Penang short-term rentals: Airbnb backs ‘sensible’ regulatory measures

GEORGE TOWN – Penang’s move to regulate short-term rental at residential high-rise properties has got a number of Airbnb hosts worried over the possible blanket ban.

Global homestay platform Airbnb said it is supportive of “sensible regulations” that “deliver positive outcomes for guests, hosts, local communities, and Penang tourism”.

Its regional head of public policy Mich Goh has urged Penang to look at existing mechanisms under the Strata Management Act that will empower residents to decide if and how homestays should be run in their buildings.

She said in a statement that Airbnb has worked closely with the Malaysia Productivity Corporation to share input on national short stay guidelines.

“We’ve worked with governments around the world to maximise the benefits of home-sharing for local communities and economies while ensuring negative externalities are addressed, by implementing clear and considered rules.”

Penang’s move to regulate was made following growing complaints from neighbours of homestay providers that some guests were rowdy and disrupted the quality of life in high-rise residential properties.

Airbnb also shared comments from two of its hosts – Tan Yen Hong and Ben Tan – who are concerned about the proposal by Penang as well as the impact such a plan would have on not only their livelihoods, but on local businesses and communities. 

“Rather than instituting a sweeping blanket ban, a better way to move forward would be for the local authorities to meet and engage with industry players and hosts like us for an informed discussion,” said Yen Hong, who is a host in George Town here.

“Additionally, as a traveller who stays in such accommodation overseas, I truly believe it will be a disadvantage if a Unesco Heritage Site like Penang does not provide this option. Many tourists visit Penang for the experience of living like a local, which is what Airbnb and us hosts provide,” added Ben.

In April, local government and housing exco Jagdeep Singh Deo said local authorities are finalising new guidelines on the matter, which would prohibit short-term rentals at private high-rise residences. 

However, tourism exco Yeoh Soon Hin later said there had been some confusion as the ones regulated by the Tourism, Arts and Culture Ministry were still allowed to operate. 

However, concerns arose when residential apartment units are let out for short-term holiday stays, as they pose an inconvenience to the block’s residents.

Yeoh added that these homestays created unfair competition for licensed hotels as these entities pay tax, hotel fees, tourism tax and what is needed according to the said rules and regulations, while homestays such as Airbnb properties do not.

Though he did not disclose a time frame on when this regulation will take effect, he said more discussion is needed at the exco level along with agencies, local authorities and housing authorities before a solution is presented. – The Vibes, May 12, 2022