Genting Malaysia plans to review its marketing expenditure and cost structure to mitigate the impact of the tax increases indicated in the latest Budget 2019, the company said in a Bursa filing.
According to Finance Minister Lim Guan Eng, taxes, fees and levy on the gaming industry have not increased since 2005. As such, the casino license will be increased from RM120 million to RM150 million per annum, while the percentage for casino duties increased up to 35% on nett collection. The amendments will take effect from 1 January 2019. Genting Malaysia said in the filing that it is assessing the full implications of the additional taxes and will take the appropriate next course of action.
A+M has reached out to Genting Malaysia for more information about the marketing expenditure review.
According to Genting Malaysia's financial statement for its second quarter, the company said it will continue to focus on expanding into regional markets by enhancing its digital marketing efforts to improve customer reach and attract foreign visitations to the resort. It also remains focused on the development of the Genting Integrated Tourism Plan (GITP) at Resorts World Genting, with preopening activities continue to ramp up as it prepares for the roll out of the Skytropolis indoor theme park and the 20th Century Fox World Theme Park.
Last year, Resorts World Genting rebranded its Theme Park Hotel to Hotel on the Park with a new concept “All you see is not all you get”. This move follows the construction of the world’s first Twentieth Century Fox World theme park nearby. Meanwhile, the company also collaborated with CIMB Bank in 2017 to introduce Alipay at Resorts World Genting, mainly targeting Chinese visitors. This made it the first hospitality merchant in Malaysia to introduce Alipay.
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