PETALING JAYA: The proposed compulsory licensing for short-term rental accommodation (STRA) will ensure fairness and safety in the hospitality industry, say stakeholders.
Malaysia Budget & Business Hotel Association (MyBHA) president Dr Sri Ganesh Michiel said he fully supports the government’s proposal to make this decision compulsory for all STRA to ensure fairness, safety and proper regulation in the hospitality industry.
“Unlicensed STRA had a significant negative impact on the hotel industry, especially budget and business hotels.
“Licensed hotels comply with strict building codes, fire safety requirements, insurance coverage, local council licensing and taxes; obligations that many STRA operators have avoided,” he said when contacted yesterday.
Ganesh added that this had created an uneven playing field, reducing occupancy rates (for hotels), affecting revenue and undermining legitimate businesses that invest in compliance and quality service.
“Tourists deserve consistent safety and service, whether they choose a hotel or an STRA, and licensing will help maintain Malaysia’s reputation as a safe and trusted tourism destination,” he said.
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Zohaime Muhammad Sori from Melaka, who owns a village-style homestay, said licensing is needed to clearly distinguish between real homestays and other types of STRA.
“Homestays are registered under Tourism, Arts and Culture Ministry (Motac), which is different from STRA homes operating in apartments or residential areas legally or illegally.
“Unfortunately, some unlicensed operators misuse the term ‘homestay’ when in fact they are running STRA, and many people don’t know the difference and assume it’s all legal,” said Zohaime, who is also president of the Malaysia Kampungstay and Homestay Association.
He said strong government regulation on this will help prevent undesirable or illegal activities from taking place in such premises, adding that Motac-registered entities have undergone courses on how to operate the home, maintain cleanliness and provide good hospitality.
On Wednesday, The Star reported that Tourism, Arts and Culture Minister Datuk Seri Tiong King Sing said STRA operators will soon be required to obtain a business licence from local authorities to register as tourist accommodation premises.
This decision was agreed upon by Motac and the Housing and Local Government Ministry to improve regulatory control of STRA and tourist lodging premises.
Housing and Local Government Minister Nga Kor Ming said STRA providers will be required to register with the Companies Commission of Malaysia (SSM), obtain permits and licences from local councils, and be insured.
This new framework, which includes a comprehensive set of guidelines, is meant to ensure STRA operations are on par with those of the hotel industry.
Nga said once they receive approval from their local council, providers will also have to register with Motac.
Meanwhile, a study has found that Airbnb-related tourism contributed RM9.2bil to Malaysia’s economy last year, equivalent to around 5% of the sector’s GDP.
The report by Oxford Economics, commissioned by the accommodation platform Airbnb, said such activity supported about 93,600 jobs and RM2.1bil in wages in 2024.
Domestic travellers accounted for two-thirds of guests, surpassing pre-pandemic levels, while the proportion of international visitors more than doubled compared with 2022.
Most overseas guests came from the Asia-Pacific region. Guest spending totalled RM11bil, with more than half taking place outside Kuala Lumpur and Selangor.
The study also found a 68% rise in non-urban accommodation spending since 2019.
Economic impacts were recorded beyond tourism, including RM1.4bil in manufacturing, RM1.2bil in transport and storage, and more than RM1bil in wholesale and retail trade.
“By broadening the reach of tourism, Airbnb is fuelling economic growth nationwide, supporting jobs, sustaining livelihoods and energising a diverse array of industries across the country.
“Harnessing Airbnb’s platform means empowering communities and expanding Malaysia’s economic success well beyond conventional boundaries,” said James Lambert, director of Economic Consulting Asia for Oxford Economics.
Federation of Malaysian Consumers Associations vice-president and legal adviser Datuk Indrani Thuraisingham said requiring STRA operators to hold a local authority business licence and register as tourist accommodation is good for consumers, provided the framework includes clear safety standards, platform accountability and simple mechanisms for redress.
“Done poorly, it could shrink supply and push prices up. The details matter,” she said.
“With a licence number, consumers know who is responsible and where to complain. Going further by requiring platforms to verify registrations and block unregistered listings can reduce ‘ghost’ operators and simplifies enforcement.”
