{
  "id": 11604602,
  "title": "Budget 2027: Hoteliers hope for better incentives, operating subsidies",
  "url": "https://urgent.news/2026/10/03/budget-2027-hoteliers-hope-for-better-incentives-operating-subsidies",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-03T04:31:00.000Z",
  "source": {
    "name": "The Vibes",
    "slug": "the-vibes",
    "url": "https://www.thevibes.com/articles/lifestyles/127929/budget-2027-hoteliers-hope-for-better-incentives-operating-subsidies"
  },
  "original_language": "en",
  "account": "Hoteliers are anticipating incentives and operating subsidies in the upcoming Budget 2027 to counteract the surge in operational costs. The Malaysian Association of Hotels (MAH) expressed the hope that more measures would be taken to alleviate the financial challenges faced by the industry. The rising costs stem from utility charges, local government fees, a shortage of workers, and an increase in marketing expenses. Datuk Khoo Boo Lim, MAH vice-president, highlighted the need for higher TNB subsidies and reduced local government assessment fees on commercial properties.\n\nJohn Teo, chapter chairman for Sarawak, reported a 30% increase in overheads over the past two years due to higher labour, utility, food, material, and maintenance costs. He pointed out that material costs skyrocketed post-pandemic while labour costs continued to rise, exacerbated by the need to replace older meters, which increased electricity and water expenses. Teo emphasized that hotels must maintain adequate staffing to ensure operational smoothness and service quality despite fluctuating occupancy rates. He urged for fiscal support measures in the 2027 federal budget, considering the unique operating conditions of hotels of varying sizes. Additionally, Teo suggested strengthening Sarawak's air connectivity by introducing new regional and international routes and enhancing flight frequencies, advocating for collaboration with airlines to devise new routes and intensify promotional efforts.",
  "summary": "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 risi...",
  "key_points": [
    "Hoteliers anticipate incentives and subsidies in Budget 2027",
    "Rising costs due to utility charges, fees, worker shortage",
    "30% overhead increase in Sarawak attributed to labour and material costs"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}