The government's proposal to impose a Tourism Services Fee for hotels is necessary in order to generate funds needed to promote Malaysia, said Tourism and Culture Minister Nazri Abdul Aziz.

He said this is to make up for cuts in the ministry's promotion budget, following the drop in oil and gas revenues for the government.

"The cabinet thought of how we can find money for tourism promotion... This is to cover the budget cuts," Nazri told Malaysiakini.

Nazri was responding to negative reactions to the cabinet proposal, which would see an addition of between RM5 to RM30 to hotel booking fees.

Sabah Tourism Minister Masid Manjun was quoted by Bernama as saying that it was not the right time to implement such fees.

Other industry players have said that it would have a negative impact on tourism.

Nazri, however, said the imposition of the fee was not final.

"Don't jump the gun... This is just a proposal from us. Maybe they can say 'please tell the government RM30 is too much, please make it RM15'.

"I just needed a figure to work with when engaging with them, so don't get too excited, relax!"

He added this does not take away power from local councils and states to impose their own fees on hotels.

Nazri also clarified his remarks that Sabah and Sarawak would not get his ministry's assistance if they choose not to impose the Tourism Services Fee.

"It's not fair for me to only collect (the fees) from the peninsula, but then use that money to promote Sabah and Sarawak.

"This is only for promotion. It will not affect development spending as that comes from many different ministries," he said.

Nazri added that the tax is being implemented in other countries too, just under different names, such as "city tax" or "heritage tax", all of which would be used to promote tourism.