The state government is holding firm on DBKK’s steep hotel licence fees, despite warnings that struggling hotels may shut down.

Tourism, Culture and Environment Minister Datuk Christina Liew admitted that hoteliers are unhappy, but the Cabinet has refused to budge.

“I brought this issue to the Cabinet, but they decided to maintain the fee structure,” she said when met by reporters in Kota Kinabalu on Sunday.

Under DBKK’s new fee structure, hotels are charged RM4.65 (Class 1), RM2.65 (Class 2), and RM1.30 (Class 3) per occupied room, per day—a massive jump from the previous RM10 per room per year.

Hotel operators have twice taken their frustrations to Liew’s office, warning that three-star hotels and smaller lodgings won’t survive.

Liew acknowledged the backlash but said the government will wait at least six months to eight months before reviewing the impact.

“If hotels are forced to close, we will present the case again,” she said. – March 9, 2025