Budget hotel operators warned against hiking rates

KUCHING: Minister of Tourism, Creative Industry and Performing Arts Dato Sri Abdul Karim Rahman Hamzah has issued a stern warning against operators of budget hotels who indiscriminately increase their rates.

He said such action could have detrimental effects on tourism revival and the overall tourism industry in the state.

He also stressed the importance of consensus among hotel management associations before any rate adjustments are made.

“For any increase, I believe there must be some consensus among the ones that manage hotels. We have an association of hotels, so when it comes to budget hotels I believe they have their own association and group, and any decision to increase must be a consensus among them.

“Nobody should be increasing indiscriminately because it will also affect tourism revival and then our tourism industry,” he told reporters when met at his ministry’s Aidilfitri open house at Penview Convention Centre here yesterday.

Recent statements from the Malaysian Budget and Business Hotel Association (MyBHA) have warned of potential rate hikes ranging from 30 to 40 per cent over the next three months.

MyBHA president Sri Ganesh Michiel attributed these potential increases to various factors reflected in operational costs.

Abdul Karim clarified that while he had not received official information regarding the reports, he had heard about a possible increase last year.

However, he reiterated his ministry’s dedication to closely monitor the situation, ensuring that any adjustments are reasonable and do not adversely affect tourism in Sarawak.