Budget hotels battle competition, rising costs

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MyBHA members taking a group photo during AGM.

KUCHING: The Malaysia Budget & Business Hotel Association (MyBHA) has spoken out against unwarranted price increases in the budget hotel sector.

In a statement, the association made it clear that price adjustments would only be made in response to persistent challenges affecting the industry, which influence both revenue and operational costs for budget hotels.

This clarification came after the Annual General Meeting (AGM) of the MyBHA Sarawak Chapter on April 18, where members highlighted several critical issues requiring government intervention.

Key concerns raised by MyBHA include the unregulated activities of Online Travel Agencies (OTAs), the widespread uncontrolled growth of Short-Term Rental Accommodations (STRA), the lack of strict enforcement against unlicensed accommodation providers, and other factors that either raise operating costs or reduce revenue for budget hotels.

Consequently, MyBHA has appealed to the Minister of Tourism, Creative Industry and Performing Arts, Datuk Seri Abdul Karim Rahman Hamzah, and other relevant authorities to provide immediate support to budget hotel entrepreneurs and operators, particularly in Sarawak, to help ensure the sustainability of their businesses.

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The association emphasised the urgency of this support to protect the interests of regional budget hotel entrepreneurs and operators.

It also reaffirmed its support for the state government’s goal to attract a high number of tourists, but stressed that the government must ensure that those benefiting from tourist arrivals are registered and licensed operators within the tourism and hospitality industries.

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