Low Yat Group Calling For More Stringent Regulations For Short Term Stay
A Malaysian hospitality group is calling for more stringent and fair regulations for short term stay booking platforms. Hospitality players are now subject to competition from a growing number of homeowners who list their properties for short term stays without any need for license and certifications.
According to the Low Yat Group, the hospitality industry is vibrant and a key contributor to the national economy. The industry needs to increase its value in the region in terms of their hotel value. They cited that there is a need to create a premier market in line with the nation’s journey towards becoming a high-income nation.
“We want to urge the government to introduce deeper regulation for these booking platforms and properties listed on it as they are currently not subject to service, delivery, quality and safety standards that we are subject to as licensed providers,” said Ms. Low Su Ming, Low Yat Group Executive Director.
Hospitality players have got numerous considerations when setting the price per night for licensed accommodations, including licenses, marketing, workforce, facilities, services, refurbishment, maintenance, location and local taxes.
“Major cities around the world like New York, Paris, Japan and more have built a stringent regulatory framework which includes limited stay days, need for owners to be present in the residence, fire and safety certification requirements and tax declarations for the short term stays that occur through these digital platforms,” said Ms. Low.
The group supports the government’s initiative to push short term stay homeowners to register their units. However, it said that this was only to understand the size of the market, while enforcement of regulations was subject to local councils.
“More needs to be done in terms of regulatory framework. We need to consider the reason behind the high listing, hot spots for short term stays, the impact on the hotel industry and the price war,” shared Ms Low.
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