KUALA LUMPUR: The Malaysia Budget and Business Hotel Association has issued a call for government assistance to address critical issues affecting the hospitality sector, particularly in Sarawak.
Its national president Dr. Sri Ganesh Michiel said there was an urgent need for stricter enforcement and regulation to protect the interests of budget hotel operators.
He reassured that budget hotel operators in Sarawak have no intention of unjustly hiking prices.
"However, such increases will occur only if threats to the hotel industry are not addressed by the relevant authorities, and directly or indirectly contribute to a decrease in revenue or an increase in operating costs," he said.
Among the pressing concerns highlighted were the unregulated practices of Online Travel Agencies (OTAs) and the proliferation of Short-Term Rental Accommodations (STRA) without proper licensing.
Apart from that, Sri Ganesh said the ministry should also take strict action against unlicensed accommodation providers, that has affected licensed hotel operators and carry out appropriate intervention to immediately assist budget hotel operators especially in ensuring the sustainability of their businesses.
"These grouses stemmed from the Annual General Meeting of the Malaysia Budget and Business Hotel Association (Sarawak Chapter) on April 18 in Kuching. These issues, if left unaddressed, could significantly affect licensed operators and lead to increased operational expenses."
He called upon Minister of Tourism, Creative Industry, and Performing Arts Sarawak, Datuk Seri Abdul Karim Rahman Hamzah, and relevant authorities to intervene promptly.
He stressed the importance of ensuring the sustainability of budget hotel businesses, particularly in Sarawak, where licensed operators have been adversely affected by the lack of government oversight.
"We will support the state government's ambition to attract a high volume of tourists, but the government must ensure that the beneficiaries of tourist arrivals are via registered and licensed tourism or hospitality industry entrepreneurs," he said.