In Malaysia, it is federal state with constitutional
elective monarchy. It also has 13 states which enjoy a fair amount of federal
decentralization. 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 formulate
and implement the strategies the political arena that give a huge impact upon
the 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 than
that, they also need to know the government’s position on marketing ethics,
government’s policy on the economy, government view on culture and religion. On
the other hand, government must encourage local and foreign investors to invest
their money to develop tourism products and liberate taxes.
Moreover, infrastructure facilities are important to
the growth of the tourism industry. Government has the responsibility to
develop and maintain the infrastructure and educated workforce in international
standards is also important to give good and satisfactory service to the
customers because government has make rules and regulations to standardize.
Otherwise, changing in government party can directly
give the impact to any industry in the country their policies will affect to
run the business. In this case, the tourist will waste their time and give bad
image to the hotels because when the government strict their security policies
it highly impact to the hotels.
In 2017, there is the implementation of the tourism
tax (TTx) that begin on August 1 as announce by Customs Department. The tax
will be charge at the specific rate on tourist staying at any accommodation
premises provided by an operator of the said accommodation premises. Tourist
accommodation will be registered by the Commissioner under subsection 31C (1)
Tourist Industry Act 1992. According to the announcement, the tax rate will be
RM 20 per room per night for five-star hotel, RM 10 per room per night for four
stars, RM 5 per room per night for one, two and three star, RM 2.50 per room
per night for one, two and three Orchid and non-rated accommodation premises.