KOTA KINABALU: Dewan Bandaraya Kota Kinabalu (DBKK) Mayor Datuk Seri Dr Sabin Samitah has urged hotels in the city to contribute fairly towards city maintenance.
He said that the previous annual rate of RM10 per room, which has been in place since 1989, is outdated and inadequate.
DBKK reinstated the original hotel licensing fees under the Kota Kinabalu City (Hotel & Lodging Houses) By-laws 1966, effective January 1, 2025, with charges applied only to occupied rooms.
The rates are RM4.65, RM2.65, and RM1.30 per occupied room per day for Class 1, Class 2, and Class 3 hotels, respectively, while unoccupied rooms are exempt.
"This rate has been in place since 1966. Then, in 1989, the government did not cancel the rate. It was just that, at the time, the economic situation was not good.
“There were very few tourists, so the government provided assistance to the hotel industry. They only had to pay RM10 per year," he said.
Sabin added that when hawkers are diligently paying RM3 per day, he questioned hoteliers’ reluctance in obliging the reinstatement of the fee despite there being an increased number of tourists that bring in bigger revenues for the latter.
Last year, Sabah surpassed 3 million tourist arrivals as compared to only 500,000 in 2000.
Typical hotel rates in Kota Kinabalu range from as low as RM32 per night for budget stays to over RM1,400 for luxury resorts, with mid-range hotels averaging around RM129 and high-end options between RM176 and RM462 per night.
"We all know that the number of tourists here is high, and hotels are in high demand. Yet, they refuse to help the government by paying the rate that was set in 1966."
“Their payment depends on whether they have customers. If there are no guests for the night, they don’t have to pay anything.
“But for hawkers, whether they open or not, they still have to pay every month."
The Malaysia Budget & Business Hotel Association (MyBHA) had said the decision to reinstate the 1966 licensing rates under the Kota Kinabalu Municipal Council (Hotel and Lodging Houses) By-laws, is deemed highly unreasonable.
MyBHA argued that the recent move to revert to the 1966 rates, which range from RM40 to RM140 per room per month, has created an unsustainable financial strain on hotel operators, could cause job losses and reduce affordable accommodation options for travelers.
There are a total of 184 hotels in Kota Kinabalu, comprising 9 first-class hotels, 32 second-class hotels, and 143 third-class hotels, with one hotel under renovation and another not in operation.
Sabin added that DBKK requires additional funding to maintain city cleanliness and infrastructure.
"We have an agreement with them, and we hope they will help Dewan Bandaraya Kota Kinabalu (DBKK) because we truly need funds for city cleaning.
“Now, the amount of waste is much higher compared to the 1960s, 70s, and 80s, right? We need to pay for electricity bills, beautify public areas, and repair pavements.
"We truly need more funds to finance cleaning projects, pay electricity bills, and even clean the sea and rivers. You can see that the sea is now much cleaner, right?
“If the sea is not clean because we don’t have enough funds, over time, tourists won’t come here anymore—not just from Peninsular Malaysia but also from overseas. If they see the area in poor condition, they will avoid it."
The local authority had also said that hotel licensing fees are part of the hotel business's operating costs and can be factored into the annual income tax declaration process for hotel operators.
Meanwhile, the Sabah Tourism, Culture and Environment minister Datuk Seri Christina Liew said she had brought the issue to the state cabinet meeting.
“After discussions, the cabinet has decided to maintain the fees. However, after six months, we will review the situation to assess the impact.”
Tags: Sabah, hoteliers, exorbitant fee, news, nst online, New Straits Times, Sabah gov, hotel licensing fees, tourism, hospitality industry, Christina Liew, Sabah hotels
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