Kota Kinabalu: Three hotel associations in Sabah are urging the State Cabinet to intervene following a proposal to increase the licence fees by City Hall (DBKK).
This is to ensure fair governance and a more conducive business environment.
AdvertisementThe Malaysia Budget and Business Hotel Association (MyBHA) Sabah Chapter issued a statement on Monday disagreeing with the notion that the hotel business is a thriving industry.
They claim that the economic realities faced by hotels are being disregarded. Our report on Jan 6.
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MyBHA Sabah Chapter, Malaysia Association of Hotels (MAH) Sabah Chapter and Sabah Hotel Association (SHA) were invited by DBKK in October 2024 for engagement sessions regarding proposed changes to licensing fees under the Hotel and Lodging Act 1966.
Advertisement (adsbygoogle = window.adsbygoogle || []).push({});Following the 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 per cent.
This hike is deemed excessive and unsustainable, especially in the context of ongoing business recovery challenges, rising operational costs and persistent unfair competition.
Advertisement (adsbygoogle = window.adsbygoogle || []).push({});In response, the three associations have sent a joint letter to DBKK but have yet to receive a response.
During an Exco meeting held on Dec 23, 2024, MyBHA Sabah addressed this issue in detail.
Concerns were raised as some members reported being required to pay the new fees for January 2025 or risk losing their licences.
MyBHA Sabah Chapter Chairman James Ong Kim Loke said the short-term rental accommodation (STRA) issue has remained unresolved for nearly a decade, creating a competitive imbalance.
“This additional cost burdens our members and undermines our ability to compete. It could potentially drive us out of business.
“Why kill the goose that lays the golden eggs? We are already grappling with the upcoming minimum wage increase in February 2025 and the rollout of e-invoicing mid-year,” Ong said.
Also present during the discussions was Albert Shim, MyBHA Vice President for Sabah and Sarawak and Advisor to the MyBHA Sabah Chapter.
