Penang hoteliers are calling for more consistent regulation of short-term rentals and homestays, as the industry continues to face competition from Airbnb and other private accommodation options.

Malaysia Association of Hotels (MAH) vice-president Datuk Khoo Boo Lim said licensed hoteliers had raised concerns over the growing presence of unlicensed homestays, particularly as more travellers opt for short-term rental properties.

He said private accommodation providers should be subject to regulations similar to hotels, including requirements related to fire safety and security. Khoo also called for a uniform regulatory framework covering both hotels and private short-term stays.

The issue comes amid concerns within the hotel industry that tourist arrivals and the number of direct flights into Penang have not translated proportionately into hotel occupancy and revenue.

According to Khoo, the average occupancy rate among MAH members has been around 60% in recent months. While he described the figure as encouraging following the downturn during the pandemic, he said there was still room for improvement.

He also questioned the impact of properties being purchased specifically for Airbnb use, noting that such arrangements could divert tourism-related spending away from conventional hotels, which contribute to employment in the hospitality sector.

An industry source also suggested that Penang’s tourism statistics may not fully reflect the benefits reaching the wider leisure industry, as some passengers arriving via direct flights could be transiting to other destinations. In such cases, the immediate economic benefit may be limited to businesses operating at the airport.

The concerns come as Penang’s accommodation sector continues to expand. There are approximately 894 registered hotels and commercial accommodation establishments listed across major booking platforms, offering around 22,500 rooms.

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