Malaysia

Sabah to enforce revised hotel license fees despite objections

Hotel operators say the hike is too steep, but government defends move as fair and long overdue

Updated 1 year ago · Published on 16 Apr 2025 11:53AM

Sabah to enforce revised hotel license fees despite objections
Madingkir cited other states as benchmarks, saying Penang charges RM5 for 4-star and above hotels - April 16, 2025

by Jason Santos

DESPITE opposition calls for a delay, Sabah will go ahead with the revised hotel licensing fees, maintaining that the new rates are modest and among the lowest in the country.

Assistant Minister in the Chief Minister’s Department Datuk Abidin Madingkir defended the policy amid repeated calls for a deferment.

“The license fees imposed on hoteliers are not high,” Madingkir said in response to a supplementary question.

“If you compare it to night market hawkers paying RM3 per lot, hotel fees are lower: RM4.65 for Class 1, RM2.65 for Class 2, and RM1.30 for Class 3 per occupied room per day.”

There were arguments that budget hotels were facing a steep jump from an annual flat rate of RM1,000 to more than RM28,000 under the new formula based on occupancy rates.

“Given the rising costs of doing business—from the new minimum wage to e-invoicing requirements—this is too drastic,” said the Opposition.

But Madingkir stood firm.

“These hotel license fees have remained low for 35 years. Hotels were paying just RM10 per room per year—barely RM0.27 a month. It’s time we return to the structure laid out in the by-laws,” he said.

He added that stakeholder consultations were held twice between Kota Kinabalu City Hall (DBKK) and the Sabah Hotel Association.

“They requested a delay and a lower fee cap of RM45. We did not agree.

“But we accepted their suggestion that Airbnb operators should also be subject to licensing. Notices have already been issued,” he said.

Madingkir cited other states as benchmarks, saying Penang charges RM5 for 4-star and above hotels, and Melaka between RM3 and RM5.

“Kota Kinabalu’s fees are still the lowest in Malaysia.”

He also clarified that the fee is only charged on occupied rooms and that hotels are required to declare monthly occupancy.

“If there’s no occupancy, no fee is charged.

“With tourists returning—especially from China—hotels are making money. So, it’s only fair that some of that revenue goes to DBKK to improve service delivery.”

Separately, Sulabayan assemblyman Datuk Jaujan Sambakong raised concerns about resort operators in Semporna charging foreign tourists RM1,500 per head for packages booked overseas, with no local revenue recorded.

“I’ve been told the payments are made abroad. What is the government doing to make sure the state gets its share?” he asked.

Madingkir acknowledged the issue and said he had raised similar concerns while in the opposition.

“If bookings and payments are happening outside Sabah, then we are losing out. I urge the Honourable Member to share the details so action can be taken,” he said. - April 16, 2025

Related News

Malaysia / 14h

Syed Saddiq warns Tabung Haji bailout burden could fall on future generations

Malaysia / 1d

Sabah and Sarawak can become 'kingmakers', determine who will lead Federal government

Malaysia / 2d

Warisan keeps Sabah pact talks open, pushes for local parties to contest 25 seats

Malaysia / 2w

‘No time to entertain opposition’s political attacks or allegations’ – Aminuddin

Malaysia / 3w

Sabah does not agree to 200-litre diesel quota, forms special committee - Masidi

Malaysia / 3w

Bersatu now sole opposition party - Muhyiddin

Spotlight

Malaysia

Sarawak schools told to halt outdoor activities as haze pushes air quality into unhealthy range

World

Indonesia haze forces schools to close as wildfires intensify amid severe dry season

Malaysia

PN walkout over Tabung Haji debate a political misstep, says analyst

By Alfian Z.M. Tahir

Malaysia

51 witnesses to testify at inquest into death of 10-year-old boy found unconscious in school toilet

Malaysia

Female student arrested for allegedly hurting classmate with kerambit at school

World

Colombia quake death toll hits 111 as rescue teams race to find survivors

World

Trump secretly switched to third aircraft in Türkiye over Iran assassination threat

Malaysia

Anwar questions PN’s priorities after Tabung Haji RCI walkout

Malaysia

MACC, police probing TH after RCI findings as govt warns no one will be spared

By Alfian Z.M. Tahir

You may be interested

Malaysia

UPKO entry strengthens Sabah’s political stability, development agenda

Malaysia

Malaysia unveils RM4.3 billion renewable energy pipeline as ISES 2026 opens

Malaysia

Penang STEM pilot targets 100,000 students as Malaysia builds pipeline for high-value industries

Malaysia

PAS reaches out to UMNO as PN eyes Melaka talks

Malaysia

Rafizi’s wife says no update nearly a year after son’s alleged syringe attack

By Alfian Z.M. Tahir

Malaysia

Sarawak schools told to halt outdoor activities as haze pushes air quality into unhealthy range

Malaysia

Penang: Good progress seen in two major projects in the state

By Ian McIntyre

Malaysia

Sabah and Sarawak can become 'kingmakers', determine who will lead Federal government