Short-term accommodation and hotels can coexist

LETTER | We have read articles that blame short-term accommodation hosts for the declining hotel occupancy rate, among several other misconceptions. We are thus writing as we strongly believe it is important for Malaysians to also understand why hosts like us rely on this economic opportunity.

I started hosting out of necessity in 2016 because, despite the promises of the property developer, I was unable to find a long-term tenant for the condominium unit I bought. I was struggling to make the monthly repayments on my mortgage but putting up my unit for short-term rentals has helped to ease my financial burden. I have met many hosts in similar situations struggling with paying off their bills due to the challenging job market and property oversupply.

The recent conversations and draft regulatory framework which is being finalised deeply worries us because it directly impacts our livelihood and many other struggling Malaysians. While we, along with other short-term accommodation hosts welcome clear guidelines, we need them to be fair. Having read the draft, it is clear that some items proposed are not friendly towards us and will lead to a negative impact on Malaysia’s tourism industry and economy.

In the framework, they are proposing a lengthy registration process that will require us to go through many different authorities including the local municipal council, tax and customs departments, as well as the fire and rescue department. We are more than willing to comply with regulations, but hosts should not have to jump through so many hoops, especially for those who are not hosting as a business. 

For example, Ellina started hosting in her family home in 2013 with her retired parents because the supplementary income only helps to cover their expenses. We believe it would be more efficient to have a simple, unified national-level registration that can be completed online.

What alarmed me was that the framework is proposing a limit on the number of nights we can accommodate guests in our homes. While this is to help hotels with their occupancy rates, it does not address the property oversupply and overhang crisis which has left so many Malaysians in a tight spot. By imposing this cap, they are limiting the much-needed income that hosts like myself rely on for a lifeline. Many hosts have been able to stay afloat and not default on our payments because we turned to hosting. Placing a cap will leave us with no option as we will not be able to find long-term tenants either.

Lastly, the framework also asks that hosts comply with the bylaws set by the management board of the property. This may be challenging unless the boards are given clear guidelines by the government on how to manage short-term accommodation. As hosts, we understand the importance of maintaining safety and security since it is also our home and our building. 

I know many hosts have successfully worked with their management board to develop a registration process for all guests so that there can be greater transparency and accountability on everyone’s part.

We understand that the "sharing economy" is something new and we are happy that the government is looking at ways to regulate it. We just hope that they see how much potential short-term accommodation offers in helping the country to prosper. Tourists that stay with us tell us that it is because they either want a unique local experience or require family-friendly amenities. 

And as responsible hosts, we go the extra mile to make our neighbours aware of our ventures, while at the same time ensure that our guests remain responsible and considerate. This is why we believe short-term accommodation and hotels can coexist because it is a win-win situation not just for us as hosts, but for the tourism industry as a whole.

We urge the government to look into the impact of their regulatory framework on the economy and the well-being of Malaysians like us. We will continue to support fair regulations and want to be able to contribute in our own way to support tourism as well as "Visit Malaysia 2020". We hope that as a forward-thinking nation, we continue to make strides and be an example to other countries.

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.