Licensed hotel operators continue to face high operational costs due to strict compliance requirements, mandatory inspections, and substantial licensing fees. Meanwhile, unlicensed STRA providers continue to operate freely, often without fulfilling safety standards or contributing to local taxes—putting both businesses and tourists at risk.
“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,” said Dr Sri Ganesh, National President of MyBHA®.
Many of these illegal STRA units are actively listed on major booking platforms but lack basic safety protocols, such as fire protection and emergency procedures. As a result, tourists may inadvertently book unsafe accommodations, with limited recourse in the event of an incident.
MyBHA’s Recommendations to DBKK
To address these urgent concerns, MyBHA urges DBKK to:
- Implement a tiered licensing fee structure, with lower rates for budget hotels, especially those serving domestic travellers and local Sabahans.
- Review the recent hike in licensing fees and consider adopting alternative tourism taxes (e.g. a bed levy or nominal tourist tax) which are widely used in global destinations.
- Disclose the usage of licensing revenue to ensure transparency, particularly how funds are reinvested into tourism development and safety initiatives.
- Increase the presence of Tourist Police in key zones to boost visitor confidence and assist with tourist-related issues.
- Establish a dedicated enforcement unit within DBKK to regulate and shut down illegal STRA operators.
- Launch public awareness campaigns to help tourists identify licensed vs unlicensed accommodations more easily.
- Engage actively with stakeholders, such as MyBHA, in co-developing policies that are inclusive and sustainable for all parts of the tourism ecosystem.
“Sabah’s tourism potential is immense, but it must be supported by a regulatory framework that upholds safety, fairness, and quality. Every cents collected through licensing should be accounted for and channelled back into tourism infrastructure, safety, and promotion,” said Harold Chung, Chairman of MyBHA® Sabah.
Applauding Community-Driven Tourism Innovation
MyBHA also took the opportunity to commend the recent Community-Based Tourism (CBT) Conference & Expo 2025, held from 28–29 June at Suria Sabah Shopping Mall, jointly organised by the Sabah Tourism Board, UNDP, TPN, and MPC. The event, themed “Building Resilient and Sustainable Communities that Innovate and Transform Tourism,” showcased how local communities can be powerful agents of change in shaping Sabah’s tourism future.
As Kota Kinabalu continues to grow as a major tourism hub, MyBHA encourages DBKK to embrace the diversity of the tourism landscape—including CBT, urban tourism, and licensed budget hotels—and to implement inclusive policies that foster safety, equitable growth, and long-term sustainability.
In closing, MyBHA reaffirmed its commitment to work collaboratively with DBKK and other stakeholders to build a regulated, competitive, and trusted tourism environment—one where tourists feel safe, and tourism operators are treated fairly.
