KOTA KINABALU: Hoteliers in Sabah are urging lawmakers to reconsider the new hotel licensing fees, which have significantly increased operational costs and threaten the viability of hotel businesses.

Hafizan Wong, Chairman of the Malaysian Association of Hotels (MAH) Sabah and Labuan Chapter, said the new fees under the Hotel and Lodging Houses By-Laws 1966 are putting pressure on hotels, from budget to five-star establishments. Previously, the fee was RM10 per room annually, but now, hotels are charged based on occupancy, leading to sharp increases. For example, a 100-room hotel with 60% occupancy would face RM57,600 annually, up from RM1,000 previously.

Hafizan called for a balanced approach, emphasizing that unregulated Short-Term Rental Accommodations (STRA) should also be held to the same standards. MAH President Christina Toh added that licensed hotels should not bear the financial burden alone, as it could lead to higher room rates, job losses, and a negative impact on the tourism sector.

Both leaders urged the authorities to suspend the fee increase until further consultation with stakeholders, review the licensing structure, and enforce regulations on unlicensed accommodations.