Hotel operators want DBKK to address two-tiered system
Published on: Tue, Jul 01, 2025 Text Size: Ganesh and Harold posing in a group photo. Kota Kinabalu: The Malaysia Budget and Business Hotel Association (MyBHA) wants Dewan Bandaraya Kota Kinabalu (DBKK) to address what it calls a two-tiered system that disadvantages legitimate hotel operators while allowing illegal accommodation providers to operate freely. The association pointed out a major unfairness in the system whereby licensed hotels have to pay hefty fees and pass regular government inspections, while unlicensed Short-Term Residential Accommodation (STRA) operators face no such costs or checks. 'It is unacceptable that while licensed hoteliers pay high fees and comply with safety regulations, illegal STRA operators are allowed to operate unchecked,' said MyBHA's National President Dr Sri Ganesh Michiel. 'This creates an unfair and unsafe tourism environment for both businesses and tourists,' he added. MyBHA said many unregulated STRA units listed on digital platforms lack basic fire safety, security and emergency protocols. The association expressed concern that tourists may unknowingly book unsafe accommodations with little recourse in case of incidents and is thus calling on DBKK to implement several measures, namely, tiered licensing structure, fee review, transparency, enhanced enforcement and public awareness. 'Review and introduce a tiered hotel licensing fee structure that includes a lower rate for budget accommodations particularly those serving domestic travellers and Sabahans visiting Kota Kinabalu,' the association said. 'This approach recognises their vital role in supporting local tourism and ensuring affordable lodging options for all segments of society. 'Reconsider the recent increase in hotel licensing fees and explore alternative models of tourism taxation such as a nominal tourist tax or bed levy paid directly by tourists upon check-in which is a more equitable approach commonly used in other global destinations. 'Ensure transparency by disclosing how licensing revenue is reinvested into tourism development and safety and deploy more tourist police in key areas to strengthen visitor confidence and handle tourist-related issues. 'Establish a dedicated enforcement unit within DBKK to clamp down on illegal STRA operators and protect consumers, launch public awareness campaigns to tourists can easily identify licensed vs unlicensed accommodations. 'Work closely with industry stakeholders, including associations like MyBHA, to co-create policies that drive equitable and sustainable tourism,' they said. Sabah MyBHA Chairman Harold Chung said every cent collected through licensing should be accounted for and channelled back into tourism infrastructure, safety and promotion. The association also praised the recent Community-Based Tourism Conference and Expo 2025, held at Suria Sabah Shopping Mall, which showcased how local communities can drive tourism innovation. MyBHA reaffirmed its commitment to working with DBKK and other agencies to create what it calls a vibrant, regulated and competitive tourism industry where tourists feel safe and operators feel fairly treated. The association represents licensed budget and business hotels under three stars throughout Malaysia and is a member of both the Malaysian Tourism Federation and the Global Sustainable Tourism Council. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
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