No rate increases if ‘threats’ removed, say Sarawak budget hotels
Published on: Sunday, April 21, 2024
By: FMT
The Malaysian Budget and Business Hotel Association said Sarawak budget hotels have no intention of indiscriminately raising their rates. (Facebook pic)
PETALING JAYA: The Malaysian Budget and Business Hotel Association (MyBHA) said Sarawak budget hotels will only raise their rates if nothing is done to resolve threats to the industry in the state.
Its president, Sri Ganesh Michiel, said the association’s members have no intention of indiscriminately raising their rates.
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“We appeal to Abdul Karim Rahman Hamzah, Sarawak’s tourism, creative industry and performing arts minister, and the relevant authorities to immediately assist budget hotel entrepreneurs or operators especially in the state, in ensuring the sustainability of their businesses,” he said in a statement last night.
Ganesh was responding to Karim’s warning two days ago against budget hotel operators raising their rates indiscriminately, saying it could be detrimental to the efforts to revive the industry.
MyBHA had previously warned of 30% to 40% rate hikes over the next three months because of various factors that impacted operational costs.
Ganesh said some of the threats the budget hotel operators faced in Sarawak included the failure to regulate online travel agencies and short-term rental accommodation (STRA).
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He said STRAs operated without valid business licences.
Ganesh also said no action had been taken against unlicensed accommodation providers, which affected licensed operators.
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He said these issues had been highlighted at the AGM of the association’s Sarawak chapter on April 18.
“We continue to support the state government’s ambition to attract a high volume of tourists, but the government must ensure that the beneficiaries of tourist arrivals are registered and licensed tourism or hospitality industry entrepreneurs,” he said.
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