John Teo, the Malaysian Association of Hotels' Sarawak chairman, called for government support measures to take into account the actual operating conditions of hotels of different sizes. (Envato Elements pic)

PETALING JAYA: Hotel operators in Sarawak have seen their overheads increase by 30% over the last two years, which they attribute to higher labour, utility, food, material and maintenance costs, a hotelier said today.

John Teo.

Material costs rose significantly following the Covid-19 pandemic, while labour costs continued to increase, said John Teo, Sarawak chairman of the Malaysian Association of Hotels.

He said electricity and water costs had also increased, as hotels needed to replace older meters, the Borneo Post reported. 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.