The Malaysia Budget & Business Hotel Association (MyBHA) is urging Dewan Bandaraya Kota Kinabalu (DBKK) to take immediate and balanced action in addressing two critical issues affecting the tourism and hospitality sector – the excessively high hotel licensing fees and the lack of enforcement on illegal Short-Term Residential Accommodation (STRA) operators.
Currently, licensed hotel operators are subject to hefty licensing costs, mandatory inspections, and strict compliance requirements.
However, many unlicensed STRA operators continue to function without regulation undermining the industry, evading local taxes and jeopardising tourist safety.
“It is unacceptable that while licensed hoteliers pay high fees and comply with safety regulations, illegal STRA operators are allowed to operate unchecked. This creates an unfair and unsafe tourism environment, not only for businesses but for the tourists themselves,” Dr Sri Ganesh, National President, MyBHA®
“These unregulated STRA units, frequently listed on popular digital platforms, often lack basic fire safety, security and emergency protocols. Tourists may unknowingly book unsafe accommodations, and in the event of incidents, there is little accountability,” he said.
To address these concerns, MyBHA calls on DBKK to:
• 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. 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;
• 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 so 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.
“Sabah’s tourism potential is immense but it must be supported by a regulatory framework that upholds safety, fairness, and quality, Every cent collected through licensing should be accounted for and channelled back into tourism infrastructure, safety, and promotion.” said Harold Chung, Chairman of MyBHA® Sabah.
MyBHA would also like to congratulate the Sabah Tourism Board, United Nations Development Programme (UNDP), Tourism Productivity Nexus (TPN), Malaysia Productivity Corporation (MPC) and all involved for the successful organisation of the Community-Based Tourism (CBT) Conference & Expo 2025, held on 28–29 June at Suria Sabah Shopping Mall.
With the theme “Building Resilient and Sustainable Communities that Innovate and Transform Tourism,” the event was a powerful showcase of how local communities can drive meaningful change in the tourism sector. As Sabah
including Kota Kinabalu continues to position itself as a leading tourism destination, DBKK is encouraged to recognise and support the diversity of tourism sectors including CBT, urban tourism, and licensed budget accommodation through inclusive policies that ensure growth, safety, and
sustainability for all.
MyBHA reaffirms its commitment to working collaboratively with DBKK and other agencies to create a vibrant, regulated, and competitive tourism industry where tourists feel safe, and operators feel fairly treated.
Source – MyBHA