KOTA KINABALU: There is a need to balance economic growth with environmental responsibility as the hotel industry expands and sustainability becomes increasingly important.
Tourism, Culture and Environment Minister Datuk Seri Christina Liew, however, noted that hotel operators are generally agreeable to this consideration.
Speaking to the media at the Ministry's Chinese New Year gathering with the media on Thursday (Jan 16), she highlighted concerns from hotel operators regarding Kota Kinabalu City Hall's (DBKK) decision to reinstate the hotel licence fee under the Hotel & Lodging Houses By-Laws 1966.
The hotel licence fee, which took effect on Jan 1 as approved by the state government, introduces a revised system based on occupancy and hotel classification categories.
"I acknowledge their concerns about the financial burden and assure that discussions will be held with DBKK to address the issue," said Liew.
While further encouraging hotels to propose alternative solutions instead of simply opposing the new rates, she added that the hotels have responded with a counter-proposal for a staggered fee structure and DBKK is open to considering it.
In a statement on Thursday (Jan 16), DBKK explained that the licence fee is an operational cost for hotels and can be included when declaring annual income tax.
"Proceeds from the fees will fund city services, ensuring Kota Kinabalu remains a vibrant destination for both domestic and international tourists," the statement read.
DBKK further clarified that the licence fees are now calculated based on a formula outlined in the By-laws – RM4.65 per room per day for Class 1 hotels, RM2.65 for Class 2 and RM1.30 for Class 3, while no fees will be charged for unoccupied rooms.
To streamline the process, DBKK issued comprehensive Hotel Licence Application and Renewal Guidelines, outlining application requirements, required documents, fee calculations, and procedures.
Operators can also utilise the online system on the DBKK eServices portal to calculate and pay fees, making compliance more convenient.
Before reintroducing the fees, DBKK held two engagement sessions in October 2024, chaired by Mayor Datuk Seri Dr Sabin Samitah, to explain the fee structure and gather feedback from industry stakeholders.
"As of Jan 15, over 50% of hotel operators, amounting to 99 establishments, have settled their hotel and lodging house licence fees for January 2025."
In response to concerns raised by hotel associations about Short Term Rental Accommodation (STRA), DBKK has implemented specific guidelines to regulate such activities, effective Jan 2, 2025, under the same By-laws as hotel licensing.
On this issue, the Malaysian Association of Hotels (MAH) Sabah/Labuan Chapter has expressed concerns over the financial burden posed by the new structure.
Operators, who previously paid RM10 per room annually, now face monthly fees based on occupancy and hotel classification.
MAH Sabah/Labuan chairman Hafizan Wong highlighted the strain this imposes on operators, noting that increased costs may lead to service reductions, staff layoffs, or, in extreme cases, closures.
He appealed for reconsideration, stating, "This steep increase in costs could force us to make difficult decisions that impact our operations and workforce."
