Presenting the suggestion to the Council of Eminent Persons, its president, Cheah Swee Hee said the tax which became effective Sept 1 last year, among others, discouraged long stay in the country.
"The moment we have a flat rate we are not actually encouraging long stay because we are charging based on every night they stay," he told reporters after attending a briefing session with the CEP.
Under the tourism tax, foreign hotel guests have to pay a flat fee of RM10 per room per night, regardless of the hotel's star rating.
Cheah also called on the federal government to create a new regulation on unlicensed hotels such as those promoted via AirBNB to make a fair playground for everyone. - Bernama