KOTA KINABALU, Jan 16 — The Kota Kinabalu City Hall (DBKK) has reinstated the original rate of licence fees under the Kota Kinabalu City (Hotel & Lodging Houses) By-laws 1966, effective January 1 this year, with the approval of the state government.

A DBKK spokesperson said the calculation of the hotel and lodging licence fees is based on the formula stated in the said By-law, by taking into account the hotel classification category and occupancy rate.

He said the actual fee charged for each occupied hotel room is RM4.65 per room/day for Class 1, RM2.65 per room/day for Class 2, and RM1.30 per room/day for Class 3.

No fee will be charged on unoccupied rooms.

"DBKK must enforce any laws or regulations as stipulated in the laws applicable in the Kota Kinabalu City area. This includes collecting licence fees.

"The proceeds from the license fee collection will be used to cover the cost of delivering various services around the city area, thus ensuring that Kota Kinabalu City continues to be an attraction for more domestic and international tourists.

"It is also emphasised that the payment of this hotel licence fee is one of the hotel business’ operating costs and can be taken into account in the process of declaring the annual income tax return of hotel operators,” the spokesperson said in a statement today.

To smoothen the process of collecting this hotel licence fee, the DBKK Hotel Licence Application and Renewal Guidelines have been established to explain in detail the application requirements, required documents, calculation methods, and implementation of hotel licence fees for the convenience of hotel operators.

In addition, the local authority has also created an occupancy form filling system on the DBKK eServices website to make it easier for hotel operators to make calculations and payments online.

Previously, before the license fee rates under the (Hotel & Lodging Houses) By-laws 1966 were re-enforced, DBKK held two management engagement sessions chaired by Mayor Datuk Seri Dr Sabin Samitah on Oct 1 and 29 last year.

The spokesperson said the engagement sessions held with hotel and lodging industry operators served as a platform to explain the implementation mechanism of the above By-law in addition to hearing feedback from industry players.

"Regarding the issue of Short Term Rental Accommodation (STRA) raised by hotel associations, DBKK has actually taken steps by creating specific guidelines for Short Term Rental Accommodation (STRA) to regulate this activity, which has been enforced since January 2 this year, which is also subject to the Kota Kinabalu City (Hotel & Lodging Houses) By-laws 1966.

"DBKK would like to thank hotel operators who have carried out their responsibilities. As of January 15, more than 50 per cent of hotel operators, specifically 99 of them, have paid their hotel and lodging licence fees for the month of January 2025,” he said.

Recently, the Malaysian Association of Hotels (MAH) Sabah/Labuan Chapter aired their grievances to Sabah Tourism, Culture and Environment (KePKAS) Minister Datuk Seri Christina Liew over the restructuring of hotel accommodation and Lodging Act 1966 fees beginning January this year and its implications on the hotel sector.

MAH Sabah/Labuan Chapter chairman Hafizan Wong said that hotel operators were previously required to pay a licensing fee of only RM10 per room per annum, but under the new fee structure, they now have to pay rates per occupied room per month, based on DBKK’s hotel classification category of first, second, and third class.

Wong pointed out that this situation causes increased the cost burden and economic impact on the operators, lamenting that "such a steep increase in costs may force some of us to reduce our services, lay off staff, or, in extreme cases, cease operations”. — The Borneo Post