GEORGE TOWN: Short-stay accommodation operators in Penang have welcomed the state’s revised licensing policy but are calling for a multi-unit licence to make compliance more affordable for operators managing several properties.
Malaysia Homestay and Short-Term Rental Association chairman Lydia Tan said the group’s biggest concern had been the RM1,800 annual fee for private short-term accommodation units.
She said the fee, together with other compliance costs, could place a heavy burden on small and medium-sized operators.
“When one company manages several units under the same SSM registration, responsible person and management system, there is no reason to put each unit through the same operator licensing process again,” she said.
Tan said the association welcomed the state’s consideration of reducing the licence fee to RM500.
However, she said a multi-unit licence would further reduce compliance costs for companies managing multiple properties under a single management system.
She said such a scheme would lower costs for operators, reduce repetitive paperwork for authorities and encourage more professional operators to register and comply with regulations.
Tan said another unresolved issue was the requirement for landed residential properties to undergo a change of use, as the process remained costly and might not be financially viable for many existing operators.
“Once the grace period is over, many Airbnb operators with landed properties could be forced to shut down if they cannot afford the conversion,” she said.
The association wants the state to review the conversion requirements and explore a more affordable route to compliance for landed properties.
Tan also urged the state to establish a permanent industry working committee to advise on future regulatory changes involving licensing, fees, enforcement, safety requirements and matters concerning joint management bodies or management corporations.
She added that licensed operators should be recognised as part of Penang’s tourism ecosystem and given opportunities to participate in tourism roadshows, travel fairs and Visit Penang promotions.
On Friday, State Local Government and Town and Country Planning Committee chairman Jason H’ng Mooi Lye announced amendments to the Penang Private Short-Term Accommodation By-Laws 2026.
The amendments double the room cap from five to 10 and revise the licensing and annual private short-term accommodation fees.
Under the new structure, the annual licence fee is RM500 per unit, plus RM200 for each additional room, capped at two additional rooms.
The annual private short-term accommodation fee is RM400 for a one-room premises, RM600 for two rooms, RM800 for three rooms and RM1,000 for four rooms. Premises with five to 10 rooms will be charged RM1,800 a year.
The state executive council approved the amendments on Monday, and they were being gazetted when H’ng made the announcement.
The amendments are scheduled to take effect on Jan 1, 2027.
They also provide a clearer definition of private short-term accommodation, distinguishing it from hotels to prevent hotel operators from relabelling their premises to circumvent hotel licensing requirements.
H’ng stressed that the changes did not mean the state was loosening its regulations.