Tourism Minister advises against indiscriminate hotel rate hikes

Abdul Karim (fourth left) along with Gerald (second left) and Snowdan (third left) welcoming guests to the Ministry's Raya open house in PCC on April 18, 2024.
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By Karen Bong

KUCHING, April 18: Hotels should not increase their room rates indiscriminately as it would impact tourist arrivals and the broader tourism sector in Sarawak.

Minister of Tourism, Creative Industry and Performing Arts Dato Sri Abdul Karim Rahman Hamzah stressed the necessity for consensus among hotel operators before implementing any rate adjustments, including those within the budget hotel segment.

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“There is the Malaysian Association of Hotels and I also believe there is a group or association managing the budget hotels.

“But any decision to increase hotel rates must be referred to the top first,” he said when met at his Ministry’s Hari Raya Aidilfitri open house at Penview Convention Centre (PCC), Jalan Bako here today.

He made these remarks in response to news reports where the Malaysian Budget and Business Hotel Association (MyBHA) warned that budget hotel owners are likely to hike up their rates by between 30 to 40 per cent over the next three months due to multiple factors resulting in rising operational costs.

Clarifying that he had not been informed about the matter by hoteliers in Sarawak, Abdul Karim however emphasised that hotel room rates cannot keep on increasing if price adjustments had been done in recent years.

“If I am not mistaken, I think there have been an increase (in hotel rates) last year.

“Whether if it is Hilton or Sheraton or other hotels, there have been a slight increase but it is still manageable as the room rates in Sarawak are considered affordable and low,” he added.

On April 15, MyBHA president Sri Ganesh Michiel said if the hoteliers do not adjust their rates, they might as well cease business.

Ganesh explained that rates would not go up drastically but hoteliers had to adjust their operational costs based on the rates of utilities, laundry, software use, maintenance and consideration that sales and service tax (SST) has been increased from six to eight per cent.

Abdul Karim’s wife Datin Sri Zuraini Abdul Jabbar, Deputy Minister of Creative Industry and Performing Arts Datuk Snowdan Lawan and Deputy Minister of Youth, Sport Development Dato Gerald Rentap Jabu were among those present. — DayakDaily

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