YB Datuk Pang Yuk Ming, Assistant Minister of Tourism, Culture and Environment Sabah said that he would like to see more 4 and 5-star hotels in Kota Kinabalu to cater to the demand of tourists who enjoy the beach front.

Talking during the opening of Mercure Hotel by Accor Group today (23 October), he also welcomed the opening of more 3-star hotels in the CBD but says that there is sufficient amount of rooms in the budget hotel segment. "You may want to rethink your plans for budget hotels. Maybe you would like to explore other services to serve the tourists, like restaurants," said Datuk Pang.

"If you ask my opinion, I would like to see more resorts" said Datuk Pang as he goes on to say that many hotel operators are starting to pick up on the demand from tourist here and are making their move into the Kota Kinabalu CBD.

"Marriot is opening up soon, Holiday inn has started building, Jen by Shangri-La group is also opening up next year, and as everybody know there are 3 more hotels coming up at the convention center (SICC) area, one of them is Pullman" he said.

Datuk Pang says that there is a shortage of hotels rooms to cater to the Chinese and South Korean market who make the majority of incoming international travellers. According to him, Kota Kinabalu is expected to receive 450,000 arrivals from China and around 250,000 to 280,000 South Korean arrivals for 2017. As of August, Kota Kinabalu received 296,441 arrivals from China, a 16.9% increase from last year. For South Korea, Kota Kinabalu received 196,895 arrivals, a 53% increase from 2016.

The opening ceremony of Mercure Hotel was officiated by Sabah Chief Minister, YAB Tan Sri Datuk Seri Panglima Musa bin Haji Aman.