Malaysia
Airbnb urges Penang state govt to review proposed guidelines for short-term rental accommodation
The Airbnb logo is seen on a little mini pyramid under the glass Pyramid of the Louvre museum in Paris, France, March 12, 2019. — Reuters pic

GEORGE TOWN, Feb 16 — Airbnb today urged the Penang state government to review its proposed guidelines for short-term rental accommodation (STRA) and adopt a balanced approach instead.

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Airbnb’s Head of Public Policy for Southeast Asia, India, Hong Kong and Taiwan Mich Goh said short-term rentals should be regulated fairly and progressively.

She said Malaysians should be able to share their homes without excessive barriers, especially in light of the rising costs of living.

"We strongly urge the Penang government to reconsider its current proposed guidelines and adopt a balanced and simple approach towards regulating STRA in the state,” she said in a statement issued by the accommodation platform today.

According to Airbnb, the current proposed guidelines for STRA will have an adverse impact on the livelihoods of hosts who are Malaysians.

It said a survey conducted by YouGov revealed that 43 per cent of homeowners in Malaysia have considered hosting on Airbnb to take advantage of the travel rebound.

"Airbnb has shared detailed feedback and policy recommendations with Penang’s executive committee, including requesting the government to allow STRA by default in all strata buildings with commercial titles,” it said.

It also proposed that for strata buildings with residential titles, residents should be able to continue using the existing Strata Management Act 2013 (SMA 2013), and collectively decide with a 75 per cent vote via their Joint Management Body (JMB) or management corporation regarding STRA.

It pointed out that the in the current guidelines for strata buildings with commercial titles, there is a complex multi-step registration process requiring approvals from two separate entities — the Commissioner of Buildings and the JMB of the building.

"This applies even to Malaysians who have purchased their unit with the assurance from developers that they can carry out commercial activities, including STRA, to generate income to pay off their mortgage,” it said.

Under the proposed guidelines, STRA activities are not allowed in strata buildings with residential titles in Penang Island.

"Following the return of interstate travel, Penang is a top-of-mind destination among Malaysians with George Town ranking among the top searched domestic destinations on Airbnb in 2022,” it said.

The accommodation platform warned that if the strict proposed guidelines for STRA were implemented, it may hamper Penang’s domestic and international tourism recovery and job growth in the long term.

It claimed that the proposed guidelines include limiting the length of guest stays to a maximum of only three days, and a maximum of 180 days a year that a host’s home can be rented out.

"If approved, the current guidelines proposed by the Penang government could pose excessive hurdles that severely restrict the ability of local Malaysians to share their own homes in the long run,” it said.

Airbnb revealed that the platform has 1 million superhosts around the world, with a 4.8 or higher average overall rating based on Airbnb guest reviews in the past year.

"In Malaysia, over 13 per cent of all hosts are superhosts,” it said.

One of the hosts, Naseem Ali Shaik Othman, said hosting gave him a second chance after he lost his job due to the pandemic.

The Penangite and full-time Airbnb host said it is through hosting that he was able to pay his housing loan and support his family so his wife no longer needs to work overtime to feed the family.

"As Airbnb Hosts, we take pride in making sure we host responsibly,” he said.

This meant that guests were equipped with all emergency safety protocols and also briefed on all house and building rules, he said.

"I also make it a point to inform building management that my house is used for short-term rental and is adhering to all the rules and regulations, register my business as a company, and declare tax for my income,” he said.

Another host in Penang, Steven Chuah Kah Hooi, manages a local company that helps homeowners like himself rent out their homes and earn extra income.

"The beauty of home-sharing is that it attracts travellers who want to live and experience Penang like one of us,” he said.

He said it helps boost the local economy through increased spending on things like lodging, food, and entertainment.

"Through hosting, I’ve built great friendships with many small Penang businesses like restaurants, gift stores, cafes, electricians, plumbers and even Grab drivers,” he said.

He said there is now a mini ecosystem where small businesses like local shops and family businesses can benefit from guests spending in the neighbourhood.

"This has really provided a living for many locals,” he said.

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