Sunway CEO: tax rate stifling theme park industry growth in Malaysia
One of Malaysia’s top theme park operators says a crippling tax burden is heavily impacting operational performance across the industry.
Sunway Group, operator of Sunway Lagoon near Kuala Lumpur, says the 25% entertainment tax and other government imposed charges are damaging the industry.
The 25% entertainment tax was expanded to include theme parks in 2014.
"Theme parks are capital-intensive investments where returns on investment typically go through a long gestation period before it breaks even, or becomes profitable. In addition to the 25% entertainment tax, there is also the 6% Goods and Services Tax. Altogether, a 31% tax effectively means close to a third of the ticket price is taken off," said CEO Chan Hoi Choy.
The ‘archaic’ tax burden forced Sunway to shelve plans for a new theme park at its Sunway Iskandar development in southern Malaysia.
"We are appealing to the government to repeal the entertainment levy and give incentives on corporate tax," he told the Malaysia Reserve.
The company also operates Sunway Lost World of Tambun in Ipoh, Malaysia.
Chan said the tax structure is stifling Malaysia’s goal in becoming the theme park capital of Southeast Asia.
The country has seen a boom in recent times and has nearly doubled the number of theme park attractions in the last five years.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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