Penang hoteliers lose patience over growing number of short-term rentals, homestays

Penang hoteliers are growing increasingly frustrated with the increasing number of short-term rentals and illegal homestays, despite the state's attempts to regulate them. Malaysia Association of Hotels (MAH) vice-president Datuk Khoo Boo Lim highlighted that licensed hoteliers are primarily concerned with the prevalence of Airbnb and illegal homestays. Khoo emphasized that these establishments should be licensed, similar to hotels, and that fire safety and security permits are essential.

Khoo also stated that there is a need for a uniform regulation governing both hotels and private short-term stays. He pointed out that while purchasing properties to lease them as Airbnb may seem like an attractive investment, it raises ethical concerns, especially considering the impact on bona fide hotels that provide employment opportunities.

According to Khoo, the tourism industry in Penang is experiencing a disconnect between direct flight arrivals, tourist figures, hotel occupancy rates, and revenue. The average occupancy for MAH members is around 60% in recent months, which is positive progress after the pandemic's lean years, but there is still room for improvement.

An industry insider suggested that Penang should review its statistics gathering methods, taking into account that direct flights or tourist arrivals at airports do not fully capture the spillover benefits to the leisure industry. Some passengers use Penang as a transit point to other destinations, meaning the primary benefit is for retailers at the airport.

Hoteliers in Penang have also expressed concerns about a potential surplus of hotels in the region. There are approximately 894 registered hotels and commercial accommodations listed on major booking platforms, offering a total of 22,500 rooms throughout the year. In a recent development, two luxury hotels in Penang received the MICHELIN Keys Certification, marking them as the first hotels in the state to receive this prestigious international recognition.