KOTA KINABALU, Nov 4 — The Sabah Association of Tour and Travel Agents (Satta) has urged Kota Kinabalu City Hall (DBKK) to reconsider the new hotel licence fees, describing them as excessively burdensome and detrimental to the city’s tourism growth.
Satta chairman Datuk Seri Winston Liaw said the revised rates currently imposed by DBKK are RM4.65 per room per night for Category 1 hotels, RM2.65 for Category 2 and RM1.30 for Category 3.
He said the charges apply to occupied rooms, forcing hoteliers to absorb the increased cost — which will inevitably be passed on to tourists.
“The old licence fee was only RM10 per room per annum regardless of category. Under the new structure, the increase amounts to as much as 10,000 per cent,” Liaw said in a statement.
He explained that a five-star hotel with 500 rooms operating at 60 per cent occupancy would now have to pay around RM500,000 to renew its licence, compared to only RM5,000 previously.
“Even smaller operators are struggling. A budget hotel with 50 rooms now faces an increase from RM500 to RM14,000 a year. These are unreasonable costs that could discourage hotel investment and affect tourism competitiveness,” he added.
Liaw also noted that Kota Kinabalu’s tourism sector has already been impacted by shifting travel patterns, with more direct flights now heading to Tawau and Semporna.
“This has caused a decline in tourist numbers along the west coast, including Kota Belud, Kudat, Papar, Tambunan, Keningau and Tenom,” he said.
While Tawau and Semporna have experienced a sharp rise in visitors, Liaw cautioned that inadequate infrastructure and cleanliness issues under the Semporna Municipal Council are causing dissatisfaction among tourists.
“A friend of mine who runs a bakery in Semporna told me that 90 per cent of his customers are Chinese tourists, and almost all have complained about the local conditions,” he shared.
With the state election approaching, Satta hopes the next government will review DBKK’s hotel licence policy and seek additional federal funding instead of placing further financial strain on industry players, who, Liaw said, are the ones “laying the golden eggs” for Sabah’s economy. — The Borneo Post
