Penang hoteliers lose patience over growing number of short-term rentals, homestays

HOTELIERS in Penang are losing patience over the growing number of short-term rentals (Airbnb) and illegal homestays despite the state's efforts to control them.

Malaysia Association of Hotels (MAH) vice-president Datuk Khoo Boo Lim said that the constant gripes expressed by licensed hoteliers are about the Airbnb presence, especially over the illegal homestays.

"Many young travellers prefer to chart their own travels, and many opt for Airbnb and homestays. But they should be licensed similar to how hotels operate. For example, permits for fire safety and security are a must," he said.

He said that there is a need to find a uniform regulation which governs both hotels and private short-term stays.

"Also, the fact that house buyers are enticed to purchase properties only to lease them as an Airbnb may sound like an interesting investment option, but ethically, is it right? What about the bona fide hotels? Those who offer gainful employment."

Khoo said that this is in response to grievances within the tourism industry that the direct flight arrivals and tourist figures in Penang do not correspond with the hotel occupancy rates and revenue.

Khoo said that the average occupancy for MAH members is about 60% in the past few months.

It is encouraging and positive in view of the long journey back after the lean years of the pandemic, but there is always room for improvement, said Khoo.

"We want our owners and fellow hoteliers to benefit from direct investments in the tourism industry, but we need proper regulation to be in place to prevent leakages."

An industry insider said that Penang needs to review its statistics gathering, bearing in mind that direct flights or tourist arrivals at airports do not reveal the true extent of the spillover benefits to the leisure industry.

"Some passengers use Penang as a transit to other destinations. So the only benefit is the retailers operating at the airport."

There is a belief among some hoteliers that there is a glut of hotels in Penang.

Penang features approximately 894 registered hotels and commercial accommodations listed across major booking platforms, ranging from luxury beach resorts to budget - friendly stays.

A total of 22,500 rooms are available for bookings throughout the year.

Meanwhile, state executive councillor Wong Hon Wai, who oversees the tourism portfolio, shared that two luxury hotels were awarded the world-acclaimed MICHELIN Keys Certification.

Wong revealed that the Cheong Fatt Tze‑The Blue Mansion, The Qing Suites and Soori Penang have all been awarded One MICHELIN Key under the MICHELIN Guide.

They are the first hotels in Penang to earn this prestigious international recognition, the equivalent of MICHELIN stars for the hospitality industry, said Wong in a statement. - September 20. 2026.