Hoteliers seek minister’s help over new fee

KOTA KINABALU (Jan 16): The Malaysian Association of Hotels (MAH), Sabah/Labuan Chapter aired their grievances to Tourism, Culture and Environment Minister Datuk Seri Christina Liew over the restructuring of hotel accommodation and Lodging Act 1966 fees beginning January this year, and its implications on the hotel sector.

A delegation led by MAH Sabah/Labuan Chapter chairman Hafizan Wong met the minister and sought her assistance in facilitating discussions with Kota Kinabalu City Hall (DBKK) over the new proposed hotel licence fee structure.

Expressing their dissatisfaction, the hoteliers urged the minister to liaise with the Mayor of Kota Kinabalu over the case at hand.

According to Wong, previously, hotel operators were required to pay a licensing fee of only RM10 per room per annum. Under the new fee structure, they now have to pay rates per occupied room per month, based on DBKK’s hotel classification category of first, second and third class, he pointed out, citing increased cost burden and economic impact.

“Such a steep increase in costs may force some of us to reduce our services, lay off staff, or, in extreme cases, cease operations,” Wong lamented.

Also present were the Ministry’s Permanent Secretary Datuk Josie Lai, Deputy Permanent Secretary I Mary Malangking, Chairman of Malaysia Budget Hotel Association (MyBHA), Sabah Chapter, Deputy Chairman of Sabah Hotels Association (SHA) Felix Joikon, and Exco members of MAH and MyBHA.

MyBHA Sabah Chapter has also found the proposal to increase the license fees as ridiculous and unacceptable.

DBKK invited MyBHA Sabah Chapter, MAH Sabah Chapter and SHA in October 2024 for engagement sessions regarding proposed changes to licensing fees under the Hotel & Lodging Act 1966.

Following these sessions, MyBHA, MAH and SHA convened to address the substantial fee increases, which, for some operators, amount to an unprecedented rise of up to 10,000%. This hike is deemed excessive and unsustainable, especially in the context of ongoing business recovery challenges, rising operational costs, and persistent unfair competition.

In response, the three associations have sent a joint letter to DBKK but have yet to receive a response. They are calling for intervention by the State Cabinet to ensure fair governance and a more conducive business environment in 2025.

-Agency