Position on Government Fees
MyBHA® wishes to stress that the Association is not opposed to taxes or fees imposed by the Selangor State Government. The Association acknowledges the right of the State to levy charges; however, it must be done transparently, fairly, and with proper preparation. At present, licensed hoteliers face significant uncertainty and operational challenges due to the absence of detailed instructions on how fees are to be collected, reported, and remitted.
Without a clearly defined framework, hotels risk operational disruptions, disputes with guests, and compliance issues.
Operational and Compliance Challenges
Collecting these fees imposes additional operational burdens on hotels. Properties will need to upgrade or modify accounting and property management systems, allocate extra manpower for administration and reporting, train front-line staff on fee collection, manage disputes and potential errors. These requirements effectively place hotels in the role of unpaid tax collectors, a responsibility that comes with both administrative and financial burdens.
For budget hotels operating on thin margins, this creates a serious risk to sustainability.
Unfair Market Conditions
MyBHA® is concerned that unlicensed and illegal accommodation providers continue to operate without enforcement, creating an uneven playing field.
Similarly, Short-Term Rental Accommodation (STRA) remains largely unregulated, even though they compete directly with licensed hotels. Licensed hoteliers are expected to comply immediately, while non-regulated operators continue to benefit, undermining fair competition and discouraging investment in quality service standards.
Imbalanced Fee Structure
The Association also highlights that the current fee structure is inequitable and counterproductive. Non-rated accommodations are charged the same fees as star-rated hotels, and the fee structure may even incentivize hotels to downgrade their star rating. This approach undermines quality assurance initiatives and sends a negative signal to businesses seeking to invest in improving services and standards.
Public Communication and Transparency
It is essential that guests and the public are clearly informed that these fees are State Government charges and not imposed by hotels. Transparency in communication is critical to avoid confusion, disputes, and reputational risk for hoteliers. Moreover, MyBHA® stresses that funds collected should be used strictly for the development of the hospitality and tourism industry, with full public disclosure on how the revenue is utilized.
Guidance on Handling Guest Refusal to Pay Fees
In cases where a guest refuses to pay a mandatory government fee, MyBHA® recommends that hoteliers adopt the following measures:
• Clear Communication: Explain that the fee is mandated by the State Government and not a hotel charge.
• Require Payment: Make fee payment a condition for check-in, including in booking terms and conditions.
• Document in Contracts: Ensure the fee is explicitly included in reservation confirmations and hotel policies.
• Refuse Service if Necessary: Deny check-in if the guest refuses to comply, while documenting all communications to avoid disputes.
• Seek Legal Guidance: Consult legal counsel to ensure all actions comply with regulatory requirements.
These steps allow hotels to comply with government regulations without being unfairly penalized or exposed to operational risk.
Affordable Accommodation Must Be Preserved
Budget hotels serve a critical segment of society, catering to lower- and middle-income travellers, domestic tourists, workers, and families. MyBHA® urges the government to ensure that budget hotel prices remain affordable, by simultaneously ensuring that operating costs remain manageable to enable hotels to deliver quality services at reasonable rates.
Without careful planning, additional costs from fee collection may inevitably be passed on to consumers, affecting accessibility to affordable accommodation.
Official Statement from MyBHA® National President
“MyBHA are calling for clarity, fairness, and readiness,” said Dr Sri Ganesh Michiel, National President of the Malaysia Budget & Business Hotel Association (MyBHA®).
“Hoteliers are currently expected to collect these fees without clear guidelines while bearing additional operational costs. We therefore propose a minimum grace period of six (6) months, during which no enforcement or punitive action should be taken against our members. This grace period will allow hotels to upgrade systems, train staff, communicate effectively with guests, and ensure full compliance. It is the responsible approach that protects consumers and businesses alike.”
Call for Grace Period and Postponement of Enforcement
In light of these concerns, MyBHA® formally calls for:
• A minimum six-month grace period from the date of official implementation;
• No enforcement, penalties, or punitive actions against MyBHA® members during this grace period;
• Clear and standardised guidelines and Standard Operating Procedures (SOPs) for fee collection;
• Strengthened enforcement against unlicensed accommodations and Short-Term Rental Accomodations (STRA);
• Review of the fee structure to ensure fairness and equity;
• Public communication that clearly states fees are state charges, not hotel-imposed.
MyBHA® remains committed to working constructively with both Federal and State Governments to ensure policies that are transparent, fair, and supportive of sustainable tourism growth, while safeguarding consumer interests and protecting the viability of our members.
For and on behalf of
The Malaysia Budget & Business Hotel Association (MyBHA®)
Issued by:
Dr Sri Ganesh Michiel
National President, Malaysia Budget & Business Hotel Association (MyBHA®)
President, Malaysian Tourism Federation (MTF)
