Malaysia

Reconsider regulating short-term rentals, Airbnb tells Penang govt

Company says proposed guidelines could adversely impact local tourism, economy

Updated 3 years ago · Published on 16 Feb 2023 6:39PM

Reconsider regulating short-term rentals, Airbnb tells Penang govt
Vacation rental company Airbnb warns that the Penang government’s proposed guidelines for short-term rental accommodation could hurt local tourism and economic growth. – AFP pic, February 16, 2023

by Maithilli Kalaiselvan

KUALA LUMPUR – Vacation rental company Airbnb has urged the Penang government to reconsider its proposed guidelines for short-term rental accommodation (STRA) which it claims would adversely impact local tourism and economic growth.

Mich Goh, Airbnb’s head of public policy for Southeast Asia, India, Hong Kong and Taiwan, said that the state should review its plan in this regard, and ratify a simple and balanced outlook in regulating STRA.

Speaking at a press meeting here today, she added that she hopes to have a meeting with the federal government soon to discuss this issue at the national level. 

She said that a meeting could help facilitate better the company’s service in Malaysia while assisting the country with the post-pandemic economic recovery. 

According to the guidelines, the duration of a guest’s stay is limited to three days per week, and a maximum of 180 days a year. This condition applies to those who want to rent their homes out. 

Airbnb cited a survey by YouGov which shows that 43% of homeowners in Malaysia consider hosting on the platform to take advantage of the travel rebound which helps Malaysians to participate in entrepreneurship.

With Kuala Lumpur positioned as the second-top trending destination worldwide in the third quarter of 2022, Airbnb creates more job opportunities for locals to be its hosts and cleaners.

It also boosts the businesses of the surrounding areas and helps local communities to develop in sectors like e-hailing, food and beverages, and tourism.

Since the guidelines released by the Penang government disallowed STRA activities in strata buildings with residential titles in Penang Island, Airbnb has the option to proceed further by securing 75% of the votes via the Commissioner of Buildings and the Joint Management Body of the building under the Strata Management Act 2013 (SMA 2013).

“Hosting has helped so many of our hosts in Penang and around the world make ends meet and earn supplemental income. 

“We believe that short-term rental should be regulated fairly and progressively to enable everyday Malaysians to share their homes without excessive barriers, especially as they navigate the rising costs of living,” Goh said.

Asking about the complaint by residents of an apartment complex with regards to noise and inconvenience in the strata buildings, Goh said that issues like that can be settled through dealing with the building’s management or the accountable Airbnb host, instead of blanket guidelines that aim to reduce STRA activity. 

In January this year, the company had suggested that its services be allowed if the host unit owners can obtain majority approval from their respective joint-management bodies. 

The Penang government’s STRA guidelines are being made following complaints from high-rise residents who have expressed their objections to being inconvenienced, sometimes by rowdy and rude Airbnb guests. – The Vibes, February 16, 2023.

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