Homestay ban: further discussions underway, says Penang tourism exco

GEORGE TOWN – After the bomb dropped on Penang’s plan to impose a ban on short-term rentals of private condominiums and high-rise apartments, state tourism exco Yeoh Soon Hin said that there has been some confusion and misconception about the decision.

He said the ones regulated by the Tourism, Arts and Culture Ministry (Motac) are 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 actual residents.

“The exco is looking to further discuss what will be imposed, because this has been a long-standing problem, and many complaints have come in for a long time about apartment units being rented out to tourists and outsiders.

“What we want to look at is regulation, because we need to understand that under the planning rules for apartments and condominiums with a commercial title, there is no issue for the units to be used for business.

“However, if the apartment is approved to be a residential area for residential purposes, then there is an issue,” said Yeoh at the launch of JCI 2022 High Fun Penang at The Top today.

Yeoh added that these homestays created unfair competition for licensed hotels that provide everything according to Motac’s rules and regulations. 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, he noted.

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.

That said, Yeoh highlighted that those currently running homestay businesses in units that are exclusively meant for residential purposes are still breaking the law.

“Some countries have banned Airbnb, while others have come up with rules and regulations to accommodate these types of short-term stays.

“What we lack in this country is rules and regulations at this moment.

“As for Penang, we are planning to come up with those rules and regulations,” he said.

Last week, local government and housing exco Jagdeep Singh Deo said local authorities are finalising new guidelines on the matter, which will specifically prohibit short-term rentals at private high-rise residences. – The Vibes, May 5, 2022