Friday, 25 October 2013

Budget 2014 Highlight :Tourism Sector

An update for Tourism Industry during presentation Budget 2014:

  • Promoting Aviation Industry : A new air traffic management centre costing RM700m will be built at KLIA. Airports in KK, Sandakan, Miri, Sibu, Mukah, Langkawi and Kuantan will be upgraded

  • Tourism sector : Visit Malaysia Year (2014) and Year of Festivals (2015)

  • Tourism sector : Pioneer Status & Investment Tax Allowance incentives extended for another 3 years until Dec 31, 2016

  • Special Tourism Infrastructure Fund (RM2b subsidy on 2% interest rate) under Bank Pembangunan Malaysia to promote the tourism industry. The fund will provide soft loans at low interest rates between 4% and 6% with the government providing a subsidy of 2%, said Prime Minister Datuk Seri Najib Tun Razak when presenting the 2014 Budget.

"The fund will be used to finance the cost of building infrastructure such as hotels, resorts and theme parks as well as purchase and replacement of equipment related to the tourism sector," he said.
To further promote Malaysia as a preferred tourist destination, he said the government would continue to encourage investments, particularly in new four and five-star hotels.
"The measure will ensure adequate supply of international standard accommodation and increase tourist arrivals, especially from the luxury and high-spending category.
"To support this, the government proposes the application period for pioneer status and investment tax allowance incentives be extended for another three years until Dec 31, 2016," he said.
In continuous efforts to attract more tourists, Najib announced 2015 as the Year of Festivals, showcasing a variety of cultural programmes and festivals in the country.
He also announced that the government would allocate RM1.2bil for operating and investment expenditure, including for promotion and advertising, for this year and next year.
In view of the encouraging performance, 2014 has been declared Visit Malaysia Year, targeting 28 million tourists, he added.
"The tourism sector is expected to generate RM65 billion in revenue and has the potential to contribute further," he said.