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KOTA KINABALU: The Malaysia Budget and Business Hotel Association (MyBHA) has warned that a steep hike in hotel licensing fees in Kota Kinabalu could force widespread closures, jeopardising jobs and the city’s tourism industry.

The association has urged the State Government and the City Hall (DBKK) to intervene immediately to prevent the situation from worsening.

Previously, hotels paid a licensing fee of RM10 per room per year since 1989, but the sudden enforcement of the 1966 rates now imposes fees between RM40 and RM140 per room per month.

A 100-room second-class hotel with a 60 per cent occupancy rate would see its annual licensing fee surge from RM1,000 to RM57,600, a cost MyBHA says is unsustainable for many operators.

MyBHA National President Dr Sri Ganesh Michiel, also Malaysian Tourism Federation (MTF) Secretary General, said the new fee structure places an unbearable financial strain on hoteliers.