In Malaysia, it is federal state with constitutionalelective monarchy. It also has 13 states which enjoy a fair amount of federaldecentralization.
The current political leaders are Muhammad V of Kelantan,Paramount ruler and Mohamed Najib Abdul Razak the current prime minister.When company wants to build up, they must formulateand implement the strategies the political arena that give a huge impact uponthe business and the spending power of consumer and businesses. In addition,the company need to concern about how stable is the political environment,influence of policies, laws that regulate or tax your business.
Other thanthat, they also need to know the government’s position on marketing ethics,government’s policy on the economy, government view on culture and religion. Onthe other hand, government must encourage local and foreign investors to investtheir money to develop tourism products and liberate taxes.Moreover, infrastructure facilities are important tothe growth of the tourism industry. Government has the responsibility todevelop and maintain the infrastructure and educated workforce in internationalstandards is also important to give good and satisfactory service to thecustomers because government has make rules and regulations to standardize. Otherwise, changing in government party can directlygive the impact to any industry in the country their policies will affect torun the business. In this case, the tourist will waste their time and give badimage to the hotels because when the government strict their security policiesit highly impact to the hotels.In 2017, there is the implementation of the tourismtax (TTx) that begin on August 1 as announce by Customs Department.
The taxwill be charge at the specific rate on tourist staying at any accommodationpremises provided by an operator of the said accommodation premises. Touristaccommodation will be registered by the Commissioner under subsection 31C (1)Tourist Industry Act 1992. According to the announcement, the tax rate will beRM 20 per room per night for five-star hotel, RM 10 per room per night for fourstars, RM 5 per room per night for one, two and three star, RM 2.50 per roomper night for one, two and three Orchid and non-rated accommodation premises.