Kuala lumpur: The government has been urged to urgently address regulatory gaps in the short-term rental accommodation (STRA) sector to curb the operations of unregulated accommodation providers and unlicensed business listings on online booking platforms. Malaysia Budget and Business Hotel Association (MyBHA) president Dr. Sri Ganesh Michiel emphasized that the licensed hotel industry in the country has been raising this issue for the past 15 years, yet it remains unresolved.
According to BERNAMA News Agency, Dr. Ganesh highlighted that licensed hotels are subjected to stringent business licensing requirements, fire and safety regulations, taxation, employment laws, and various other regulatory obligations. In contrast, unlicensed accommodation operators are able to compete for the same pool of tourists as licensed hotel operators without being subjected to these requirements. This disparity, he argued, poses a threat to the sustainability of the country's hospitality and tourism industry.
Dr. Ganesh's comments were made following the MyBHA Annual General Meeting and the launch of 'TourShield' at a hotel recently. He clarified that MyBHA is not against STRA, digitalisation, innovation, or new accommodation models, but stressed the necessity for these operators to adhere to an appropriate regulatory framework. Compliance with requirements related to safety, licensing, taxation, and consumer protection is essential, he added.
He also raised concerns over accommodation providers marketed through online travel agencies (OTAs) and other digital booking platforms without a transparent process to verify their licensing status and regulatory compliance. Dr. Ganesh emphasized the need for an effective mechanism to verify licenses before premises are commercially listed and marketed to tourists.
He further called for stronger coordination between local authorities (PBTs) and the Ministry of Tourism, Arts and Culture (MOTAC) through a more integrated regulatory framework. The aim is to clearly determine which premises are legally allowed to offer accommodation services to tourists. Dr. Ganesh proposed that every accommodation establishment applying for or renewing approval from the PBT should provide proof of registration with MOTAC and undergo the rating or classification process for recognized tourist accommodation premises.
Additionally, Dr. Ganesh suggested that legitimate accommodation operators be encouraged to join recognized industry associations. These associations could serve as a vital channel between the government and operators, ensuring a better understanding of regulations, providing industry feedback, and addressing operational challenges.