Expanding lodging options for tourists

Short-term stay operators appear to fill a gap in the market, meeting a demand for affordable accommodation in certain areas.

Perak Tourism Association chairman Datuk Mohd Odzman Abdul Kadir said short-term lodgings such as homestays offer an alternative for travellers, especially with the ongoing Visit Perak Year 2024 campaign.

“Some with large families cannot afford to stay in hotels.

“There should be a move to provide licence to these short-term stay operations.

He added that guidelines should also be drawn up.

Mohd Odzman says local short-term stay operators should be regulated.Mohd Odzman said local councils and the government should discuss with all stakeholders to figure out a solution to this.

“It’s high time the government took action to resolve the matter properly,” he added.

In February, Ipoh mayor Datuk Rumaizi Baharin had said short-term stay operators were required to meet the demand for accommodation.

Rumaizi said Ipoh City Council (MBI) was open to discussions with the Perak Malaysian Budget and Business Hotel Association (MyBHA) for a solution.

Perak MyBHA chairman Zamari Muhyi said MBI should be more sensitive towards the matter as it involved the sustainability of the hotel industry.

A quick check on several accommodation booking websites found over 2,000 short-term stay operators in Perak.

Guidelines needed

Mohd Odzman said the term homestay was currently being used loosely by some operators who rented out their properties to visitors as a place to stay.

Some homestays offer farming activities for tourists.

He said a homestay was supposed to be an experience where activities were planned by the operator for tourists.

“For instance, visitors can take part in some agriculture activities at homestays located at farms or padi fields,” he said, adding that such experiences would leave a lasting memory for visitors and could even lead to repeated visits and stays.

But Zamari said the Perak government should come up with guidelines to regulate short-term stay operators.

He said Penang had set up guidelines for high-rises and landed properties last year and Perak should look into creating something similar.

“I think all short-term stay operators need to get licence, like a hotel.

“These operators will also need to get approval from the Fire and Rescue Department and Health Department, comply with regulations and pay taxes.

“They should also be regulated under the Malaysian Communications and Multimedia Commission’s Personal Data Protection Act 2010 to ensure their clients’ information is protected,” he said.

In Penang, the state government has been enforcing two guidelines for short-term stay operators – one for high-rises and the other for landed properties – since March last year.

The guidelines empower joint management bodies (JMB), management committees (MC) and agencies to enforce, take action and even issue fines on short-term stay operators in residential areas if their businesses or guests disturb the peace or flout the rules.

Perak is hoping to attract more tourists by providing additional lodging options in the state. — Photos: RONNIE CHIN/The Star

Permission to operate a short-term stay business is also subject to yearly renewals by the respective JMB, MC or building management agencies, which can reject such applications if conditions are not met.

The guidelines require all short-term stay operators in Penang to submit full annual reports on their operations to the local authority’s Commissioner of Buildings (COB) and also to their JMB or MC.

Zamari, who is also Perak Bumiputera Tourism Entrepreneurs Association president, welcomed Rumaizi’s idea to discuss the matter.

He also said MyBHA, which has 95 members, agreed that there should be greater efforts to open more hotels with four or five-star ratings in Perak.

“There are different market segments based on needs and affordability.

“There are MyBHA members who have taken the initiative to take over the management of budget hotels and businesses that were forced to shut down because of the impact of the Covid-19 pandemic.

“MyBHA also regularly holds programmes and training courses for its members, including hospitality programmes, first aid courses as well as cleanliness and creative contests,” he added.

Legalising plans

Perak tourism committee chairman Loh Sze Yee said the state had plans to legalise short-term stay operators, who would be given up to three years to adapt and make the necessary changes.

Au says renting a whole unit is much cheaper than staying at a hotel when there’s a large group.He said the state wanted to ensure these operators adhered to the rules and regulations, like registered hotels.

“We promised the industry players that we will do this but at the same time, we don’t want to overwhelm the operators with all the requirements.

“We do not want to be too strict with our enforcement for now, but will still enforce some laws,” he said, adding that the state wanted to ensure operators knew the rules and regulations.

Loh said the timeframe given was sufficient for them to do what was required, ensuring that they had insurance coverage and also safety measures in place.

“If they cannot make the changes in the time period given, maybe they should not be in the business,” he added.

He said the state started enforcing the Perak Hotel Enactment, which allowed the regulation and control of safety, cleanliness and nuisance of lodging sites, last year.

The enactment, he said, included all accommodation providers such as houseboats, hotels and short-term stay operators.

“As long as you provide and charge for overnight accommodation, you are included,” Loh said, adding that all short-term stay operators should register with the Tourism, Arts and Culture Ministry or local councils.

“The enactment was passed during the state assembly in May last year, replacing the 96-year-old Boarding House Enactment to regulate the accommodation industry,” he said.

When asked whether the state would have a similar guidelines for short-term stays like Penang, Loh said Perak would do what was best for its own industry.

“Penang has a different market from Perak.

“I believe we are more flexible. We will do what is best for our tourism ecosystem,” he said.

Zamari says Perak government should come up with guidelines to regulate short-term stay operators.He added that short-term stay operators should band together and create an organisation so that they could discuss certain issues with the government.

“I have spoken to some of these operators and they have their own groups, so I think this is a good step forward.

“It is important for them to have someone to represent them and be their voice,” Loh said, adding that Perak government believed that there were over 10,000 rooms provided by short-term stay operators.

“The government may have different views and these operators, as a group, can connect with us.

“For now, they are so dispersed that we really do not know who is who,” he said.

Loh added that short-term operators should not be viewed as competitors but instead, they complemented the other accommodation providers.

He said the market was big and there would be different kinds of accommodation to cater to different needs.

“Some people may want a relaxing time with their partners and may opt to stay in a hotel with three, four or five-star rating for a few nights.

“At the same time, some travelling with family, which includes children and parents, may not want to stay at a five-star hotel even though they can afford it.

“As a family, they may want to stay together under one roof and not in a string of hotel rooms.

“There will also be some who travel with a group of friends, who just want a place to shower and sleep after a rigorous adventure sport outing and choose to stay in a budget hotel, which is convenient,” he said, adding that budget hotels could be found everywhere in the state.

“When Perak has all types of accommodations, it will be good for the tourism industry,” he added.

Running a business

Businessman Mohd Rawi Abdullah is among those who say it was not necessary to register short-term stay business in Ipoh or even form an association with other operators.

He said the property belonged to him and it was up to him to decide what he did with it.

A person looking at different places to stay on a mobile app and website.

“It’s either I rent out my place for the long-term or short-term,” he said when met at his landed property in Gunung Rapat.

“But it’s not every day that I get people renting my place.

“The moment I put up a ‘homestay’ or ‘short-term stay’ sign in front of my place, the rate of my utility bills will automatically change to commercial.

“As for high-rise apartments or condominiums, there will be a management committee to decide whether they are allowed to operate or not,” he said.

Mohd Rawi, who is also chairman of Kinta Riverfront Service Suites JMB, said short-term stays were not allowed at the serviced suites’ premises.

“Before I became chairman earlier this year, I heard there were a few operators but I am not sure if they are still operating,” he said.

He added that it was not easy running a short-term stay as he had come across problems faced by some operators.

“I have heard of cases whereby customers dirtied the swimming pool and there were missing items from the properties.

“For me, I’ve had some customers washing several cars all at once at my place in Gunung Rapat, which forced me to remove the water tap,” he added.

As for safety measures, Mohd Rawi said he has a fire extinguisher and a first aid kit at his property.

“These are requirements for me to buy insurance,” he said.

“People who rent short-term stays at high-rise apartments or condominiums need to know that they are not covered by insurance if anything untoward happens,” he added.

Price matters

Accountant Au Fu Xiang, 38, who visited Ipoh recently, chose to put up at a short-term stay unit.

Loh says three years is sufficient for short-term stay operators to adapt and make the changes.He said among the reasons he chose this option was the price.

Au, from Sungai Buloh, Selangor, said he usually travelled with his parents, wife, his two children and his sister’s family of four.

“For me, renting a whole unit is much cheaper than staying at a hotel when I’m travelling in a large group.

“Some of these short-term stay houses or apartments have three to four bedrooms, which is suitable for my family’s needs.

“If I were to choose to stay in a hotel, I would probably need to book three to four rooms, which is pricier than a short-term stay.

“Short-term stays usually provide kitchen amenities so it is easier to prepare food for young children,” he added.

Au said one of the short-term stays in Ipoh that he stayed in was a three-bedroom condominium unit that cost about RM300 a night.

“During festive seasons, the price will be slightly higher and can go up to about RM500 per night.

“Having compared prices with hotels, the short-term stay was more economical,” he said, adding that prices differed depending on the operator.

“Some villas or bungalows which can accommodate about 15 guests can cost between RM400 and RM500 per night during off-peak season,” he added.

When asked if he had safety concerns while staying at a short-term stay, Au said the condominium he stayed in had its own protocol in case of emergency.

“I believe that most condominiums are equipped with fire alarms nowadays.

“And I will also take a look at the unit’s surroundings and check where the emergency staircase is located,” he said.