GEORGE TOWN – Vacation rental company Airbnb has suggested that its services should be allowed if the host unit owners can obtain majority approval from their respective joint-management bodies (JMBs).
In a statement, the international company shared its own suggestions on how best to regulate the short-term rental industry by allowing all strata-titled owners to lease out their units on a simple and balanced approach
Referring to the Penang government’s short-term rental accommodation (STRA) guidelines to regulate it following complaints from high-rise residents, who have expressed their objections to rowdy and rude Airbnb guests, its services should be allowed if the JMBs of such properties allow it.
Under Penang’s proposed STRA guidelines, the accommodation services can co-exist under its guidelines of “untuk semua” (for all) service providers.
For strata buildings with commercial titles, which are already zoned for commercial activities, Airbnb’s proposed recommendation calls for STRA to be allowed by default in all strata buildings.
For strata buildings with residential titles, building residents should be able to continue using the existing Strata Management Act 2013 (SMA 2013), to collectively decide with a 75% vote via their JMB or management corporation if any conditions or restrictions around STRA should be implemented.
Airbnb has also suggested introducing a simple and low-cost online authorisation portal to ensure the registration process for hosts is straightforward and accessible.
The current proposed guidelines by the Penang government require an onerous process, by which all hosts must register with the Malaysian Companies Commission (SSM) and submit physical forms to apply for additional licences from local authorities.
The Penang government is looking to implement a 180-night cap and a 3-day-per-week guest occupancy limit.
Airbnb suggests doing away with the proposition of a cap on booking nights, as this severely limits guest travel and undermines ongoing efforts to promote Penang and Malaysia as a preferred digital nomad hub.
The company also asks to allow all tax-paying residents in Malaysia to engage in short-term rental and maximise the economic benefits of the home-sharing economy.
The Penang government is proposing that short-term rental can only be conducted by Malaysians and only those registered with the Malaysian Companies Commission.
Mich Goh, Airbnb’s head of public policy for Southeast Asia, India, Hong Kong and Taiwan, said: “We strongly believe that as tourism gradually recovers, STRA and Airbnb’s community of hosts and guests will be a key driver for Penang’s tourism industry, and more broadly the Malaysian economy.”
The current guidelines proposed by the Penang government in July last year pose severe constraints on domestic and international travel to Penang, and will be detrimental to the state’s tourism industry and long-term economic growth.
Airbnb has previously urged the government to consider and support a national regulatory framework to ensure that STRA rules are uniform across the country.
A national system would reduce the administrative burden on hosts and state authorities and encourage compliance with the STRA legislation.
Prior to the pandemic in 2019, STRA activities on Airbnb in Malaysia contributed to RM553.2 million in Penang’s gross domestic product and supported 5,900 jobs.
Airbnb guests spent a total of RM4.4 billion in Malaysia, which included accommodation, transport and supporting local restaurants and retail stores.
Last year, state exco member Jagdeep Sigh Deo, who oversees the housing and local government portfolio, disclosed the state’s intentions to become the first in the country to regulate short-term rentals and homestays, which affected Airbnb.
Jagdeep said the need to impose guidelines was necessary due to complaints from neighbours of Airbnb hosts and other stakeholders.
The Malaysian Association of Hotels vice-president Datuk Khoo Boo Lim said Airbnb hosts need to be regulated in the way that hotels are by the local authorities as what they are offering can be deemed as a commercial enterprise.
“They need to ensure fire safety and security for their guests. Similar to how hotels operate.
“The licencing is for the general safety of all.”
“As they are competing with the hotels, they should also be subjected to some degree, similar regulations,” he said. – The Vibes, January 20, 2023
