All short-stay rentals may soon be licenced, required to pay taxes

THE Ministry of Tourism, Arts and Culture (MOTAC) will study a proposal to compel short-term stay operators in the country to be fully licensed and for such service providers to pay taxation to local authorities.

After some three years of constant lobbying by the Malaysian Association of Hotels (MAH), the move to legalise short-term stay operators has begun to see results.

It was learnt that during a dialogue session between MOTAC Minister Datuk Seri Tiong King Sing and travel trade organisations in Penang, the former accepted the decision to license such service providers, especially with the Visit Malaysia 2026 campaign under full swing soon.

Tiong understood why such providers, namely those from the international online marketplace for long and short homestays, such as Airbnb, need to have their operations well-regulated and for tax to be paid.

Among the grouses raised by MAH are the safety and security of guests at such stays, especially over fire code safety regulations.

The Visit Malaysia campaign aims to attract 35.6 million tourists and generate RM147.1 billion in tourism receipts. It is the first to after the pandemic years of 2020 to 2022, when the hospitality industry almost came to a standstill.

Tiong said the campaign will focus on sustainable and experience - driven tourism, highlighting Malaysia's diverse cultural heritage and natural attractions, with emphasis on eco-tourism and engaging with lesser-known states to showcase a more inclusive experience.

Tiong, who was accompanied by Tourism Malaysia Board deputy chairman Datuk Yeoh Soon Hin and state executive councillor for tourism, Wong Hon Wai for the session, also urged travel trade members to observe strong safety and security standards for their clients, as the country needs to maintain its good name in tourism.

Tiong also said that the authorities would be monitoring all tour and express bus operators to ensure the drivers are well- behaved when driving.

There is also a move to offer basic language lessons to tour guides and frontliner staffers other than English and Mandarin.

He urged travel trade members to take up lessons in Hindi, French, Spanish, or Russian as the country is now attracting tourists from new inbound markets. 

MAH vice-president Datuk Khoo Boo Lim welcomed Tiong's assertions, saying that it will boost the hospitality sector to improve its services and attract reinvestments.

Khoo said the measures undertaken by MOTAC, can only spur tourism to greater heights, especially in major destinations such as Penang and Langkawi.

Khoo also urged food providers to maintain their high standards since many tourists have heard positive feedback about the gastronomic scene. - September 16, 2025.