KOTA KINABALU: The Sabah Tourism, Culture, and Environment Ministry is working to address concerns over high hotel licensing fees in the state capital, which industry players say could severely impact business sustainability.
Minister Datuk Seri Christina Liew acknowledged the financial strain on hoteliers, particularly three-star establishments, and emphasized the need for a balanced solution.
“I have raised this issue with the state cabinet, and after discussions, the decision was made to maintain the current fees,” she said. “However, we will reassess the situation in six months to evaluate its impact.”
In the meantime, Liew plans to engage with Kota Kinabalu City Hall (DBKK) and hotel associations to explore possible alternatives.
The issue arose following the reinstatement of hotel licensing rates under the Hotel & Lodging Houses By-Laws 1966, leading to a significant increase in operational costs. Previously, hotels paid a licensing fee of RM10 per room annually. Under the revised structure, fees are now charged per occupied room each month, based on DBKK’s classification of hotels into first, second, and third classes.
DBKK has defended the move, stating that the fees help cover essential city services and maintain Kota Kinabalu’s appeal as a leading tourist destination. The local authority also noted that hotel operators could incorporate these costs into their annual tax filings.
New Tourism Projects to Boost Visitor Numbers
In a related development, Liew announced that new tourism projects in Kudat and Sabah Wetlands will be introduced this month to attract more visitors to the state.
Sabah has set a target of 3.3 million tourist arrivals for 2024, with 303,614 visitors recorded in January alone. Last year, the state welcomed 3.15 million tourists, including 1.2 million international visitors.
Additionally, the Sabah Tourism Board reported that hotel occupancy rates for three-star hotels and above surpassed 50% in 2023, indicating strong demand despite industry challenges.
