’s University, Canada

5. lesson #2:
govt
incentives

6. incentives for the hotels and
tourism projects
1 Pioneer Status 4 Incentives for the Luxury Yacht Industry
2 Investment Tax Allowance (ITA) 5 Incentive for Healthcare Travel
3 Enhanced Incentives for 6 Incentives for Reinvestments in
Undertaking New Investment in Hotels and Tourism Projects
Hotel and Tourism Projects

7. additional incentives for the
tourism industry
1 Double Deduction on Overseas Promotion
2 Double Deduction on Approved Trade Fairs
3 Deduction on Cultural Performances
4 Incentive for Car Rental Operators
5 Tax Exemption for Tour Operators
6 Tax Exemptions on the Value of Increased Exports
7 Tax Exemption for Promoting International Conference and Trade Exhibitions

8. lesson #3:

9. Tourist receipts to Malaysia shows no sign of slow-down
with ever-growing number of tourist arrival
n u m b e r o f t o u r i s t a r r i va l
receipts
46.1 Billion
49.6 Billion
53.4 Billion
56.5 Billion
58.3 Billion
2005 2006 2007 2008 2009 2010 2011

10. lesson #4:

11. Tax incentives are relatively unimportant to most
investors; investors give greater weight to
simplicity and stability in the tax system than they
do to tax incentives. The costs of incentives are
high and generally non-transparent because of a
variety of unintended effects.

12. lesson #4:
conclusion

13. •Government incentives are not among the key
factors in most investment decisions.
•The costs of investment incentives are not
transparent and are often large.
•The indirect tax system can be a very
important and costly source of tax incentives.
•Tax incentives should be made as transparent
as possible.

14. THANK
.

15. any
ques
tion