Homestay group wants single licence to cover 10 units, welcomes revision in annual fee effective Jan 1


H’ng (front, from second left) discussing with Tan who is with her association members at the press conference at Komtar. Also present are Komtar assemblyman Teh Lai Heng (right) and Air Itam assemblyman Joseph Ng (left). — ZHAFARAN NASIB/The Star

WITH annual licence fee per unit halved to RM500, short-stay operators are seeking one more concession – a single licence covering up to 10 units.

Penang Malaysia Homestay/Short-Stay Operators Association chairman Lydia Tan said a multi- unit licensing system would encourage registration, simplify administration and reduce compliance costs, while helping authorities identify the operator responsible for each unit.

Welcoming the revised annual licence and tourist accommodation premises (TIP) fees, Tan said compliant operators should be recognised as legitimate stakeholders in the state’s tourism industry.

“We hope to establish a short-term rental industry working committee in collaboration with the authorities and the government.

“We also hope this marks the beginning of long-term engagement with the state government,” she said at a press conference at Komtar.

Earlier, Penang local government committee chairman H’ng Mooi Lye said amendments to the Private Short-term Accommodation (Local Authorities of Penang) By-laws 2026 would take effect on Jan 1, 2027.

Under the revised fee structure, he said the flat annual rate of TIP of RM1,800 per unit was replaced with a tiered fee structure based on operational scale.

He said the annual licence fee would be RM500 per unit, replacing the previous RM1,000 fee for units with up to three rooms, with additional charges imposed for extra rooms.

As for the TIP fee, H’ng said it would be RM400 for one-room units, RM600 for two-room units, RM800 for three-room units and RM1,000 for four-room units. Premises with five to 10 rooms will pay RM1,800 annually.

He said the revised fees were intended to make compliance more affordable, following feedback from industry players.

The Private Short-term Accommodation (Local Authorities of Penang) By-laws 2026 was first introduced in August, with the local government giving operators a two-month grace period to register before enforcement began.

The by-laws, he said, were meant to give local councils clearer powers to regulate short-term accommodation, including Airbnb-type operations.

H’ng said the revised provision also clarified the distinction between TIP premises and traditional hotels based on their nature, actual use, and mode of operation.

He said this measure would prevent commercial hotel operators from reclassifying or rebranding their businesses as private lodgings to exploit flexible TIP provisions and bypass hotel licensing standards.

He added that the revisions followed extensive feedback and proposals collected from operators, industry associations, and non-governmental organisations after the initial by-laws were introduced.

Meanwhile H’ng said short-term operators on landed property under the Penang Island City Council (MBPP) would be given a three-year grace period before they must fulfil planning requirements for a change of use from residential to commercial.

“They must obtain approval from their neighbours first before getting approval from local authorities,” he said.

He cautioned that non- compliant operators would face severe penalties, including compounds up to RM1,000, imprisonment for up to one year, and the potential seizure of their premises by local authorities.

He urged all operators to remain fully compliant with active licensing rules.

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