Hotels forced to increase room rates due to hikes in operation costs, says MAH

THE Malaysian Association of Hotels (MAH) expects room tariffs to rise nationwide because of the new commercial rates for power tariffs and the revised Sales and Services Tax (SST) with the new charges expected to be implemented from tomorrow.

While MAH prefers not to contribute to the rise in living costs, there is no choice but to pass the costs onto the consumers due to the spike in operating costs, said MAH vice-president Datuk Khoo Boo Lim

It is preliminary to determine the actual quantum of room tariff increases, but market forces would cause a hike in room rates to meet the rise in operating expenditure, said Khoo.

"We have no choice. We are facing demands in the rise in wages, food prices and now power tariffs and some elements of SST need to be absorbed," he said.

He said that Malaysia's perennial weakness is in the need for food imports, as hardly anything is produced domestically - so from carrots to rice, it is all brought in.

"Food and beverage components are an essential service in the hospitality industry and our guests, who are predominantly Malaysians like to sample food."

He echoed what his counterpart in Negri Sembilan had advocated.

"I think it is the same trend nationwide. Hotel rates need to go up."

He said that the minimum wage of RM1,700 is not applicable in Malaysian hotels. If we want quality service, we must be willing to pay our workers at least RM2,000 and above with fringe benefits thrown in.

Yesterday, Negri Sembilan chapter MAH chairman Haziz Hassan said that this situation will have a knock-on effect, thus increasing the cost of hotel operations.

“We have just implemented the minimum wage of RM1,700 and starting this July, the new electricity tariffs and new taxes will be implemented.

“All of this was initiated in a short period of time and I admit that this situation is quite worrying, especially when thinking about the new electricity tariffs,” he said.

Hafiz did not rule out the possibility that hotel rate prices would be increased by between 10% and 15%.

Travel trade industry insiders said that the hotel rates increase is not encouraged, especially with the "Visit Malaysia Year 2026" campaigning looming in six months.

The campaign is to officially marked the country's return to tourism in a big way after the dreadful outcome of Covid-19 some four years ago. - June 30, 2025