HOTELIERS are hoping for more fiscal incentives and operating subsidies in the upcoming Budget 2027.
With the budget scheduled to be tabled at month-end, hoteliers, who form the bulk of the travel trade industry, want some incentives to mitigate rising operational costs.
While the ongoing "Visit Malaysia Year 2026/2027" campaign is underway, the Malaysian Association of Hotels (MAH) hopes to see more measures to help them cope with costing issues.
Hotels have seen an upsurge in costs from utility charges, local government fees, and an acute shortage of workers, besides the rise in marketing expenditure, MAH vice-president Datuk Khoo Boo Lim said.
Some of the measures include higher subsidies from Tenaga Nasional Berhad (TNB) and mitigating the local government assessment fees imposed on the commercial properties.
In Sarawak, Khoo's colleague, John Teo, the chapter chairman, says that operators in Sarawak have seen their overheads increase by 30% over the past two years.
He attributed it to higher labour, utility, food, material and maintenance costs.
Material costs rose significantly following the pandemic, while labour costs continued to increase.
He said electricity and water costs had also increased, as hotels needed to replace older meters.
These increasing costs were reducing profit margins, and operational costs could surge further if the government approves the proposal to increase the minimum wage to RM2,100 from the current RM1,700.
Teo said hotels needed to maintain adequate manpower to ensure smooth operations and service quality regardless of occupancy.
Teo called for fiscal support measures, including initiatives in the 2027 federal budget, to take into account the actual operating conditions of hotels of different sizes.
He also suggested the need to strengthen Sarawak’s air connectivity, including establishing new regional and international routes and increasing flight frequencies.
The government should work with airliners to chart new routes and redouble promotions, he said. - October 3, 2026.
