KOTA KINABALU, MALAYSIA: This means the days of RM100 per head for meals are over with shark's fin soup definitely off the menu.

State Tourism, Culture and Environment Minister Datuk Masidi Manjun said this was decided at a recent meeting with Chief Minister Datuk Seri Musa Aman on the matter.

"It's business as usual. The hotel industry must be given support as the sector is starting to feel the pinch brought on by the fuel price hike.

"If we reduce the number of our functions at hotels, there will be less revenue and hotels may have to downsize and retrench workers. This will turn into a problem for the government."
Masidi said another reason was that the government would not earn taxes from hotels if they did not generate enough business.

"However, we must be prudent when we go to hotels for events."

The Federal Government recently decided not to organise events besides those at international level at hotels as part of cost-cutting measures.

Malaysian Association of Hotels president Datuk Mohd Ilyas Zainol Abidin was subsequently quoted as saying that up to 70 per cent of events at hotels were from the government sector and that the directive could wipe out some hotels.

Masidi yesterday spent half the day in separate dialogue sessions with hoteliers and tour operators at the Pacific Sutera Hotel to get feedback on problems facing the sector.

A number of issues were raised, including the need for diesel subsidies for tour boats, presence of illegal tour operators and need for more direct international flights into Sabah.

One tour operator was concerned as she was informed just before the dialogue that a hotel used by her company would be raising room rates from Aug 1.

Others touched on the fact that they had signed contracts with agents, making it impossible to change package prices as commitments had been made, forcing businesses to absorb extra operational costs.