Airbnb reiterated that the Penang government’s proposed guidelines for short-term rental accommodation (STRA) would have an adverse impact on the livelihoods of many everyday Malaysians, if enacted and enforced this year. The accommodation platform has urged for new guidelines in its detailed feedback and policy recommendations to the Penang executive committee.
Airbnb’s calls for fair and practical guidelines are critical as short term rental accommodation continues to gain momentum in Malaysia. A survey conducted by YouGov revealed that 43 percent of homeowners in Malaysia have considered hosting on Airbnb to take advantage of the travel rebound.*
Notably, latest Airbnb data reveals 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% of all hosts are Superhosts.**
Penangite and full-time Airbnb Host, Naseem Ali Shaik Othman, shared that hosting was the second chance he needed after losing his job of 15 years due to the pandemic. “Through hosting, I am able to pay my housing loan and other expenses and support my children’s needs and education. My wife, who suffers from a slipped disc, no longer needs to work overtime to feed the family,” he said.
Naseem shared that responsible hosting is always top of mind for him, “As Airbnb Hosts, we take pride in making sure we host responsibly. This means equipping my guests with all emergency safety protocols including contact information and emergency guidelines. To ensure the comfort and security of my neighbours, I always brief my guests of all house and building rules. 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.”
Fellow Penangite and Airbnb Host, Steven Chuah Kah Hooi, manages a local company that helps homeowners like himself rent out their homes and earn extra income. He adds, “The beauty of home sharing is that it attracts travellers who want to live and experience Penang like one of us. 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. We’ve built a mini ecosystem where small businesses like local shops and family businesses can benefit from guest spending in the neighbourhood. This has really provided a living for many local Penangites.”
Following the return of interstate travel, Penang is a top-of-mind destination among Malaysians with Georgetown ranking among the top searched domestic destinations on Airbnb in 2022. By restricting tourism in Penang, the proposed guidelines may hamper Penang’s domestic and international tourism recovery and jobs growth in the long term.
Nigel Anthony Fernendez, a frequent traveler based in Selangor shared, “When traveling overseas or to other cities within the country for family getaways, Airbnb has always been my preferred option as we can all stay together under one roof, making us feel at home wherever we go. As a homeowner myself, I always remind my family to respect the homes we holiday in and be mindful of neighbors. It is frustrating that the guidelines intend to penalize guests by limiting one’s stays to only three days a week, when we want to stay for longer.”
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. 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 one’s home can be rented out.
For strata buildings with commercial titles, this requires a complex multi-step registration process requiring approvals from two separate entities – the Commissioner of Buildings and the Joint Management Body 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. Under the proposed guidelines, STRA activities are disallowed in strata buildings with residential titles in Penang Island.
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 has 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 percent vote via their Joint Management Body (JMB) or management corporation if any conditions or restrictions around STRA should be implemented.
Mich Goh, Airbnb’s Head of Public Policy for Southeast Asia, India, Hong Kong and Taiwan reiterated, “Hosting has helped so many of our Hosts in Penang and around the world make ends meet and earn supplemental income. We believe that short-term rental should be regulated fairly and progressively to enable everyday Malaysians to share their homes without excessive barriers, especially as they navigate 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.
