THE Penang Island City Council (MBPP) has recently established a general guideline to ban all forms of short-term rental accommodation (STR) in residential units on the island effective immediately.
MBPP mayor Datuk A. Rajendran said the ban covered all private residential properties and only commercial high-rises are allowed for STR services, subject to strict regulations. Landed properties are strictly prohibited from operating STR business.
However, Rajendran said those planning to offer the STRs in the commercial categories must obtain the approval of their respective joint management bodies (JMBs) or management corporations (MCs).
He said they need to obtain a 75% ‘yes’ vote from other residents during the annual general meeting.
JMBs and MCs are then to collect an annual fee ranging from RM250 to RM500 a year per unit, with new registration fees of up to RM250.
The unit must also be registered with MBPP and the owner must provide Companies Commission of Malaysia documentation.
Buletin Mutiara interviewed various stakeholders and a few Penangites to get their perspectives on the matter. Here are their comments:
Tony Goh (Malaysian Association of Hotel Penang chapter chairman):
“First of all, we are very happy and we welcome the latest move by the state government through MBPP to implement this new guideline to ban all forms of STR residential units on the island.
“Short-term rental home or homestay accommodation has created unfair competition for licensed hotels that abide by the ministry’s regulations, including by paying taxes and hotel fees.
“With this new guideline, they will have to get a proper licence and document before starting to rent their units out on a short-term basis and a few other conditions that they must abide by.
“Apart from that, there should be regular enforcement by the authority as well to ensure these owners are following all the rules and conditions as stated in the guidelines.
“If that can be done, then, we can create an equal playing field so that the state tourism industry can recover and thrive once again.
“Overall, it is a good start by the state government to regulate this matter.”
Datuk Lim Mee Lee (Penang Hoteliers Association chairman):
“On behalf of the Penang Hoteliers Association, we are fully supportive of such a decision taken by the MBPP to regulate home-sharing to safeguard the tourism experience in Penang.
“Cheaper hotels have been hit hard all these years due to STR, especially for many hotels classified as four stars and below.
“As a hotel operator, we have many regulations to follow but home-sharing operators don’t have to worry about anything. We must not let this continue.
“With the new ruling, we hope that all STR operators will strictly follow the guidelines.”
Muhamad Fazrul Che Lan (businessman):
“Personally, I am very happy when I read the news regarding the STR regulation.
“This is because I am one of the high-rise residents in Tanjung Tokong. Many owners in commercial buildings here are illegally carrying out STR businesses without first consulting or informing the management corporation (MC).
“As a result, there has been an issue related to security, cleanliness and noise pollution caused by the guests.
“This has made many residents feel very uncomfortable.
“With the new guidelines, STR operators will need to obtain at least 75% ‘yes’ vote from us (residents) during the annual general meeting before they can turn their units into STR businesses. This is fair and square for everyone.”
Chong Zhan Cheng (cafe owner):
“People are usually disturbed by short-term stays, especially at apartments.
“This issue is not new. It has been around for years. Thus, I fully support this initiative by MBPP to regulate this matter.
“Now, the operators have to follow all the rules and cannot just use their units for monetary gain only while compromising other important aspects, such as security, cleanliness, and exclusivity of the property.”
Story by Riadz Akmal
Pix by Adleena Rahayu Ahmad Radzi