The Sabah government will push ahead with the implementation of revised hotel licensing fees, maintaining that the new rates are modest and remain among the lowest in the country, despite opposition calls for a delay.

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 Wong’s 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.”

Wong had earlier argued 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.”

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