Crack down on illegal lodgings

17 Aug 2026 • 10:31 AM MYT
Daily Express
Daily Express

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Crack down on illegal lodgings

Kota Kinabalu: The Malaysia Budget & Business Hotel Association (MyBHA) called for stronger monitoring and enforcement against illegal and unregulated accommodation operators in Sabah to protect legitimate businesses, tourists and the State’s tourism reputation.

MyBHA National President Dr Seri Ganesh Michiel said authorities must ensure only accommodation businesses complying with licensing, safety and regulatory requirements were allowed to operate and promoted.

The call followed a courtesy visit by MyBHA on Sabah Tourism, Culture and Environment Minister Datuk Jafry Ariffin, also attended by the ministry’s Permanent Secretary, Datuk Josie Lai.

The association said Sabah’s rapid tourism growth, including rising visitor arrivals, investments and new forms of accommodation, could also increase the risk of illegal and unregulated activities, including unlicensed accommodation operators and other tourism-related businesses operating outside the legal and regulatory framework.

It cautioned that such gaps could also be exploited by foreign individuals or entities seeking to conduct business without the necessary licences, approvals or compliance with local laws.

“Proper monitoring and enforcement are essential to protect legitimate businesses, employees, tourists, investors and the destination itself,” Ganesh said.

He said there must be a level playing field for operators who invested in licences, safety requirements, employees, taxes and regulatory compliance.

“Local councils, KePKAS, Motac, Tourism Malaysia, enforcement agencies and recognised industry associations must communicate and work together. Industry monitoring cannot be done in isolation.

MyBHA also called for greater unity among accommodation operators, saying a stronger industry voice would allow businesses to share information and engage authorities more effectively on policies, challenges and opportunities.

He urged operators to take a more proactive approach instead of waiting for problems to arise.

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