Tourists visited Bayon temple. The government on Monday unveiled an emergency tax moratorium of four months for hotels and guesthouses in Siem Reap province. Hin Pisei
With the coronavirus outbreak severely impacting the tourism industry around the world, the government on Monday unveiled an emergency tax moratorium of four months for hotels and guesthouses in Siem Reap province.
Prime Minister Hun Sen said on Monday at a meeting in the Peace Palace that the tourism sector is currently suffering the most from the spread of the virus because tourists are afraid of travelling and flights are being cancelled.
“In this context, the government will help enterprises and companies affected by the crisis,” he said.
He added that in order to aid hotels and guesthouses in Siem Reap province, the government will not impose tax for a four-month period from February to May.
“We will give the tax holiday for all kinds of taxes for hotels and guesthouses registered with the General Department of Taxation and operating in Siem Reap province for a period of four months from February to May 2020,” he said.
The hotels and guesthouses are still obliged to file a tax return and use the online system to manage VAT every month during the tax exemption period, he noted.
“The tax exemption here means that the state is subject to pay tax instead,” he said.
Kan Chansathya, general manager of Lynnaya Urban River Resort & Spa, said that the prime minister’s announcement was crucial for helping hotels and guesthouses in the province facing a loss of revenue.
All hotels and guesthouses in Siem Reap province are experiencing declining numbers of visitors, especially since the outbreak of Covid-19, he said.
In fact, his hotel, which in the same period last year had an occupancy rate of between 80 and 90 per cent, is now only about 50 per cent full, he said.
“I’m happy about this news, but the four-month tax exemption may be a little short so if the government can extend the tax exemption to at least the end of October, which is the high season, it would be even better,” he said.
President at Cambodia Association of Travel Agents Chhay Sivlin said she was pleased with the government’s move.
“This action by the government will contribute to helping hotels and guesthouses in Siem Reap province survive,” she said.
Ngov Sengkak, director of Siem Reap provincial tourism department, could not be reached for comment.
According to Hun Sen, since the beginning of February, the number of tourists visiting Cambodia has fallen by more than 60 per cent, especially Chinese tourists, down by 90 per cent.
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