GEORGE TOWN, June 14 — The Penang government will maintain the existing charge on hotel stays in the state when Putrajaya implements its new tourism tax next month.

Penang Chief Minister Lim Guan Eng said the fee was still needed to fund promotional activities for the state.

"The sum collected was used to promote tourism in Penang and it has seen success because the number of tourists have increased drastically,” he said in a press conference at his office this morning.

The Bagan MP also disputed claims that the cessation of existing hotel fees in Penang, Melaka, Langkawi and Kota Baru was raised when the Tourism Tax Act was debated in Parliament

Lim further said the Tourism and Culture Ministry did not convey this to his administration.

"This is something new, I’ve not heard about this, when debating the Bill, I do not recall this being mentioned,” he said, adding that he will wait for an official notice from the ministry.

Penang currently charges a fee of between RM2 and RM3 per room night through its local councils.

Lim reiterated that most states are seeking reassurances from the ministry that the money collected from tourism tax be channelled back to the respective states.

The tax will be introduced on July 1 at a rate of between RM2.50 and RM25 per room right at hotels in the country.