KOTA KINABALU: Sabah will proceed with its revised hotel licensing fees despite calls for a deferment, insisting the new rates are modest and among the lowest in the country.
Assistant Minister to the Chief Minister Datuk Abidin Madingkir of Gabungan Rakyat Sabah (GRS-Paginatan) said the revision, enforced under the Kota Kinabalu City By-Laws 1966, ensures uniform implementation and streamlines fee collection by Kota Kinabalu City Hall (DBKK).
Responding during the State Assembly's question-and-answer session on Wednesday, Abidin said the charges are fair and relatively low.
“If you compare it to night market hawkers who pay RM3 per lot daily, the hotel licensing fees are still lower—RM4.65 for Class 1, RM2.65 for Class 2, and RM1.30 for Class 3 per occupied room per day,” he said.
He said that the fee only applies to rooms with guests.
“If there’s no occupancy, there’s no fee,” he added.
Abidin then added that for over 35 years, hotels paid a flat RM10 per room annually, just 27 sen a month.
“There has been no adjustment for decades. It’s time we return to the structure laid out in the by-laws,” he said.
Datuk Junz Wong (GRS-Tanjung Aru) questioned why the government was not considering a delay, noting the financial pressure on Class 2 and 3 hotels.
Opposition members pointed out that the new formula based on occupancy could cause budget hotels to see their licensing costs increase from RM1,000 a year to over RM28,000.
“Given the rising cost of doing business—from the new minimum wage to e-invoicing—this is too drastic,” Wong said.
But Abidin said the state government had no plans to defer or stagger implementation, stating that the new system ensures fairness across all hotel categories.
He confirmed engagement sessions with the Sabah Hotel Association and the state Tourism, Culture and Environment Ministry.
“They requested a delay and proposed a cap of RM45. We did not agree. But we accepted their suggestion that Airbnb operators should also be licensed. Notices have already been issued,” he said.
Abidin cited hotel fees in other states for comparison, noting that Penang charges RM5 for four-star and above hotels, while Melaka rates range from RM3 to RM5.
“Kota Kinabalu’s fees are still the lowest in Malaysia,” he said.
The issue previously made headlines in March, when the Malaysia Budget & Business Hotel Association (MyBHA) urged Kota Kinabalu City Hall to reconsider the sudden shift to an occupancy-based fee structure.
The association warned that the revised rates could lead to unpredictable operational costs, higher room prices, and even force some budget hotels to shut down.
