Reports by GERARD GIMINO, RAGANANTHINI VETHASALAM, LO TERN CHERN, VENESA DEVI and STEPHANIE LEE

       PETALING JAYA: It is better for the authorities to regulate homestays rather than impose an outright ban which could affect the tourism industry negatively, say hoteliers.

       Malaysian Association of Hotels (MAH) president Datuk N. Subramaniam said regulating short-term rental units was more realistic.

       “What the hotel industry wants is for these operators to apply and obtain the necessary approval from the authorities.

       “Gaining such approval also ensures the safety and security of guests as there are various requirements that have to be met,” he said, adding that operators should also be paying the same taxes as hotels.

       Subramaniam said homestay operators should also get approval from at least 75% of residents in a housing area before beginning operations.

       Malaysia Budget and Business Hotel Association (MyBHA) deputy president Dr Sri Ganesh Michiel took a stronger stand, saying that all states should follow what Penang is doing and move swiftly to regulate short-term rentals to save the hotel industry.

       “We are not saying they must be banned, but they should be strictly regulated and subjected to the same taxes and fees as hotels.

       “Given that both are offering the same services, short-term rentals must also have the same licences as hotels before operating,” he said, adding that the issue has been raised for many years with no action taken.

       Last month, Penang state housing, local government, town and country planning committee chairman Jagdeep Singh Deo announced that the state had agreed to disallow “check-ins” at landed and high-rise buildings for short-term rental or homestay.

       However, MyBHA’s Sri Ganesh said short-term rentals must not be allowed to operate in populated communities whether they involve landed or high-rise properties.

       “There have been instances of law-breaking activities by guests at these premises, which pose a threat to residents.

       “For example, there was the case of a security guard being assaulted by a homestay guest at a condominium in Ipoh last year, not to mention the various parties held throughout the movement control order.

       “All this paints a bad picture for the tourism industry as a whole,” he added.

       In JOHOR BARU, Malaysian Association of Hotels Johor chapter chairman Ivan Teo said the move to regulate such establishments is welcome as they have created unfair competition for licensed hotels that abide by the Tourism, Arts and Culture Ministry’s regulations, including paying taxes and hotel fees.

       “Such short-term rental stays affect three- and two-star hotels the most as the prices they offer are usually similar, but the homestays are able to provide larger spaces.

       “It is a huge disadvantage, especially because they have more expenses to consider. It is only fair that we regulate such activities.

       “I do understand that this takes time and collaboration from many parties, including resident groups and even developers, but regardless, the state government should take the first step to work towards regulating the activity,” he added

       Johor tourism, environment, heritage and culture committee chairman K. Raven Kumar said that at the moment, there are no plans for Johor to regulate homestays.

       However, he said that a study would be done soon to look into whether there was a need for regulation and the specific areas that needed to be regulated.

       “At the same time, we also need to look at how this will affect the tourism industry as a whole in Johor, especially since borders have reopened.

       “So, it is important for us to study the matter first and this will be done as soon as possible. We will also rope in tourism industry players in the discussion,” he added.

       In KOTA KINABALU, Sabah Association of Tour and Travel Agents also said there was no need to ban short-term rentals or homestays in Sabah, but agreed that regulation is needed.

       Its president Datuk Winston Liaw said with tourism being one of Sabah’s largest sources of revenue, there cannot be such bans or restrictions, but added that regulations have to be in place.

       He said that when the tourism industry returns full time, existing hotels and homestays would not be able to cater to demand.

       “These short-term rentals help fill this demand and regulations can play a part to maintain the safety and quality of accommodations and services provided to customers,” he said when contacted yesterday.

       Liaw said with many of these short-term rentals and homestays situated in commercial business districts, including at malls, their closure would cause a chain reaction, with shopping centres losing what little business they are starting to get back.

       Malaysia Budget Hotels Association chairman for Sabah James Ong said regulating the operations of these short-term rentals and homestays would allow the government to collect the necessary taxes, while safety and other aspects can be monitored.

       He said there was no need to ban their operations because during peak season, these accommodations can help fill the shortfall.

       Sabah Tourism, Culture and Environment Minister Datuk Jafry Ariffin said he feels that there are pros and cons to allowing short-term rentals to operate legally, but since this is quite new in the state, a study is needed.

       Asked if his ministry has ever received complaints from customers about the services provided by these rentals, he said “not yet”.