Kota Kinabalu City Hall director general Junainah Abbie, clarified that there is no ban on homestay businesses in the state.
Homeowners can rent out their properties as long as they adhere to building plan approvals and business conditions.
The response was prompted by a viral video alleging a ban due to pressure from Korean and Japanese investors.
Junainah emphasized that no such ban exists; entrepreneurs who breach regulations would face fines, not bans.
She urged people not to share unverified information, warning of potential legal actions.
The City Hall supports homestays if they comply with state Tourism, Arts, and Culture Ministry (Motac) and City Hall conditions.
KKCH has promoted community-based tourism, registering homestays like Homestay Desa Cinta Kobuni and Homestay Id Kalangadan.
Tourist arrivals in 2023 reached 988,680, highlighting their confidence in local facilities and accommodations.
