KOTA KINABALU, May 9 -- Hotels in Sabah may increase rates if the state cabinet is adamant to uphold the decision made by the Kota Kinabalu City Hall (DBKK) to charge hotel licensing fees on a per-room-per-night basis for occupied rooms.

Malaysia Budget & Business Hotel Association (MyBHA) Sabah chairman James Ong Kim Loke said the move is unreasonable, as such fees should be considered fixed operational expenses.

He said that it is not appropriate to pass these charges on to hotel guests.

Ong described the DBKK licensing fees under the Hotel and Lodging Act 1966 as outdated and noted that the by-law is not set in stone and can be amended if there is the political will to do so.

He added that the MyBHA Sabah Chapter was invited to two...