THE Malaysian Budget Hotels Association (MyBHA) has joined counterparts - the Malaysian Association of Hotels (MAH) calling for the authorities to act against the rise in unlicensed short-term rental accommodation across digital platforms.
MyBHA president Dr Sri Ganesh Michiel said that while preparations for next year's Visit Malaysia Year (VMY2026) campaign intensify, illegal homestays continue to underline legit hospitality operators.
These illegal operators continue to operate outside regulatory frameworks, posing safety risks, evading taxes, and undermining licensed hotels that fully comply with national laws, he said in a statement.
Despite previous dialogues within the industry, the Madani Government has yet to take firm action, Ganesh claimed.
"If no immediate intervention is made particularly digital enforcement and regulation - the success of VMY2026 will be compromised. Licensed businesses bear all the costs, yet reap none of the campaign’s benefits, while illegal listings continue to profit," said Ganesh.
"We call for urgent, coordinated enforcement by the government regulate all forms of homestay and hold platforms accountable. The time for action is now. Malaysia’s tourism credibility is on the line."
Ganesh, who is also the secretary - general of the Federation of Malaysian Tourism, said that there is a need to regulate this problem once and for all.
Earlier, MAH vice-president Datuk Khoo Boo Lim echoed a similar stance, saying that illegal homestays continue to undermine legal operators.
There are up to 350,000 registered hotel rooms but it is believed an additional half more may be in the category of unregulated homestays. - June 3, 2025.
