GEORGE TOWN: The Malaysian Budget & Business Hotel Association (MYBHA) Penang Chapter has welcomed the Penang State Government’s move to introduce new regulations for Private Short-Term Accommodation (TIP), saying all accommodation businesses should be properly regulated to ensure public safety, government revenue and a level playing field within the industry.
MYBHA Penang commended the Penang State Government, Penang Island City Council (MBPP) and Seberang Perai City Council (MBSP) for taking steps to further regulate the growing short-term accommodation sector.
The association said the rapid growth of tourism and online booking platforms had made short-term accommodation an established part of the accommodation market, giving travellers more choices while creating new opportunities for property owners and operators.
However, MYBHA stressed that short-term accommodation and hotels should be able to develop alongside each other, provided that all operators are subject to appropriate regulations and operate responsibly.
“Regulation is not intended to restrict business development, but to create a healthier, more responsible and sustainable business environment,” the association said in a statement.
MYBHA said accommodation services directly involve public safety and that all operators providing paid accommodation to the public should take appropriate responsibility for guest safety, fire safety, insurance, security and basic service standards, regardless of whether they operate hotels, homestays or short-term accommodation.
The association also pointed out that accommodation is a commercial activity and said proper regulation would allow the government and local authorities to collect appropriate fees and revenue, which could subsequently support public services, local development and improvements to the tourism environment.
Under the current new regulations, MYBHA said Private Short-Term Accommodation operators are not yet subject to local government accommodation-related fees similar to those imposed on hotels.
The association is therefore proposing that the Penang State Government and local authorities consider requiring TIP operators to contribute appropriate local government fees, arguing that operators providing paid accommodation and generating commercial income should carry comparable business responsibilities and costs.
MYBHA further proposed that any such fees be calculated according to the actual number of bedrooms or rooms offered for accommodation rather than simply based on the number of property units.
It said a single TIP property could contain three or four bedrooms and accommodate a significantly larger number of guests, meaning that treating the property as only one accommodation unit may not accurately reflect its actual capacity or scale of business.
A room-based fee structure, MYBHA said, would provide a more reasonable and equitable approach while creating greater consistency between different types of accommodation providers.
The association also urged the relevant authorities to ensure that the new regulations are enforced fairly and consistently across the industry.
MYBHA said introducing regulations was an important first step, but ensuring compliance among all operators would be equally important to create a more responsible and sustainable accommodation sector.
The association stressed that its position was not intended to restrict the growth of short-term accommodation, but to ensure that all accommodation providers operate responsibly and contribute fairly to the wider tourism and local economy.
