Cut the red tape on us and regulate Airbnb, say hoteliers

Hotel associations say that too many regulations add to their overheads.

PETALING JAYA: Malaysian hotel associations have urged the government to reduce their operational costs by scaling back regulations and simplifying licensing procedures in addition to finding ways to fairly regulate Airbnb.

Hoteliers have routinely rued the lack of regulation for Airbnb and homestays, which they say puts hotels at a distinct disadvantage due to the high overheads on hotel operations.

This week, the Penang state assembly heard that guidelines were being drawn up that would allow condominium management bodies to enforce fines for Airbnb leasing through their house rules.

Yap Lip Seng, CEO of the Malaysian Association of Hotels, told FMT that hoteliers are currently forced to jump through “confusing” hoops just to meet minimum standards.

“There are local government licenses, there’s employment regulations, there’s a lot of different fragmented rules and regulations that we need to comply with, and the compliance costs get expensive when you start to add them up.

“On the one hand we have to register with the ministry of tourism, but that’s not connected to our licensing for business as a hotel, which is controlled by the local government and council.”

He said that a one-stop licensing system as in Singapore would both make operations easier for hoteliers and keep costs down, and that it was particularly important with the current pause on tourism dollars.

Shaharuddin M Saaid, executive director of the Malaysian Association of Hotel Owners, said that hotels owners face a slew of regulations that contribute to high overhead costs.

“Hotels need things like pre-construction permits, development permits and operating licenses, and the cost of all these things to hotels can be quite substantial.”

If the government could ease this burden, the need to regulate Airbnb wouldn’t be as urgent, and the level playing field that hoteliers have called for would be easier to establish.

“Airbnb should be treated like hotels are, but hotels should also enjoy loosened regulations to make doing business easier and lessen the administrative costs.”

Emmy Suraya Hussein, president of the Malaysia Budget Hotel Association, said that costs are only getting higher for operators.

“We pay tourism taxes, corporate taxes, and that’s on top of the licenses we need to get from the housing and tourism ministry.”

She agrees that streamlining administrative procedures would help hotels save money, which at the moment is badly needed. “With Covid-19, business in hotels hasn’t been good, so if the government were to reduce some taxes and minimise licences, that would be helpful.”

from Free Malaysia Today https://ift.tt/3nZ1RoX
via IFTTT