Government Looking To Regulate AirBnB – JMB & Budget Hotels Most Affected By AirBnB Demand

JMB and Budget Hoteliers are complaining on the the impact of AirBnB type of services and the government is getting stakeholders opinion on this landscape. The JMBs are complaining public nuisance in some cases overcrowded lobby, overcrowded swimming pool, noisy neighbours, and AirBnB operators behaving like thugs (in some cases sending death threatening letters) while the budget hoteliers are complaining regarding the uneven playing field. AirBnB is seeing very strong growth especially on tourist arrivals in Malaysia and operating in an unregulated environment thus circumventing numerous business processes.

In the consultation session for Reducing Unnecessary Regulatory Burdens (RURB) on Business Tourism Home Sharing Economy: Recommendations on Short Term Accommodation (STA) Regulatory Framework that is organized by MPC, YBhg. Dato’ Sri Haji Mohammad Mentek, Secretary General, KPKT mentioned that the government is looking into possibility for regulating Short Term Accommodation (STA) business and engaging stakeholders for recommended policy for governance.

 

Facts on Short Term Accommodations from Platform operators

  • 1.5 million guest arrivals (growing with an average of 139% rate year on year)
  • US$48.1 million earnings to hosts (97% of total US$50.2 million receipts – 3% kept by AirBnB
  • 2.2 nights length of stay
  • 31,900 Listings
  • RM4,725 annual median income for hosts

Safety & Security

  • Invalid background of the tenants
  • Lack of privacy
  • Inadequate fire protection installation in units
  • Rise in break-ins
  • Lack of sense of community due to increase number of STA guests
  • JMB received threats from STA operators acting as thugs

Key Issues

Public Nuisance

  • Safety & Security
  • Maintenance upkeep due to wear and tear
  • Commercial activities operating in residential areas

Uneven Playing Field

  • Additional Investment in budget hotel
  • Competition between STA operators and budget hotel operators
  • Potential Loss of revenue from many unregistered operators

Proposed Recommendations On Regulatory Options Points

  • Territorial Coverage
  • Length of Stay
  • Taxation
  • Business License
  • Type of Property
  • Season
  • Host Registration
  • Occupancy Limit
  • Security Deposit

Action patterns and themes across stakeholders

  • Make it mandatory for all STA operators to register themselves with the relevant government agencies
  • Prohibit STA from all residential areas
  • STAs may be allowed to operate should there be low occupancy rate of the said building
  • Prohibiting such STA operations at the residence
21 youths under STA who spent the night in ONE unit were chased out
Backpackers Loitering
STA reckless attitude
Massive check in of tourist staying under STA in one of Residences
Theft & Breakins – In Dec’17, an organized group under STA had broken into the gen-set room at Residences Block and had stolen the entire gen-set and copper cables. This was planned and with the help of an insider
Security Violations – Residences NO LONGER offers the promise of exclusivity, privacy and secured peace of mind even with the private lift system that was meant as added tight security because to the deliberate security breaches of STA through cloning of cards and programmed devices to access the security doors and private lifts –ENABLING ANYONE TO INTRUDE INTO THE PRIVATE UNIT.

Feedback on Recommendation on Short Term Accommodation Regulatory Framework
• Email to: alamin@mpc.gov.my or szaharah@mpc.gov.my
Deadline for feedback
• 30 November 2018

Images source from Malaysia Productivity Corporation.

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