Unregulated rentals, online sales of illegal stays a threat to VM2026: Group
The Malaysia Budget and Business Hotel Association (MyBHA) has raised concerns over the authorities' lack of control over unregulated short-term rental accommodations and unchecked online sale of unlicensed lodgings ahead of Visit Malaysia Year 2026 (VM2026).
MyBHA national president Sri Ganesh Michiel claimed that lax regulations have led to a 'parallel and illegal' accommodation economy.
'Unlicensed and unregulated short-term rental units,...
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Unregulated rentals, online sales of illegal stays a threat to VM2026: Group
The Malaysia Budget and Business Hotel Association (MyBHA) has raised concerns over the authorities' lack of control over unregulated short-term rental accommodations and unchecked online sale of unlicensed lodgings ahead of Visit Malaysia Year 2026 (VM2026). MyBHA national president Sri Ganesh Michiel claimed that lax regulations have led to a 'parallel and illegal' accommodation economy. 'Unlicensed and unregulated short-term rental units,...
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KUALA LUMPUR: The government has been urged to address the issue of unregulated short-term rental accommodations (STRA) and the unlicensed sale of lodging options through online travel agencies (OTAs) and social media platforms. Malaysian Budget and Business Hotel Association president Dr Sri Ganesh Michiel warned that failure to act immediately could jeopardise the integrity, sustainability and overall success of Visit Malaysia Year 2026 (VMY 2026). "The presence of unlicensed and unregulated STRA units, including apartments, condominiums and private residences converted into transient lodging, has created a parallel and illegal accommodation economy. "These entities operate outside any legal framework, do not pay licensing fees or taxes, are not subject to safety inspections, and undermine legitimate hoteliers and tourism players who have invested significantly in complying with national and local laws and regulations," he said in a statement yesterday. Ganesh said five key issues stem from the lack of regulatory oversight, including safety risks to tourists due to non-compliance with fire safety and health standards, as well as disturbances to residential communities caused by unchecked transient occupancy. Other concerns include loss of tax revenue for local councils and the federal government, distorted market pricing, disadvantageous law-abiding hotel operators and weak consumer protection, leaving tourists vulnerable to scams and unsafe premises. He said despite multiple complaints and discussions, unlicensed accommodations continue to be openly promoted and transacted online, including via major OTAs, classified sites and increasingly on social media platforms. Ganesh said MyBHA is calling for the setting-up of a high-level inter-ministerial task force led by the Housing and Local Government Ministry and Tourism, Arts and Culture Ministry to introduce and enforce immediate regulations for all short-term rental accommodations. "This includes empowering local authorities to consistently and firmly enforce regulations and laws without negatively impacting licensed and registered hotel businesses and establishing minimum safety and operating standards for all accommodation providers," he said. Ganesh also wants the Digital Ministry and Communications Ministry to hold digital platforms and OTAs accountable for listings published on their portals, and enforce legal responsibilities for verifying licensing status before allowing listings. He also proposed the introduction of digital governance standards and penalties for platforms that facilitate illegal accommodation listings, including measures to prevent social media from becoming black markets for unlicensed stays, such as blacklisting, banning, and removing non-compliant (non-hotel) properties from digital platforms.
