GEORGE TOWN, January 28 — The Malaysian Budget Hotel Association (MYBHA) Penang chapter has voiced concerns over a proposed 50% hike in hotel fees and the lack of transparency surrounding the allocation of funds collected since 2014. Initially introduced to support tourism promotion, these fees have recently been redirected to the state’s consolidated revenue account, leaving hoteliers questioning their role as collection agents and the effectiveness of fund utilization.
MYBHA highlighted inconsistencies in enforcement, pointing out that while licensed hotels comply with the fee collection, short-term rental (STR) operators have not been uniformly required to contribute. This creates an unfair playing field, particularly as STRs have since been legalized under Penang Island City Council regulations. MYBHA estimates that including STR operators in the fee structure could generate an additional RM3 million annually, reducing the need for a fee hike.
Chairman Andy Eng Leong emphasized the importance of stakeholder engagement, advocating for hoteliers’ involvement in fund allocation decisions to ensure transparency and accountability. “We are not against the fees but demand clarity and equitable enforcement across all accommodation providers to support Penang’s tourism growth effectively,” he said. MYBHA Penang remains committed to collaborating with the state government to refine the fee collection system and maximize its impact on the local tourism industry.
