KUALA LUMPUR, Oct 5 — The Ministry of Tourism, Arts, and Culture (Motac) is currently studying the need to regulate online travel agents (OTA) to ensure tourism accommodation premises also benefit from the transition towards these digital platforms.

Its minister Datuk Seri Nancy Shukri said in the Dewan Rakyat today that the decision to engage these OTA companies is the sole decision of premises owners.

Nancy was replying to Kuala Krai MP Abdul Latiff Abdul Rahman who asked if the Tourism Ministry was looking to introduce a ceiling commission rate on accommodation premises by OTA companies. The rate is currently between 12 to 18 per cent of each room’s booking price.

The minister indicated that to do so, OTA needs to be regulated first.

"We at Motac are studying the need to introduce a new regulation mechanism in this sector of the tourism industry. This regulation will not only ensure the accommodation premises are of good quality, but this can also encourage the cooperation between the ministry and stakeholders to continue improving the industry, and this study will surely look into the issue of commissions charged by the OTA companies.

"However we need to be objective in evaluating such matters because there are many factors to consider in deciding a policy for this matter, such as market forces, supporting the development of digitisation, creating a business environment that is conducive to allow companies to continue operating in Malaysia,” she said during Question Time.

Asked about Motac’s intention to fully regulate accommodations listed under private company Airbnb, Nancy said the multi-ministry effort was still ongoing the involved processes still at this stage still within the purview of the Housing and Local Government Ministry.

"At this point, Motac has yet to register Airbnb because it needs to undergo a pre-process to allow it to become registered premises for accommodation,” she said.