GEORGE TOWN: Short-term rental accommodation (STRA) operators and property owners want an official briefing on the proposed regulatory controls.
Operators are worried that the new rules, expected to be enforced by local councils, could raise operational costs, discourage small-scale hosts and limit budget accommodation options.
An operator, who only wanted to be known as Halim, said the proposed regulations should consider the industry’s input before any implementation takes place.
“We don’t mind if the government wants to regulate STRA, but at least they have to let us know what we need to do.
“Without clear guidelines on licensing, fees and inspections, small operators could face delays and financial strain,” said the 45-year-old businessman, who manages one unit.
He further said matters such as documentation required to obtain a licence, the applicable fees and frequency of inspections must be clearly stated to avoid confusion.
He warned that without transparency, operators risked unnecessary delays and financial strain, particularly for those managing only one or two units as supplementary income.
“Unclear rules could discourage new entrants to the market, reducing accommodation options for budget-conscious travellers and impacting local businesses that rely on tourism spending,” he said.
Wong Shen Yang, 25, a company director managing about 300 STRA units in Kuala Lumpur and Penang, said he remains uncertain about how the new regulations will affect him and the wider industry.
He said the lack of official clarification has made it difficult for operators to plan ahead, particularly when it comes to adjusting business models, budgeting for compliance costs or addressing potential restrictions on rental duration.
“If they impose strict limits or expensive licensing fees, it could hurt not just operators but also cleaners, maintenance workers and other service providers who depend on this sector,” he said, adding that any framework should strike a balance between protecting community interests and allowing the STRA market to thrive.
“Regulation is fine if it’s fair and practical, but it must not be so restrictive that it drives operators out of business,” he said.
The government, he stressed, should focus on setting clear, achievable requirements, such as reasonable licensing fees, transparent application processes and flexible compliance timelines.
Malaysia Homestay/Short Stay Operators Association chairman Lydia Tan said the association welcomes the proposed regulation, provided that the criteria imposed on operators are not overly strict or punitive.
“Many of our operators are small-scale entrepreneurs and some are homeowners simply looking to make use of their properties,” she said.
Tan added that a proper licensing framework could help raise service quality across the industry, ensure fair competition and protect guests’ interests.
However, she stressed that the rules must take into account the operational realities faced by small operators, who may not have the resources of larger hospitality chains.
She also urged the government to consult industry groups, set fair licensing fees and allow adequate transition periods.
In a written reply to Ampang MP Rodziah Ismail, Tourism, Arts and Culture Minister Datuk Seri Tiong King Sing said operators will soon be required to obtain a business licence from their local authorities before registering as tourist accommodation premises.
He had said that the requirement was agreed upon by the ministry and the Housing and Local Government Ministry to improve regulatory control over STRA and tourist lodging premises.
He said this was crucial because the licensing and enforcement of accommodation premises fall under the jurisdiction of the respective state’s local authorities.
Rodziah had asked why the launch of the STRA guidelines had been delayed, and for a revised timeline to ensure smooth preparations for Visit Malaysia 2026.
She also asked how the government plans to align STRA regulations with the Tourism Industry Act 1992 (Act 482) to avoid overlapping jurisdictions.
Tiong said the ministry has completed the preliminary review of Act 482 and aims to table the amendments in Parliament by the end of the year or early 2026.
The proposed amendments followed 54 engagement sessions involving nearly 1,000 participants, including representatives from various ministries, agencies, NGOs and industry players from across Malaysia, including Sabah and Sarawak.
Among the proposed changes are improvements to licensing processes, the introduction of insurance protection, stronger enforcement, registration of digital platforms and the establishment of a Tourism Tribunal.
Tiong had also said in Parliament that the Planning Guidelines for STRA, developed by PLANMalaysia under the Housing and Local Government Ministry, will soon be tabled for Cabinet consideration.
Once approved, they will be presented to the National Council for Local Government so that the respective state governments and local councils can adopt them to ensure a more structured and sustainable STRA ecosystem across the country.
